Buchanan, Larson Introduce Bill to Help Americans Plan for Retirement

Statement

U.S. Reps. Vern Buchanan (R-FL) and John Larson (D-CT) introduced bipartisan legislation Thursday that helps Americans plan for retirement by making it easier to access critical information about their Social Security earnings, contributions and future benefits.

"Too many hardworking Americans enter retirement without enough savings," Buchanan said. "Because Social Security is the primary source of income for a majority of seniors, it is imperative they have a full understanding of their benefits as they plan for retirement."

The Know Your Social Security Act requires the Social Security Administration (SSA) to resume mailing annual earnings statements to the 178 million Americans workers -- between the ages of 25 and 60 years old -- currently paying into Social Security, making it easier for them to keep track of their finances and plan accordingly. Despite a requirement in law to do so, the Social Security Administration abruptly suspended mailing these statements to the vast majority of working Americans in 2010.

Specifically, Social Security's annual mailed statements will include the following information:

How much a worker has earned in a given year
A worker's contributions to both Social Security and Medicare
An estimate of the worker's Social Security benefit at full retirement age
The Social Security benefit a worker's family receives when they pass away
AARP endorsed the bill saying it "would once again place vital, paper Social Security statements in the hands of millions of Americans, to help them more effectively plan for retirement, identify fraud and correct earnings records, and better understand their stake in Social Security."

While the SSA is supposed to be mailing these statements to nearly 180 million Americans, it is only mailing them to the 14.6 million aged 60 and older not currently receiving benefits. Instead, SSA has urged the remainder of that population to access their information through the creation of an online portal, but unfortunately is only being utilized by a mere 16.7 million people. According to Pew Research Center, a staggering 33 million Americans are still living without internet access and many are concerned about sharing sensitive information, such as their social security number online.

Congressman Larson, chairman of the House Ways and Means Social Security Subcommittee said, "Social Security is our nation's foundation to a solid retirement. Americans who contribute to Social Security should receive an update every year so they know what benefits they are earning and can plan for their retirements. No matter what happens in the stock market, Social Security will always be there for them."

According to the Coalition for Paper Options, which has endorsed Buchanan's bill, these statements are viewed by many as "the single most important financial planning tool that most Americans will ever receive."

In 2018, Congressman Buchanan wrote a letter to the Social Security Inspector General, expressing his concerns about the SSA's decision to suspend mailing annual statements to workers between the ages of 25 and 60.

Earlier this year, the House passed Buchanan's Retirement Security for American Workers Act, which makes it easier for small businesses to offer retirement plans for workers. The bill is currently pending in the Senate.

According to USA Today, the average American has less than $4,000 in savings while nearly 60 percent of adults have less than $1,000 to their names.

Buchanan represents over 220,000 Social Security recipients in the nation's seventh-oldest congressional district.

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