MIKE TOWNSEND: August 14 marked the 89th anniversary of President Franklin Delano Roosevelt signing the Social Security Act into law. It's likely that everyone listening to this podcast has never received a paycheck that didn't have Social Security tax withheld.
The bedrock social safety net program was a direct result of the Great Depression, which hit the United States in 1929 and had the country in its grip for more than a decade. That long, bleak period was devastating for everyone, but those who were close to retirement or already retired quickly ran through their savings and were among the most severely impacted.
President Roosevelt conceived of Social Security as a system where workers contributed through taxes while employed to provide for their own future. Social Security is not and never has never been a welfare program.
Today, 55% of the elderly rely on Social Security for the majority of their income. One in five people in U.S. are receiving Social Security benefits – we're talking 65 million people. On average, individuals receive $1,827 per month, with a maximum benefit that can be as high as $4,194.
To fund your benefits, both you and your employer chip in equally—as a worker, 6.2% of your salary is withheld for Social Security, and your employer matches that for a total of 12.4%. If you are a business owner, you pay both the employer and the employee tax for that same total of 12.4%. If you make $100,000, that's $12,400 a year going into the Social Security system. Over a 40-year career, that a serious contribution.
If that same amount of money was going straight into your portfolio, you would have a plan for it―and it should be the same with your Social Security benefits. But there are so many decisions to make, and the answers aren't the same for everyone. So where do you start to make a plan, especially if you don't have confidence that Social Security will even be there when you need it?
Welcome to WashingtonWise, a podcast for investors from Charles Schwab. I'm your host, Mike Townsend, and on this show, our goal is to cut through the noise and confusion of the nation's capital and help investors figure out what's really worth paying attention to.
In a few minutes I'll be joined by Susan Hirshman, director of wealth management here at the Schwab Center for Financial Research, to talk about how Social Security fits into your financial plan and address some of the biggest mistakes, biggest misconceptions, and biggest scams that are ever-present.
But first, here is a brief update on what I'm watching right now.
Usually, I have three things I try to highlight from the nation's capital, but Congress is not in session during the month of October so that lawmakers can be home campaigning. They will return to Washington on November 12 for the post-election "lame duck" session—and I'll have plenty of thoughts on the post-election dynamics then. But, for now, there's not much happening outside of the countdown to Election Day. So here are a couple of quick thoughts on the state of the race.
The presidential race remains excruciatingly close. As the week began, the website 538, which does a great job of aggregating polls, found that the average margin in six of the seven battleground states is less than 1 percent—as close to tied as we can get.
In a race this close, outsized attention can be paid to tiny movements in the polling averages—movements that normally wouldn't seem remarkable at all. None of this is a reason to think the race is changing in any significant way. The race in the seven battleground states is just so close that we overly scrutinize the slightest movement in the polls.
When it comes to the congressional races, overall, my view that Republicans are likely to emerge with a small majority in the Senate remains unchanged.
And I continue to think that the Democrats have a slight advantage in the battle for the House of Representatives. But, like the Senate, I think the majority in 2025 will be razor-thin in the House, no matter which party ends up winning.
As I've traveled around the country the last few weeks, it seems like the most common sentiment among the investors I've been talking to is exhaustion: They just can't wait for the election to be over. I think the markets are not paying much attention to the day-to-day micro-dramas in the race—and so this is my regular reminder that investors should not get caught up in that either. Don't let the emotions of the election interfere with good investing decisions. We'll have plenty of time to break down the implications on key policy issues and the markets after the election is decided.
On my deeper dive, I want to take a closer look at Social Security, a program that is a core element of American life, yet remains dauntingly confusing for many, and it's a program whose future stability is very much up in the air. To dig into how best to navigate Social Security and what the future may hold, I'm really pleased to welcome back to the podcast Susan Hirshman, director of wealth management here at Charles Schwab. Susan joined me earlier this year for a great discussion about Medicare, and I want to tap into her deep understanding of our entitlement programs once again, to look at some of the issues everyone should be aware of when it comes to Social Security, no matter how close or how far from retirement you are. Susan, welcome back to WashingtonWise.
SUSAN HIRSHMAN: Great to be here, Mike.
Well, Susan, as you know, I've been on the road a ton this year, traveling across the country, talking with investors about what's going on in Washington, and how policy can affect the markets and their portfolios. When I get to the Q&A at my events, I know one topic is always going to come up, and that is Social Security. The number one question is some version of will Social Security run out of money, and if so, when? So knowing that's hanging out there, let's address that right upfront.
At the opening of the podcast, I mentioned that employees and their employers are each contributing 6.2%, for a total of 12.4% of a worker's salary to Social Security, and business owners contribute that same 12.4% of their pay. So how is it that we're even asking this question, and why isn't there enough money in the pool?
SUSAN: One word, Mike, "demographics." Since 2021, the money going out of Social Security to pay retiree benefits is more than the money coming in from the current payroll taxes of workers. In other words, the Boomers are retiring, and the generation after, us Gen Xers, it's a much smaller generation, so less workers are paying in. And it's interesting because this is a reversal from the past. In the past, the Boomers were larger than the Greatest Generation. Therefore, when our grandparents and our great-grandparents were retiring, more money was going into the system than was coming out of the system. So over the last 40 years, those extra dollars coming into the system went into a trust fund for future use. And alas, the future is now. Because of the demographics, to make up that difference between what's coming into Social Security versus what's being paid out to Social Security beneficiaries, the Social Security Administration, SSA, has to dip into that trust fund. It's expected that these dippings are going to cause the trust fund to be depleted in about 10 years, say, 2035.
So this is why we hear people saying that Social Security is going bankrupt, and that's not true. Yes, the trust fund will be depleted, but as long as there's workers, there is money going into the system. The issue is that in 10 years, when there is no longer a trust fund to dip into, the money coming in won't be able to cover 100% of the estimated payments to be paid out. Instead, statisticians believe it will be more in the range of, say, 83% of the scheduled benefits.
So those who claim that Social Security won't be around at all when today's young adults retire, and that young adults will receive no benefits, that's mistaken. However, if those younger workers want full benefits, they really should talk to their congressional representatives. They should really get involved and make their voice heard, as they say, as Congress is the only governmental division that can make adjustments to this policy.
MIKE: Yeah, at the end of the day, it's just a math problem―more money going out than there is coming in, and the program's been on this track for decades, and everyone on Capitol Hill has known it for decades. So what are the options for Congress to solve this?
SUSAN: Generally speaking, the basic solutions are just around ways to get more money coming in, in other words, raising the payroll tax, or having less money going out, in other words, reducing benefits overall, or increasing the age at which you can start benefits, or reducing the cost-of-living adjustments, or some combination thereof. And so when you look through many of the proposals, though, they tend not to apply to current retirees or people approaching retirement.
So when we look out to the future, I think the Social Security Administration says it best. "It depends on the wants and the desires of the American people as reflected by the actions of their elected representatives in Congress. It is clear that modifications of the program benefit and tax levels can be made within the current program structure to restore sound financial status." But here's the most important part, "It's up to each generation to come to a consensus on the tax levels it is willing to pay, and the benefit levels it wants to receive."
MIKE: Members of Congress have been debating what to do about Social Security for decades, and everyone knows that the potential solutions are exactly the ones you just laid out, but the problem is all of those options are politically perilous. As you said, you can reduce benefits, you can raise the retirement age, you can raise the amount of income that is taxed, you can raise the tax rate, but all those things are very difficult votes to take as a member of Congress, and then go home and explain why you voted to increase taxes or cut benefits. I get asked all the time when I think Congress will act, and the honest answer is that I don't know. I'm pretty confident it won't be in either a presidential election year or a midterm election year because proposing changes to Social Security remains a politically difficult thing to do. Maybe 2027, the year after the midterm election and before the 2028 presidential race really gets underway, maybe that's the year Congress takes action. But given the inaction over the last couple of decades to address a problem everyone knew was coming, I must say I'm not particularly optimistic.
But Susan, I want to turn our conversation away from the policy debate and towards some practical thoughts on how people should be thinking about Social Security. So let's start with younger people, say, under 55, and really, what about those in their 20s or 30s for whom retirement seems really far away? How should younger people be thinking about Social Security in their planning?
SUSAN: Often, I hear younger people saying, "Don't include Social Security as part of my long-term financial plan. I read that it's going to be bankrupt, or there's no hope for it," or something similar to that effect. So the first step, I believe, is really education. We need to educate people about how the program works, the difference between the trust fund and the ongoing contributions into the system from current workers. And then have them ask their question of "What if?" "What if it's zero?" "What if it's the same as today?" Or "What if it's somewhere in between? "And how does that affect my current spending, savings, and long-term plan?" In essence, what we are doing is evaluating a risk of a guaranteed cashflow that may or may not be there.
And like any risk, there's three steps. First is to identify the risk and the repercussions of that risk. The second is define a probability of that risk happening. And third is to decide, "Do I want to take action today?" For example, "How much of that risk do I want to cover?" So here's what I mean. Let's say you're 35, and you're nervous that Social Security will not be available to you. And so that means based on your current savings plan and your overall goals, you're not going to be able to maintain that lifestyle you want in retirement. So without receiving Social Security in retirement to achieve the goals that you want, you're going to have to save an additional $1,000 a month today. So you need to decide what do you want to do? Do you want to save an additional $1,000 a month, or, say, hedge your bets a bit, and save only an additional 300, and know that if the risk that Social Security is not there actualizes, you'll either need to lessen your lifestyle in retirement, change some of your more medium-term goals, or work longer than you planned out.
But again, I want people to remember as long as there are workers paying in, there will be money going into the system. Furthermore, Boomers are going to start aging out of the system. Today, the oldest Boomers are 78, and interestingly enough, going back to the demographics, there are 65 million Gen Xers, and there are 72 million Gen Ys. So we may see a reversal of the number of those drawing Social Security, as opposed to those contributing to Social Security in the future.
But the bottom line is Social Security should be thought of as an income stream or an annuity stream over your life expectancy post-retirement. And like any other potential future source of income, you analyze the probability of receiving that income and make focused and thoughtful decisions based on relevant information that you have today, and most importantly, monitor it over time. As time goes on and you get more clarity, you adjust your plan as needed.
MIKE: Yeah, there's no question that planning is really important for younger workers. And I really homed in on that word "monitoring," because one thing I think is helpful for younger people is to make sure they set up their online access to be able to see their wage history regularly. Because you don't see your Social Security benefits in the same place as your bank accounts and your 401(k), it really can be easy to forget all about them.
Well, Susan, what about people older than 55? What should they be considering, assuming everything stays the same for now?
SUSAN: For those closer to retirement today, checking to see that your wage history has been recorded correctly, it's a really good idea, because mistakes do happen. And because your Social Security benefits are based on the average of your 35 highest years of earnings, you really want to ensure that they're correct. If you think there's an error, you can request a correction online in your Social Security My Account or call the Social Security Administration directly. Keep in mind that generally there are exceptions. You only have … and I know this is a strange number, but you only have three years, three months, and 15 days from the end of the taxable year in which your wages were paid to get a correction. Furthermore, understanding how critical your Social Security benefits are to the success of your overall wealth management plan is really paramount.
The bottom line is that Social Security is something that you can't look at in isolation. It really needs to be evaluated in terms of your personal situation, your marital status, your preferences, your tax situation, and overall plan. Then it's knowing the rules. Most importantly, whatever you do, don't wait until the last minute to plan. Develop your roadmap today.
MIKE: I recall from our conversation about Medicare that we talked a lot about rules, and it's just never as simple as it seems. It's often a little convoluted. Am I right that that's the case in Social Security as well?
SUSAN: You're exactly right, and the hard part is that just when any of us think we understand the rules, they change.
MIKE: Well, we could have three episodes and probably not get through all there is to talk about with making Social Security decisions, and I did promise that we would tap into your deep knowledge to talk about missteps, misconceptions, and how to avoid getting scammed. But first we want to point folks in the right direction to get more info. I know there are tons of articles and videos out there about Social Security, some surely better than others, but what is the best place for people to go to get clear information on what the rules are right now and how to apply them?
SUSAN: You're so right. There's thousands of pieces of content on Social Security, but some of it may be out of date. The best place to start, believe it or not, is the Social Security Administration's website, ssa.gov. There's several calculators, a lot of educational content, and a really good search tool. So I'd suggest that you start with the FAQs in the search bar.
Additionally, as you mentioned just a moment ago, if you haven't already done so, go to www.ssa.gov/myaccount and sign up so you can get personalized retirement benefit estimates, check your wage history, as well as other resources. And of course, Mike, schwab.com has numerous articles on the subject.
Where you shouldn't go is to people who have been retired for a while. Rules have changed, and some planning strategies that were available to retirees in the past, they are no longer available to newer Social Security enrollees. That's especially true if you're a couple. So my advice, don't ask anyone 70 and over what their Social Security strategy was because they likely have out-of-date information.
MIKE: Well, sometimes you get some eye rolls when you suggest someone go to a government website for good information, but I do think that the Social Security Administration's website is a particularly good one.
Susan, one of the best things a pro like yourself can help us with is avoiding some of the missteps that people commonly make. So let's talk about some of the biggest ones and see how we can steer clear of them.
SUSAN: I think there are two big ones right off the bat. For everyone, it's not thinking their timing through. And for couples, it's not considering Social Security from a team perspective, instead by an individual perspective.
I'll start with not thinking the timing through. So more than 25% of retirees take their Social Security at the earliest age possible, age 62. But that's also when it's at the lowest value, and there's no requirement that you begin taking your benefits at age 62. When I ask why, most of the reasons are emotional versus factual. The people that take it at age 62 fear that Social Security won't be there for them, or it's what their parents did, and so on and so on. So we try and help people really separate the emotion from fact. What we suggest to people is that, when you're thinking about what age that may make the most sense for you, look at six factors.
And the factors are, one, earnings history; two, marital status; three, health-life expectancy; four, your current employment status and income; five, your financial plan; and six, your personal beliefs. Here's an example. Let's say you're single, and based on your family history, your past lifestyle, your current health status, you feel for sure that you're not going to live to average life expectancy. In other words, you want to start early and get paid for as long as possible in that shorter lifespan that you expect. And if you're single, this may work to your advantage. However, if we change that scenario to a couple, and the spouse will rely on survivor benefits, the decision may be to start as late as possible to maximize your benefit amount so that your spouse will have the largest survivor benefit possible. Generally speaking, a survivor spouse gets 100% of the other spouse's benefit. That's what I mean by working as a team. Without looking at survivor needs, only looking at your own needs, you can really be doing a disservice to your spouse. Listen, there is no one right answer, and everybody's situation is different, but choosing the right timing is so important because typically it's for the rest of your life.
MIKE: Ah, there's that word, "typically." I have a feeling there's an exception that people may not be aware of coming.
SUSAN: I wouldn't say that it's an exception. More perhaps a correction of being overly anxious and not thinking things through, or perhaps even a change in your situation.
Here's another example. Let's take our single person that decided to take Social Security early because he was retiring at 62 and felt like he wasn't going to have a long life. After three months of being home, he was bored and went back to work, so he no longer needs the cash flow from his Social Security benefit. And since he started working again, he realized that maybe his doom and gloom feeling towards his life expectancy was a tad bit over exaggerated, and that extra income for Social Security is now causing him to be in a higher tax bracket. Needless to say, he's sorry that he signed up early for Social Security, and now he rather would have waited for a higher monthly benefit. In this case, since he was collecting Social Security for less than 12 months, and he was willing to pay back the benefits he already received, he's able to do what is known as a withdrawal of benefits, and, in essence, wipe his slate clean, and then start up his benefits at a more appropriate time.
However, if it was longer than a year, then he would have to keep going until he reached his full retirement age, or FRA, which can range from age 65 to 67, 67 if born 1960 or later, and then do what is known as a suspension of benefits. Unlike the withdrawal of benefits, there is no requirement to pay back what he received, and what he's not getting during the suspension period is added to his new benefit when he unsuspends. But the ironic part of this situation is that if he started Social Security, say, at age 62, then he went back to work at age 64, longer than a year, and his FRA is age 67, he would be paying into Social Security while working, and drawing Social Security at the same time until he was able to his suspend his benefit at age 67, and then restart at age 70.
So bottom line, some timing mistakes are fixable, but not all, especially when it comes to couples and survivor benefits.
MIKE: Well, in my experience, there are a lot of timing mistakes, as I'm one of those punctual people and my spouse is … well, not. But what other mistakes in the Social Security context are coming?
SUSAN: Well, this one is both a mistake and a misconception. And Mike, I don't want you to get too excited because I know you love talking legislation, but this one has to do with the federal legislation from 2015. Here's the deal, for a spouse to collect spousal benefits, the higher-earner spouse must be taking Social Security. The misconception is about a strategy that used to be available called "file and suspend." It used to be that the higher-income spouse could file for Social Security, allowing the lower-income spouse to file for spousal benefits, and then the higher-income spouse would suspend their benefit and wait until, say, age 70 in order to maximize their benefit, while the lower-income spouse was collecting spousal benefits all the while. But the last group of people that were able to do this had to have filed to suspend their benefits by April 30, 2016, and those people turned 70 in 2020. The mistake is if the higher-income suspends benefits today, it also suspends any spousal benefits. Again, Social Security with marriage, it is a team sport.
MIKE: Ah, the beloved Bipartisan Budget Act of 2015, an oldie but a goodie. So let me guess, the next misconception is that the concept of a restricted claim is still available.
SUSAN: You got it. And here again, a misconception and a mistake. This is for couples where each spouse has their own work record. Their restricted claim for spousal benefits allowed a spouse to sign up for Social Security at an early date and restrict their claim to their spousal benefit. This allowed their own record to grow, and that at age 70 they would switch to their own maximized retirement benefit assuming it would be larger than their spousal benefit. The last eligible group of beneficiaries who can use this claiming strategy turned 70 in 2023. Now, when you file for benefits, you do not have the option of filing a restricted application for only spousal benefits. When you apply now, the Social Security Administration will pay the higher of your own benefit or spousal. It's now referred to as "deeming rules." The mistake is obviously the spouse believing that this is still an option and electing Social Security earlier than intended, and not maximizing their own benefit.
MIKE: Well, I can see now why earlier you said don't talk to older people about their Social Security strategy because a bunch of the rules have changed over the last few years, and that can really mess you up. Any other mistakes or misconceptions we should talk about?
SUSAN: Well, since we're on the couples theme, I'll say this: The maximum spousal benefit is 50% of the higher earner's benefit at their full retirement age, or FRA. It will never be more than 50% of their amount at their FRA. It doesn't matter when that higher-earner spouse started taking their Social Security as long as they're taking it. The baseline for the spouse is always going to be 50% of the higher earner's benefit at the higher earner's full retirement age. So even if that higher-income spouse waits till age 70, or started early at age 62, the spousal benefit is still going to be 50% of the higher-income spouse benefit at their FRA. So two things to think about. One, is first, that to get the full 50%, the lower-income spouse must wait until their own full retirement age to claim their spousal benefit. And then next, there is no reason for the lower earner to wait beyond their full retirement age, because as I said, the spousal benefit will never be greater than 50% of the higher-income spouse's benefit at FRA. There is no benefit to the lower-earning spouse to wait past their own FRA. They're just going to be leaving money on the table.
MIKE: I can see how not knowing the rules can maybe cause some friction with couples, hopefully not enough that they break up. But all kidding aside, what does happen if you get divorced?
SUSAN: So glad you asked me because again, misconception and mistake. It's really important to know that if you qualify to claim a spousal and/or a survivor benefit based on an ex-spouse's working record, you need to claim it. The mistake I have seen is that women have purposely not claimed their spousal benefit because they wanted nothing to do with their former spouse. Anyone in this situation needs to know that it is between you and Social Security. It does not require any communication between the ex-spouses. That ex-spouse will not even know, will not even get any notice that it's happening because it doesn't affect their benefit. They don't even have to be currently taking benefits as long as the ex is at least 62 and you've been divorced at least two years. And even if that ex-spouse remarried, it will not affect their new spouse's benefit.
Another misconception is that if you're married multiple times, you can get the largest benefit from any of those former spouses. And yes, you want the benefit from the spouse with the best record, but you have to qualify, meaning that you were married to that spouse for a minimum of 10 years, and that you're currently single. And if you're entitled to benefits on your own record, your benefit amount must be less than you would receive based on your ex-spouse's work. In other words, you'll get the higher of the two benefits for which you're eligible, but not both. If you're married currently to a new person, that's the person whose benefits you're going to claim on.
However, we've been talking about spousal benefits. The rules are slightly more favorable when it comes to being currently married when we talk about survivor benefits. If you get remarried after age 60, and if you're widowed twice, you may be entitled to survivor benefits based on the work records of the higher earner of the late spouses. So for all those people out there who are 59, you may want to consider waiting another year to get married again if it may maximize your survivor benefits later.
MIKE: Well, Susan, we've talked about how daunting it can be to understand Social Security, but when you add to that the scams that are circulating, it really does get scary. So let's talk about the best way not to get scammed, as well as touch on some of the biggest scams out there right now.
SUSAN: Yeah, a recent one is scammers circulating information around a $600 fake Social Security benefit increase. They try to get people's personal information by offering to help them receive an additional Cost of Living Adjustment, COLA, from the Social Security Administration.
Another one is a hybrid scam. It starts with an email that appears to be from Amazon or PayPal and says something's wrong with your account. And when you call in, the first party acts like they're trying to help you with one issue, but then they say they see your Social Security number has been compromised and offer to transfer you to a Social Security representative. That's the beginning of them trying to get you to share your personal information so they can help clear up that problem, and that is their entry into stealing your information and money.
There's so many scams, and new ones are coming all the time that we can't cover them here, but there are things to watch out for in any scam. So scammers will use fake badges and credentials to pose as official SSA agents, but agents aren't coming to you. Scammers will also use threatening language, like saying your Social Security number has been compromised, or your benefits may be suspended, or you can face legal action if you don't comply with their demands. And that's not how Social Security issues are handled. Scammers may make everything urgent to catch you off guard and get you to give them personal details without verification. Scammers also want payment using gift cards, wire transfers, prepaid debit cards, and so on. These are hard to trace, and certainly not how settlements are handled at Social Security.
MIKE: Yeah, those all seem so obvious when you say them, but when you're faced with scare tactics or people who appear legitimate, it can be hard to think clearly in the moment. So what should we do?
SUSAN: Start with you never give out your personal information over the phone unless you are the one who made contact. If you do receive a call from someone claiming to be from Social Security Administration, just hang up and call the Social Security Administration number on their website to verify that they are trying to reach you. Chances are they're not.
If anyone, again, is pushing you to move quickly, send a payment right away, or meet in person to hand over money, don't do it. The Social Security Administration will never ask for immediate payment or demand you meet in person to pay. Again, call the Social Security Administration.
If you receive an email, always check the sender's email address and website to make sure it is a legitimate SSA domain. And again, it's a good idea to regularly go to www.ssa.gov and put in "scam" in the search bar, and you get a whole host of information alerts of scams to be aware of. Or instead, if you're comfortable with social media, you may want to follow #slamthescam on Instagram, X, and Facebook so that you stay informed regarding scam alerts.
MIKE: That's all great advice, and people should be aware that these scams primarily use telephone to contact you, but email, text message, social media, even U.S. Mail are still being used as well. Really important to remember that Social Security generally doesn't call you or contact you out of the blue.
SUSAN: That's so true and so right. These people are sophisticated, so always be on the listen out for red flags like those we just went over. And then we report them to www.oig.ssa.gov. And here's what the SSA has to say.
They say they will never text or email images of an employee's official government identification. They will never suspend your Social Security number. They will never threaten you with arrest or other legal action unless you immediately pay a fine or fee. They will never require payment by a retail gift card, wire transfer, internet currency, or cash by mail. They will never promise a benefit increase or other assistance in exchange for a payment. And they will never mail or email official letters or reports containing your personal information. They only send text messages if you have opted in to receive texts from them, and only in very limited situations, which are that you have subscribed to receive updates and notifications by text, and as part of their enhanced security, when accessing your personal my Social Security account. If you owe money to Social Security, they will mail you a letter with payment options and appeal rights.
But I want to share something that happened to my mother. She recently called me to say that she received an email from Social Security telling her that she needed to log in to her online account and update her details. My first question to her was, "Is there a link?" And when she said yes, I said, "Please tell me you didn't click on the link." And then I went on to lecture her about scams. I'm sure she was rolling her eyes at the phone, and I always like to say, talk about full circle. But the irony of the situation was that it was a real email.
The email is for people who created their my Social Security account before September 18, 2021. The Social Security Administration is enhancing their security and now are transitioning from a username login to a different process that is being used across the federal government, known as login.gov. But as soon as she told me about clicking on the link, I called the Social Security Administration to confirm. Because the Social Security Administration says they will never email you, and then they actually did, I wanted to be sure.
So yes, I waited on hold for a while, but gaining that peace of mind was definitely worth the wait. They directed me to the Social Security My Account website, and pointed out the section stating that we're making changes to the way you access your personal my Social Security account. So it was really helpful, and if you have thoughts that something looks like a scam, calling SSA for verification is always the right thing to do.
MIKE: Well, Susan, you've given us a lot of great advice today. For me, one of the big takeaways is that the information on the Social Security Administration's website is really a good resource, which is not something we can always say about government websites. And my other big takeaway is that it's important to allow plenty of time to really understand your options before you make a quick decision that could seriously impact your benefits or your personal information going forward.
For my part, I'll be watching carefully the debate on Capitol Hill as it unfolds in the coming couple of years. As I said, Congress is keenly aware that they have to do something to shore up the Social Security program, but it's about mustering the willpower to take some difficult votes.
Susan, I want to thank you so much for joining me today. Over the course of two episodes, you have really managed to demystify both Medicare and Social Security, two of the most important and complex social programs in the country. Thanks again.
SUSAN: It was my pleasure, Mike.
MIKE: That's Susan Hirshman, director of wealth management at the Schwab Center for Financial Research. If you missed the episode we did together earlier this year on Medicare, you can still find that by scrolling through the episodes until you get to March of 2024.
Well, that's all for this week's episode of WashingtonWise. We'll be back with a new episode in two weeks, when we will be looking at the fixed income markets and how they might react to the election and the next Fed meeting.
Take a moment now to follow the show in your listening app so you get an alert when that episode drops and you don't miss any future episodes. And I'd be so grateful if you would leave us a rating or a review—those really help new listeners discover the show.
For important disclosures, see the show notes or schwab.com/WashingtonWise, where you can also find a transcript.
I'm Mike Townsend, and this has been WashingtonWise, a podcast for investors. Wherever you are, stay safe, stay healthy and keep investing wisely.
