Episode Transcript
[00:00:00] Speaker A: I am speaking with Jen Jones. She's the AARP vice president of government affairs. Jen, thank you so much for taking some time for me. Really appreciate it.
[00:00:07] Speaker B: Thanks so much for having me.
[00:00:09] Speaker A: We know over the past few years we've gotten a big cost of living adjustment for our seniors, for our Social Security recipients in the country this year, not quite as large as we've seen in the past, kind of good and bad there because that means inflation is coming down. So that's the good. Right. But the bad part, I guess, is that the ecola, the cost of living adjustment, not so big, two and a half percent this year. Talk about what that means for our Social Security recipients in the US.
[00:00:39] Speaker B: So thanks so much, Matt. Yes, not as big as it has been in prior years, but you are absolutely correct, a lower cola means lower prices at the pump, lower grocery prices. And so it's a good thing, even though it doesn't exactly feel that way for many retirees.
This cost of living adjustment, this annual increase, is honestly essential for ensuring that Social Security recipients receive the full value of their earned benefit. And we know just how important that is given that for 40% of older Americans, Social Security is their primary source of retirement income.
[00:01:17] Speaker A: Yeah. And that really is essential. Is this essential lifeline for so many people?
Are there basic sort of, I guess, guidelines or thoughts about when Social Security recipients, when they're eligible? I know that we, it sort of depends for us, at least as far as our shows on retirement radio network, that it kind of, we always sort of tell people, it kind of depends on your individual situation about when people should start claiming their Social Security benefits. Is that sort of the advice that you would give to folks as well?
[00:01:53] Speaker B: Absolutely. So we get this question all the time. We know that you can collect Social Security as early as 62, but if you do that, you'll lose part of your earned benefit. So we often encourage people to wait, if they can, to full retirement age, which is 67.
It's a hard question to answer. So we typically tell people to think about your financial position, how much have you saved for retirement? Think about how much debt you're currently carrying. Think about your physical health. All of those things are important to think about when making this decision, if you can. We want you to get as much of that earned benefit as you possibly can. So we want you to wait as long as you can. But we're also really clear that for some people, that's just not an option.
[00:02:44] Speaker A: Yeah, that, that's absolutely right. And once again, it, as you said, really depends on your individual situation and what's best for you. And I think a lot. Do you find that a lot of people sort of have this maybe misconception, uh, ahead of time to start claiming their Social Security benefits, that it's kind of this one size fits all sort of thing, and there, there aren't many decisions that need to be made when it comes to claiming Social Security, but it really is more individualized than people kind of realize.
[00:03:15] Speaker B: Absolutely. And, you know, honestly, you know, I think most people don't really start thinking about it until they hit sort of 50 ish, and then they're like, oh, my. I gotta start thinking about what it means or what retirement could look like for me. But there's so many decisions involved, and so we encourage people to sort of start planning as early as you can. And we also do a ton of work at AARP around retirement security and retirement savings. And so we encourage people to start thinking about their future and what they want that to look like as early as possible.
You know, I often say that, you know, Social Security was never meant to be the sole source of retirement income, but it's turned out to be that for, you know, again, over 40% of older americans in this country. And so the earlier you start thinking about sort of what you want your life to look like in retirement and you start saving for that, the better off you'll be.
[00:04:13] Speaker A: Yeah. 100%. And that fact that you just shared there, that it is a sole source of income for so many people, really highlights the need to shore up Social Security as well, because there are concerns, there are projections that within the next decade or so, the Social Security trust fund, the one that funds retirement benefits for people, is going to run dry. And so what kind of work is AARP doing to sort of advocate for Congress to help shore up Social Security for the future?
[00:04:47] Speaker B: So I often say that it's not as if we didn't see this coming. Right. We have known for a long time that, you know, with sort of lessening revenue with and serving more people, the trust fund was starting to sort of, the amount of money in the trust fund was starting to sort of lessen. You know, we have been urging Congress to sort of come together in a bipartisan fashion and come up with a comprehensive solution for Social Security's financial future. Right. It is simply too important to millions of people to leave this to the last minute. Right.
You know, but, you know, Congress, as we know, moves at its own pace.
But, you know, ARP and its 38 million members are advocating every day to make sure that Congress is aware that this is important to us. Here is the impact, and Congress needs to act soon.
[00:05:47] Speaker A: Yeah. Getting, you know, people in DC to agree that the sky is blue on any given day seems like a, like a task these days. So thank you for that work on behalf of the seniors and Social Security recipients in this country.
So just about time for us to wrap things up here, Jen. But anything else that you would like to add before we have to run?
[00:06:09] Speaker B: Yeah. You know, generations of Americans have been able to count on Social Security to help them live their retirement years with some measure of dignity and independence.
It's something that older Americans care about deeply, not only for themselves, but for their kids and their grandkids. So, you know, protecting and strengthening Social Security has been and will continue to be one of AARP's top legislative priorities. If you want to engage, if you want to get involved and you want to join us in that fight, I encourage all of your listeners to visit aarp.org. join us.
[00:06:43] Speaker A: Wonderful. Jen Jones with AARP. Really do appreciate your time. It's been a pleasure. Hope to talk to you again soon.
[00:06:49] Speaker B: I love it. Thanks so much. Mandez.
