Social Security Administration
News Release
SOCIAL SECURITY BEGINS ISSUING
ANNUAL STATEMENTS TO 125 MILLION WORKERS
Beginning
October 1, the Social Security Administration (SSA) will launch
the largest customized mailing ever undertaken by a Federal agency
when it sends an annual Social
Security Statement to 125 million
workers. The 4-page statement is designed to help workers with financial
planning by providing estimates of their retirement, disability
and survivors' benefits. The statement will also provide workers
an easy way to determine whether their earnings are accurately posted
on their Social Security records. This is an important feature because
Social Security benefits are based on an individual's career wage
record.
"The Social Security Statement is a valuable
tool that will help Americans prepare for their long-term financial
security," Social Security Commissioner Kenneth S. Apfel said. "It
puts the future in their hands."
The annual Social Security Statement is the
result of efforts by Senator Daniel Patrick Moynihan to establish
in law the requirement that all Americans receive an annual statement
of potential Social Security benefits. By law, SSA will send the
annual statements to workers who are ages 25 and older and not receiving
Social Security benefits. SSA will stagger the mailing of the statements
throughout the year, with approximately 500,000 statements delivered
each day. Workers will automatically receive their statements about
three months before their birth month.
The results of a recent survey, undertaken
by the Gallup Organization, showed that receipt of a statement played
a significant role in increasing Americans' understanding of Social
Security. The survey showed that individuals who have received a
Social Security Statement from SSA have a significantly greater
understanding of Social Security than those who did not receive
a statement. Those who have received a statement are significantly
more likely to know that (1) the amount of Social Security benefits
depends on how much they earned; (2) Social Security pays benefits
to workers who become disabled; (3) Social Security provides benefits
to dependents of workers who die; and (4) Social Security was designed
only to provide part of total retirement income.
"The results clearly demonstrate that Social
Security Statements are increasing the public's understanding of
the basic features of Social Security," Commissioner Apfel said.
"Knowledge is power, and all of us, young or old, male or female,
single or with a family want the power to plan for our future."
SSA began sending the statements automatically
to individuals age 60 and over in 1995. To date, nearly 73 million
statements have been mailed to individuals 40 and older. In addition,
individuals have been able to request statements from SSA since
1988. To date, SSA has responded to 37 million requests for statements
over the past 12 years.
NOTE TO CORRESPONDENTS: A
fact sheet giving details on the Social Security Statement is attached
Copies of most SSA press releases, as well
as other Social Security information and statistics, are available
at SSA's Internet site, Social Security Online,
http://www.ssa.gov/pressoffice/pressrel.htm
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