The Social Security Statement

July 18, 2022 R47183

The Social Security Statement
July 18, 2022
The Social Security Administration (SSA) is required by law to provide Social Security number
(SSN) holders with annual statements that contain certain information from their Social Security
Zhe Li
records in accordance with Section 1143 of the Social Security Act, as amended. The annual
Analyst in Social Policy
statement is now referred to as the Social Security Statement or the Statement. The Statement is

considered to be one of the important tools SSA uses to communicate with the public and also a
Dawn Nuschler
financial literacy vehicle to assist individuals and households with retirement planning.
Specialist in Income
Security
Under current law, the Statement must be available to SSN holders who are aged 25 or older and

who have wages or net earnings from self-employment. Among other information, the Statement
must contain the wages and self-employment income reported to the SSN holders’ records,

estimates of the payroll tax contributions they and their employers have paid, and estimates of the
potential benefits they and their family members may qualify for based on those earnings.
The Statement includes an individual’s earnings history year by year as shown in SSA’s records. Therefore, it provides an
opportunity for individuals to verify the accuracy of their earnings histories in SSA’s records and to notify SSA if there are
any errors. The Statement also includes information on benefit eligibility for the individual and his or her eligible family
members, as well as estimates of potential Social Security benefits payable to the individual and his or her eligible family
members based on the individual’s earnings history. Additionally, it includes a notification that employment not covered by
Social Security can result in lower Social Security benefits. The benefit estimates can help individuals adjust their
expectations of what the program will provide and inform their financial planning decisions, including when to claim Social
Security benefits. In addition to the annual statement, SSA also provides supplemental fact sheets to provide clarity and
useful information based on the person’s age group and earnings situation.
The Statement was mailed to specific age groups of individuals as required by the act starting in FY1995. In FY2010, SSA
sent over 155 million Statements to SSN holders aged 25 or older who were not receiving Social Security benefits and for
whom SSA could determine mailing addresses. Preparing and mailing the Statements cost about $70 million per year during
FY2000-FY2010. Due to budget constraints, SSA suspended the mailing of Statements in March 2011. Since the initial
suspension in 2011, SSA’s policy on the mailing of Statements has been revised several times. Since May 1, 2012, SSA has
made an online version of the Statement available through a “my Social Security Account” (which allows access to an online
version of the Statement) to SSN holders aged 18 or older. Under the current policy, which has been in place since January
2017, SSA automatically mails Statements only to individuals who are aged 60 or older, are not receiving Social Security
benefits, and have not created “my Social Security Accounts.” Any other individual must create a “my Social Security
Account” to access his or her Statement online or request a mailed paper Statement from SSA.
In FY2018, there were about 38.8 million registered users of “my Social Security Account,” and 16.8 million (or 43%)
accessed their Statements online. In total, about 31.4 million people received or viewed their Statements in any form—paper
or online—in FY2018.
A range of studies have analyzed the role the Statement plays in SSA’s communication with potential beneficiaries. Some of
the findings suggest that the information provided by the Statement can be influential and can increase people’s program
knowledge and change their behavior in Social Security claiming and applying for disabled-worker benefits. Other findings
suggest that its effect on Social Security program knowledge, benefit claiming, employment, and retirement savings is small.
Results of these studies vary due to differences in the data set used, research methods employed, the type of Social Security
knowledge tested, and the type of older workers’ behavior analyzed.
Policymakers may be interested in ways to improve the Statement, thus providing individuals more sufficient and accurate
information to prepare for retirement. Those improvements may involve (1) developing more accurate benefit estimates for
younger workers, women, lower earners and those with zero earnings in the two years prior to receipt of the Statement; (2)
providing additional information related to benefits for spouses and survivors, benefits for workers with earnings not covered
by Social Security, an accrued benefit illustration (i.e., an estimate of the worker’s benefit based on his or her earnings to
date, assuming no future earnings), and other retirement plan information (i.e., information on other potential vested
retirement plan benefits); (3) assessing the effectiveness of the latest version of the Statement introduced in fall 2021; and (4)
exploring Statement delivery methods.
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link to page 36 The Social Security Statement

Contacts
Author Information ........................................................................................................................ 32

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The Social Security Statement

Introduction
Social Security is the single largest federal program both in terms of its budget and the number of
people in the United States who have some connection to the program.1 This includes
beneficiaries who receive monthly cash benefits, as well as covered workers and their employers
who make mandatory payroll tax contributions to support the program.
In 2021, for example, Social Security had total income of $1.088 trillion (primarily from
dedicated payroll tax contributions) and total costs of $1.145 trillion (primarily for benefit
payments). When program costs exceed income (as they do now), asset reserves held by the
Social Security trust funds supplement current payroll tax revenues to meet program
expenditures. At the end of 2021, the trust funds held $2.852 trillion in asset reserves in the form
of special issue U.S. Treasury securities.2
Every month, the program pays cash benefits to more than 65 million people of all ages.
Beneficiaries include retired workers, disabled workers, and the eligible family members of
retired, disabled, or deceased workers (including spouses and dependent children). Currently,
about 178 million people work in employment covered by Social Security.3 Covered workers and
their employers, as well as self-employed individuals, pay mandatory Social Security payroll
taxes to support the program.4 The size and scope of the program is significant considering total
contributions paid by covered workers and their employers, total benefits paid to beneficiaries on
a monthly basis, and the large segment of the U.S. population that has some connection to the
program as a covered worker, as the eligible family member of a covered worker, and/or as a
beneficiary.
The Social Security program was enacted in 1935, and Congress has expanded and modified the
program numerous times over its almost 90-year history. Today, the program rules are extensive,
complex, and in many cases not well understood. Some individuals may pay into the Social
Security system for decades and have little understanding—or an incorrect understanding—of the
benefits that they and their eligible family members can expect to receive from the program. A
lack of understanding about the program and the benefits it provides can undermine public
support for a contributory system with mandatory participation. It can also affect an individual’s
ability to plan for adequate income in retirement or following the disability or death of the
worker. Social Security was not intended to be a beneficiary’s sole source of income. However,
for many beneficiaries, Social Security represents a sizable share of total income. An

1 Social Security is also known by its formal name, the Old-Age, Survivors, and Disability Insurance (OASDI)
program. Social Security is a work-related program administered by the Social Security Administration (SSA). It
protects insured workers and their eligible family members from the loss of income due to the worker’s retirement,
disability, or death. This report addresses the Social Security program. It does not address the Supplemental Security
Income (SSI) program, a separate need-based program administered by SSA.
2 SSA, Office of the Chief Actuary (OCACT), https://www.ssa.gov/oact/ProgData/allOps.html.
3 SSA, OCACT, https://www.ssa.gov/oact/FACTS/index.html. OCACT estimates that about 178 million people will
work in covered employment in 2022 and that about 94% of all workers in paid employment or self-employment are
covered under the Social Security program.
4 The Social Security payroll tax rate is 12.4%. Covered workers and their employers each pay 6.2% of the worker’s
covered earnings, up to maximum earnings of $147,000 in 2022 (i.e., the taxable maximum). Self-employed
individuals pay the full 12.4% of net earnings up to the taxable maximum. The taxable maximum is indexed to average
wage growth in the economy and adjusted in years when a Social Security cost-of-living adjustment (COLA) is
payable.
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understanding of the types of benefits the program provides, when benefits are payable, and the
estimated amount of benefits can help individuals make informed financial planning decisions.
The Social Security Administration (SSA) is required by law to provide Social Security number
(SSN) holders with annual statements that contain certain information from their Social Security
records in accordance with Section 1143 of the Social Security Act, as amended.5 The original
requirement was added as part of the Omnibus Budget Reconciliation Act of 1989 (P.L. 101-239).
The Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508) changed the frequency of the
statements from biennial (every two years) to annual. It also amended the Internal Revenue Code
to allow SSA to access address information from Internal Revenue Service (IRS) tax returns for
purposes of mailing statements (see 26 U.S.C. §6103(m)(7)). The annual statement is now
referred to as the Social Security Statement or the Statement.
Senator Daniel Patrick Moynihan explained the rationale for the Social Security Statement during
a floor statement in January 1989. Several years earlier, Congress had passed the Social Security
Amendments of 1983 (P.L. 98-21) to address the impending insolvency of the Social Security
trust funds. Without the passage of the 1983 amendments or other remedial action, the Social
Security system would have been unable to pay scheduled benefits in full and on time within a
matter of weeks or months. Despite the enactment of the 1983 amendments, which were projected
to restore long-range trust fund solvency, Senator Moynihan noted in early 1989 that a “lack of
public confidence remains the biggest problem facing Social Security. Our fellow citizens do not
trust their Social Security system.”6 Senator Moynihan expressed the view that informing workers
covered by Social Security about their personal earnings records, their Social Security tax
contributions, and their future Social Security benefits in an annual statement would be a way to
“reassure Americans that Social Security will be there for them.”7 Moreover, Senator Moynihan
further reasoned that:
All of us pay into Social Security but rarely, until we become beneficiaries, do we ever
hear from Social Security. We pay our taxes to Federal, State, and local governments and
we hear back from them every year—reminding us to tote up how much we've paid in and
how much we still owe or are due back. We receive monthly statements from our banks
and credit card companies. Yet every month, in every paycheck, we see money withheld
for Social Security, but we hear nary a word from the Social Security Administration.8
The Social Security Act specifies which individuals are eligible to receive Statements and, in
general terms, the information that must be contained in the Statement. Under current law, among
other information, Statements must contain the wages and self-employment income reported to
the SSN holders’ records, estimates of the payroll tax contributions they and their employers have
paid, and estimates of the potential benefits they and their family members may qualify for based
on those earnings.9
Over the years, SSA has made changes to the Statement’s name, content, format, and method of
delivery. The general purpose of the Statement has remained the same: to provide individuals

5 See Section 1143 of the Social Security Act (Social Security Account Statements) at https://www.ssa.gov/OP_Home/
ssact/title11/1143.htm.
6 Senate, Congressional Record, 101st Congress, January 25, 1989, p. S629, https://www.govinfo.gov/app/details/GPO-
CRECB-1989-pt1/GPO-CRECB-1989-pt1-6-1.
7 Ibid.
8 Ibid.
9 See Section 1143 of the Social Security Act, as amended. See also SSA’s Program Operations Manual System,
Section RM 01301.001, at https://secure.ssa.gov/apps10/poms.nsf/lnx/0101301001.
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with (1) an opportunity to verify that their earnings histories in SSA’s records are correct10 and
(2) an explanation and estimate of the potential Social Security benefits payable to the individual
and his or her family members based on those earnings.
Statutory Requirement
Section 1143 of the Social Security Act, as amended, requires SSA to provide a Statement to
eligible individuals, defined as individuals who:
 have an SSN;
 are aged 25 or older; and
 have wages (or net earnings from self-employment) from jobs covered by Social
Security or for whom information in SSA’s records shows a pattern of wages or
self-employment income that indicates a likelihood of noncovered employment.
The act specifies that the Statement must contain the following information:
 The individual’s earnings history as shown in SSA’s records.
 An estimate of the payroll tax contributions paid by the individual and his or her
employer(s) based on earnings in covered employment. Payroll tax contributions
must be broken down by (1) payroll taxes collected for the Social Security
program and (2) payroll taxes collected for the Medicare Hospital Insurance
program (Medicare Part A).11
 An estimate of the potential Social Security benefits payable on the individual’s
earnings record (i.e., benefits payable to the individual and to his or her eligible
family members) and a description of benefits payable under the Medicare
program. With respect to Statements provided to individuals who are younger
than age 50, the Statement does not have to include estimates of monthly
retirement benefits. If estimates of retirement benefits are not included, the
Statement must include a description of the benefits (including benefits for
eligible family members) that are available upon retirement.
 If an individual has noncovered employment, the Statement must include an
explanation in plain language of two provisions of Social Security law that
reduce Social Security benefits for individuals who receive pensions from
noncovered employment: the Windfall Elimination Provision (WEP) and the
Government Pension Offset (GPO). The explanation must include the maximum

10 SSA maintains a record of an individual’s earnings in covered employment, specifically the portion of covered
earnings subject to the Social Security payroll tax (i.e., taxable earnings). An individual’s taxable earnings are used to
determine whether he or she has a sufficient connection to covered employment to be eligible for future benefits. That
is, an individual must have a certain amount of earnings credits (or Quarters of Coverage) to gain insured status under
the program. In addition, an individual’s benefit computation is based on his or her career-average taxable earnings.
Some individuals may have earnings from noncovered employment (i.e., work that is not covered by Social Security).
SSA also maintains a record of an individual’s noncovered earnings (on and after 1978), although noncovered earnings
are not subject to the Social Security payroll tax and are not counted in the Social Security benefit computation.
11 Earnings in covered employment are subject to the FICA tax (paid by employees and their employers) and the SECA
tax (paid by self-employed individuals). A portion of FICA/SECA tax revenues is credited to the Social Security
program, and a portion is credited to the Medicare Hospital Insurance program. FICA stands for the Federal Insurance
Contributions Act. SECA stands for the Self-Employment Contributions Act. For more information, see CRS Report
R42035, Social Security Primer.
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potential effects of the WEP and the GPO on the individual’s Social Security
benefit amounts. (For more information, see Appendix A.)
The act further specifies that SSA must provide annual statements to eligible individuals who are
not receiving Social Security benefits and for whom “a mailing address can be determined
through such methods as the [Social Security] Commissioner determines to be appropriate.”
Under Section 6103(m)(7) of the Internal Revenue Code, SSA is authorized to access address
information from IRS tax returns for purposes of mailing statements. In addition, the act requires
SSA to ensure that eligible individuals are informed about the availability of the Statement.
Section 1143 of the act, as amended, includes a provision indirectly related to the Statement.12
Section 1143(d) (Disclosure to Governmental Employees of Effect of Noncovered Employment)
requires state and local government employers to disclose the effect of the WEP and the GPO to
employees hired on or after January 1, 2005, in positions that are not covered by Social
Security.13 Newly hired employees must sign statements acknowledging that they have received
written notice of the maximum effect of the WEP and the GPO on potential Social Security
benefits as a result of their noncovered employment. That is, they must acknowledge that they are
aware that their noncovered employment may cause a reduction in their future Social Security
benefit entitlement.14
The Current Social Security Statement
Key Points

The Statement includes a person’s earnings history, benefit eligibility and benefit estimates, Social Security and
Medicare payroll taxes paid, and other information.

The Statement can provide an opportunity for individuals to verify their earnings records, help individuals
adjust their expectations of what the program will provide, and inform their financial planning decisions,
including when to claim Social Security benefits.

Under current policy, annual Statements are available online after creating a “my Social Security Account” on
SSA’s web portal. SSA automatically mails paper Statements annually to individuals who (1) are aged 60 or
older, (2) have not yet claimed benefits, and (3) have not created “my Social Security Accounts.” An individual
can also request a mailed paper Statement from SSA.
SSA introduced a new design for the Statement in fall 2021. In an October 4, 2021, press release,
SSA noted that:
The agency conducted extensive research, review, and testing to make the updated
Statement easy to understand. The new Statement is shorter, uses visuals and plain
language, and includes fact sheets tailored to a person’s age and earnings history. It also
includes important information people have come to expect from the Statement, such as
how much a worker and family members could expect to receive in Social Security benefits
and a personalized earnings history, in a clear, concise manner.15
In the press release, SSA highlighted the following elements of the redesigned Statement:

12 The provision was enacted as part of the Social Security Protection Act of 2004 (P.L. 108-203, see Section 419(c)).
13 For more information, see CRS Report R46961, Social Security Coverage of State and Local Government
Employees.
14 For more information, see SSA, “State and Local Government Employers—Information,” https://www.ssa.gov/slge/.
15 SSA, “Social Security Announces Redesigned Statement—Now Available with a ‘My Social Security Account,’”
press release, October 4, 2021, https://www.ssa.gov/news/press/releases/2021/#10-2021-1.
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(1) Benefit eligibility information and estimates right on page one in easy-to-find labeled
boxes.
(2) Personalized retirement benefit estimates right up front for all claiming ages in a color
bar chart.
(3) Earnings record in one column for easier viewing.
(4) Added key points about benefits that are not very clear to the public.16
Purpose of the Statement
The Statement includes an individual’s earnings history year by year as shown in SSA’s records.
It is important for SSA to have a complete and accurate record of an individual’s earnings history
because it is used to determine an individual’s eligibility for Social Security benefits (i.e., his or
her insured status under the program) and the amount of benefits payable to the individual and his
or her family members.17 The annual Statement provides an opportunity for individuals to verify
that their earnings histories in SSA’s records are correct and to notify SSA if there are any
errors.18
The Statement includes information on benefit eligibility for the individual and his or her eligible
family members, as well as estimates of potential Social Security benefits payable to the
individual and his or her eligible family members based on the individual’s earnings history.
Estimates of the individual’s retirement benefits are provided for different claiming ages, ranging
from age 62 to age 70.19 Full Social Security retired-worker benefits are payable at the Social
Security full retirement age (FRA). The FRA is 67 for workers born in 1960 or later. Individuals
can claim Social Security retired-worker benefits as early as age 62, but benefits claimed before
the FRA are typically subject to a permanent reduction for early retirement. Similarly, individuals
can claim Social Security retired-worker benefits after the FRA. Benefits claimed after the FRA
are subject to a permanent increase for delayed retirement. (The increase applies up to age 70.)
The reduction for early retirement and the increase for delayed retirement can have a large impact
on an individual’s monthly benefit payment. For this reason, SSA provides a range of benefit
estimates based on claiming age. The benefit estimates can help individuals adjust their
expectations of what the program will provide and inform their financial planning decisions,
including when to claim Social Security benefits.
The Statement includes other information such as the estimated amount of Social Security and
Medicare payroll taxes that the individual and his or her employer(s) have paid into the system. In
addition, it includes a notification that noncovered employment can result in lower Social
Security benefits and provides a link to information about the WEP and the GPO on SSA’s
website.

16 Ibid.
17 For more information on how Social Security benefits are calculated, see CRS Report R46658, Social Security:
Benefit Calculation.
18 Individuals can request corrections of their earnings records within the time limit for the year in question. Generally,
the time limit is a period of time 3 years, 3 months, and 15 days after any year in which the individual received
earnings.
19 For more information, see CRS In Focus IF11115, Social Security Retirement Benefit Claiming Age.
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The Social Security Statement

Content of the Statement
The Statement is available in two formats: a paper Statement and an online Statement. Both
formats are two pages in length and contain the same information. SSA provides sample
Statements on its website.
 Sample paper Statement: https://www.ssa.gov/myaccount/assets/materials/
statement-redesign-si-bw.pdf.
 Sample online Statement: https://www.ssa.gov/myaccount/assets/materials/
statement-redesign-online.pdf.
The information in the Statement is organized by the following categories:
 Retirement Benefits. The Statement identifies whether the individual has earned
enough credits to qualify for retirement benefits, the individual’s FRA, and the
earliest age at which retirement benefits can be claimed, among other
information.
 Disability Benefits. The Statement identifies whether the individual has earned
enough credits to qualify for disability benefits and provides a monthly disability
benefit estimate.
 Survivors Benefits. The Statement identifies whether the individual has earned
enough credits for eligible family members to qualify for survivors benefits on
his or her record. It provides a monthly benefit estimate for each type of family
member who may qualify for benefits, such as a spouse or a minor child. It also
provides an estimate of the maximum combined monthly benefit payable to all
eligible family members on the individual’s record under a provision called the
“family maximum.” The statement provides generic information regarding
benefits for family members rather than customized benefit estimates.
 Personalized Monthly Retirement Benefit Estimates for Different Claiming
Ages. The Statement includes a bar chart that shows the individual’s estimated
benefit if claimed at each age from age 62 to age 70.
 Medicare. The Statement identifies whether the individual has enough credits to
qualify for Medicare at age 65. It provides a brief explanation about the program
and identifies where to go for more information.
 Earnings Record. The Statement shows the individual’s annual earnings in two
columns: (1) earnings taxed for Social Security purposes and (2) earnings taxed
for Medicare purposes.20 It explains the importance of reviewing the earnings
history for accuracy and provides information on how to contact SSA if there is
an error.
 Taxes Paid. The Statement shows separate estimated cumulative totals for (1)
Social Security payroll taxes paid by the individual and by his or her employer(s)

20 The Social Security payroll tax applies to earnings in covered employment up to an annual limit (called the taxable
maximum). The taxable maximum is adjusted based on average wage growth in the economy in years when a Social
Security COLA is payable. The Medicare payroll tax applies to all earnings in covered employment. Therefore, the two
earnings amounts may differ. Additionally, the earnings of individuals who work in noncovered employment (such as
some state and local government employees) are not subject to the Social Security payroll tax. However, the earnings
of these individuals generally are subject to the Medicare payroll tax. For related information, see CRS Report R46961,
Social Security Coverage of State and Local Government Employees.
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and (2) Medicare payroll taxes paid by the individual and by his or her
employer(s).
 Earnings Not Covered by Social Security. The Statement advises the individual
that participation in a retirement plan or receipt of a pension based on earnings
for which he or she did not pay Social Security payroll taxes could result in lower
Social Security benefits. The Statement provides a link to related information
about the WEP and the GPO on SSA’s website.
 Important Things to Know About Your Social Security Benefits. The Statement
highlights selected information about the program, such as the availability of
benefits for divorced spouses.
In addition to the two-page Statement, SSA provides supplemental fact sheets “designed to
provide clarity and useful information, based on [the individual’s] age group and earnings
situation.” The targeted fact sheets include the following items available on SSA’s website at
https://www.ssa.gov/myaccount/statement.html. Relevant fact sheets are also included with
mailed paper Statements.
 Retirement Ready (Fact Sheet for Workers Ages 18-48)
 Retirement Ready (Fact Sheet for Workers Ages 49-60)
 Retirement Ready (Fact Sheet for Workers Ages 61-69)
 Retirement Ready (Fact Sheet for Workers Ages 70 and Up)
 Social Security Basics for New Workers
 How You Become Eligible for Benefits
 Additional Work Can Increase Your Future Benefits
 You Have Earnings Not Covered by Social Security
 Medicare Ready
A sample paper Social Security Statement is shown in Appendix B.
Method of Delivery
SSA’s policy regarding the method of delivery of the Statement has changed over the years.
Under current policy, annual Statements are available online for individuals who create “my
Social Security Accounts” on SSA’s web portal. SSA sends an email each year to “my Social
Security Account” holders reminding them to check their annual Statements online. SSA
automatically mails paper Statements annually to any individual who (1) is aged 60 or older, (2)
has not yet claimed benefits, and (3) has not created a “my Social Security Account.” A Statement
is mailed three months before an individual’s birthday. Individuals can also request mailed paper
Statements at any time.
To create a “my Social Security Account,” an individual must be aged 18 or older and have a
valid SSN, a U.S. mailing address (or a military address if deployed overseas), and an email
address.21 SSA uses an identity verification process designed to protect the personal information
of account users, as explained in “The Online Identity Verification Process” at
https://www.ssa.gov/myaccount/security.html.

21 To create a “my Social Security Account,” go to https://www.ssa.gov/myaccount/statement.html. Select the “Create
your account” button.
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Delivery of the Statement: Current Policy as of January 2017

Automatic Mailing of Paper Statements: SSA automatically mails Statements annually to an individual who is aged
60 or older, is not receiving Social Security benefits, and has not created a “my Social Security Account.”

Mailing of Paper Statements Upon Request: Individuals may request mailed paper Statements at any time.

Access to Online Statements: An individual who is aged 18 or older and has a valid SSN, a U.S. mailing address
(or a military address if deployed overseas), and an email address can create a “my Social Security Account”
to access his or her Statement online (and other services).
Background and History
Before 1989
Earnings records have been available for workers to review and initiate corrections since 1939.
The Social Security Act Amendments of 1939 included a requirement that the Social Security
Board (precursor to SSA) must establish and maintain records of the amounts of wages paid to
each individual and make them available upon request.22
Over time, interest grew among policymakers in providing workers with information about their
Social Security benefits. For example, in its 1981 report, the National Commission on Social
Security, appointed by President Carter pursuant to the 1977 Social Security Amendments,
recommended that SSA provide Social Security benefit illustrations to workers who requested
them.23 In 1988, Senator Moynihan introduced bills to require the Secretary of Health and Human
Services to provide personal earnings and benefit statements, upon request, to eligible individuals
covered by Social Security.24 Eligible individuals would have been those who had SSNs, had
wages or self-employment earnings, and had attained age 25 by October 1, 1989. The bill would
also have made the Statement mandatory for those who had attained age 60 by October 1, 1991,
and at least once every three years by October 1, 2000, if the mailing address could be
determined.
From the 1960s to the early 1980s, SSA considered, and in some cases implemented, programs to
provide more information to workers about their earnings, payroll taxes paid, and estimated
benefits.25 In 1988, SSA began providing the Personal Earnings and Benefit Estimate Statement
(PEBES) on request. The PEBES provided information on (1) a worker’s earnings history; (2) the
amount of Social Security taxes paid; (3) estimates of benefits received at age 62 (the early
eligibility age), the FRA (ranging from 65 to 67 depending on birth year), and age 70 (the
maximum age to receive delayed retirement credits); (4) estimates of disability and survivors
benefits; and (5) descriptions of maximum earnings subject to Social Security payroll taxes,

22 P.L. 379-76. On October 8, 1940, the Social Security Board established regulations governing, among other things,
the revision of wage records. See SSA, “Special Collections: Chronology 1940s,” https://www.ssa.gov/history/
1940.html. To increase the accuracy of the earnings data, policymakers over the years also proposed to provide annual
statements to eligible workers about their earnings records and Social Security taxes paid into the system, among other
information (e.g., the Social Security Fair Reporting Act of 1979 [S. 908]).
23 National Commission on Social Security, Social Security in America’s Future, Final Report, March 1981, p. 312,
https://www.ssa.gov/history/reports/80commission.html.
24 See S. 2441 and S. 2684 in the 100th Congress. At that time, SSA was an agency within the Department of Health
and Human Services (HHS). SSA became an independent agency on March 31, 1995 (P.L. 103-296).
25 For more information, see Barbara A. Smith and Kenneth A. Couch, “The Social Security Statement: Background,
Implementation, and Recent Developments,” Social Security Bulletin, vol. 74, no. 2 (2014).
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Social Security payroll tax rates, Social Security earnings credits (used to determine eligibility),
credits for military and railroad workers, and how benefit estimates were calculated.26
1989-2010
The Omnibus Budget and Reconciliation Act of 1989 amended the Social Security Act to require
SSA to provide Statements to eligible individuals according to a set schedule and to inform
eligible individuals about the availability of the Statement.27 The legislation specified these
Statements must contain the worker’s earnings history; estimated Social Security and Medicare
taxes paid; estimates of potential retirement, disability, survivors, and other auxiliary benefits
payable based on the eligible individual’s record; and a description of benefits payable under
Medicare. Eligible individuals were those 25 years old or older with SSNs and wages or self-
employment earnings. The schedule was set as:
1. Beginning no later than October 1, 1990, Statements would be sent on request to
eligible individuals.
2. By no later than September 30, 1995, a Statement would be sent to each eligible
individual who had attained age 60 by October 1, 1994; who was not receiving
benefits under Social Security; and for whom a current mailing address could be
determined. For FY1995-FY1999, a Statement would be sent to each eligible
individual meeting those criteria and attaining age 60 during that period.
3. Beginning no later than October 1, 1999, Statements would be provided on a
biennial basis to any eligible individual who had attained age 25, who was not
receiving Social Security benefits, and for whom a mailing address could be
determined. For individuals younger than age 50, a general description of
benefits, but no actual benefit estimates, would be required.
The content in the Statement required by the legislation appeared to be the same as the PEBES
that SSA had made available to individuals upon request since 1988. SSA redesigned the form
and renamed it the Social Security Statement in October 1999. SSA also modified several
specifications in addition to those required under the legislation. For example, SSA provided
projected benefit estimates to all eligible workers including those younger than age 50. The
agency also modified the mailing schedule, thus the Statement being sent to an increasingly
younger age group during FY1996-FY1999.
For FY1989-FY1994, SSA sent the PEBES only on request and received about 3.5 million
requests per year. SSA began automatic issuance of the PEBES in FY1995 to specific age groups
based on the schedule in Table 1.28 SSA received the same request volume (about 3.5 million per
year) through FY2000, when it began sending the Social Security Statement to all workers aged
25 or older.

26 Ibid.
27 P.L. 101-239.
28 In March 1997, after pretesting with a small number of users, SSA began national testing of its online PEBES.
Within days, news media and Members of Congress expressed concerns about privacy risks. On April 9, 1997, SSA
announced that it was suspending its online PEBES to get advice on how to provide this service while protecting the
privacy of personal data. The number shown in Table 1 does not include the number of Statements viewed online. For
more information, see Barbara A. Smith and Kenneth A. Couch, “The Social Security Statement: Background,
Implementation, and Recent Developments,” Social Security Bulletin, vol. 74, no. 2 (2014); and U.S. General
Accounting Office (now the Government Accountability Office), Social Security Administration: Internet Access to
Personal Earnings and Benefits Information, testimony before House Committee on Ways and Means Subcommittee
on Social Security, GAO/T-AIMD/HEHS-97-123, May 6, 1997.
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Table 1. Automatic Mailings of the Social Security Statement, FY1995-FY2002
Fiscal Year
Number of Statements Issued
Recipient Ages
1995
7.0 million
60 or older
1996
5.5 million
58-60
1997
12.4 million
53-58
1998
20.7 million
47-53
1999
26.6 million
40-47
2000
134.7 million
25 or older
2001
135.6 million
25 or older
2002
137.9 million
25 or older
Source: Barbara A. Smith and Kenneth A. Couch, “The Social Security Statement: Background, Implementation,
and Recent Developments,” Social Security Bulletin, vol. 74, no. 2 (2014).
Notes: The Social Security Statement was named the Personal Earnings and Benefit Estimate Statement (PEBES)
before October 1999.
SSA staggered the mailing of the Statement throughout the year. In FY2010, SSA sent over 155
million Statements to individuals aged 25 or older who were not receiving Social Security
benefits and for whom SSA could determine mailing addresses.29 Preparing and mailing the
Statements cost about $70 million per year during FY2000-FY2010.30
After 2010
Due to budget constraints, SSA suspended the automatic mailing of Statements in March 2011.
The conference report accompanying the Consolidated Appropriations Act of 2012 (P.L. 112-74)
required SSA to examine the options for continuing to provide the annual Social Security
Statement to the American public.31 Later on, SSA issued annual Statements using two methods—
mailing paper Statements to some individuals and making an online version of the Statement
available to all individuals.
On February 15, 2012, SSA resumed mailing paper Statements to about 11.4 million individuals
aged 60 or older who were not already receiving Social Security benefits. Then, on July 23, 2012,
SSA resumed first-time mailings to about 1 million individuals aged 25. However, on October 1,
2012, in response to an increasingly difficult budget situation, SSA suspended all Statement
mailings, including on-request mailings.32
In the meantime, SSA launched a secure online version of the Statement on May 1, 2012, through
the “my Social Security Account.”33 The online Statement was available to people aged 18 or

29 SSA, Office of the Inspector General, Congressional Response Report: Issuance of Social Security Statements, A-03-
18-50724, February 2019.
30 SSA, Social Security Statement Review, A Report to Congress, 2012, https://www.ssa.gov/legislation/
SocialSecurityStatementReview2012.pdf.
31 U.S. Congress, House of Representatives, Conference Report to Accompany H.R. 2055, 112th Congress, 1st Session,
Report 112-331, December 15, 2011, https://www.congress.gov/112/crpt/hrpt331/CRPT-112hrpt331.pdf.
32 SSA, Fiscal Year 2012 Performance and Accountability Report, November 2012, and Barbara A. Smith and Kenneth
A. Couch, “The Social Security Statement: Background, Implementation, and Recent Developments,” Social Security
Bulletin, vol. 74, no. 2 (2014).
33 SSA, “Social Security Statement Now Available Online at www.socialsecurity.gov,” press release, May 1, 2012,
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older and provided access to earnings records, benefit estimates, and related information.34
Included in the online version of the Statement was an authentication process to prevent
unauthorized access to workers’ personal information. An individual unable to access information
online could go into a local Social Security office to create a “my Social Security Account” and
establish authentication credentials in person with the assistance of SSA staff. Alternatively, an
individual could request a paper Statement.35 In July 2013, SSA resumed on-request mailings
(which were suspended on October 1, 2012) to those individuals who failed the electronic
authentication process required to access the online Statement.36
A Joint Explanatory Statement to the Consolidated Appropriations Act of 2014 (P.L. 113-76)
directed SSA to
develop a plan to significantly increase the number of individuals receiving Social Security
Statements annually, either electronically or by mail. This should include a significant
restoration of the mailing of statements to ensure that individuals are informed of their
contributions and benefits under Social Security programs and have an opportunity to
review their earnings records and correct any errors in a timely manner. The Commissioner
or her designee is directed to brief the House and Senate Appropriations Committees within
60 days of enactment of this act on this plan, including the intended plan for mailing
statements in fiscal year 2014.37
In 2014, SSA began mailing paper Statements automatically to individuals aged 25, 30, 35, 40,
45, 50, 55, and 60 or older who did not have online accounts (“my Social Security Accounts”) to
access their Social Security Statements.38 In January 2017, SSA restricted the automatic mailing
of paper Statements to only individuals who are aged 60 or older, are not receiving benefits, and
have not created “my Social Security Accounts.”39 For all other individuals, SSA mails a paper
Statement only on request. The change made in 2017 remains the current policy.40
Table 2 shows the number of Statements that were mailed and the number of users who accessed
online Statements from FY2011 to FY2018.

https://www.ssa.gov/news/press/releases/2012/#5-2012-1.
34 SSA, Fiscal Year 2012 Performance and Accountability Report, November 2012.
35 Ibid.
36 The authentication process is included in the online version of the Statement to prevent unauthorized access to
workers’ personal information. See SSA, Social Security Statement Review, A Report to Congress, 2012,
https://www.ssa.gov/legislation/SocialSecurityStatementReview2012.pdf.
37 U.S. Congress, House of Representatives, Explanatory Statement Submitted by Mr. Rogers of Kentucky, Chairman of
the House Committee on Appropriations Regarding the House Amendment to the Senate Amendment on H.R. 3547,
Consolidated Appropriations Act, 2014, 113th Congress, 2nd Session, Congressional Record, vol. 160, no. 9 (January
15, 2014), https://www.congress.gov/113/crec/2014/01/15/160/9/CREC-2014-01-15-pt2-PgH475-2.pdf.
38 SSA, “Agency Resumes Mailing Social Security Statements Encourages People to Create a Secure my Social
Security Account to Obtain Their Statement Online, Anytime,” press release, September 16, 2014,
https://www.ssa.gov/news/press/releases/2014/#9-2014-1. See also SSA, Plan to Increase the Number of Individuals
Annually Receiving Social Security Statements, March 20, 2014, https://www.ssa.gov/legislation/
Social%20Security%20Statement%20Plan.pdf.
39 SSA, Justification of Estimates for Appropriations Committees, Fiscal Year 2018, “Budget Overview,” May 2017, p.
5, https://www.ssa.gov/budget/FY18Files/2018JEAC.pdf. See also Barbara A. Smith, “Can Informational Interventions
Be Effective Policy Tools? An Initial Assessment of the Social Security Statement,” Social Security Bulletin, vol. 80,
no. 4 (November 2020), https://www.ssa.gov/policy/docs/ssb/v80n4/v80n4p1.html.
40 SSA, “Frequently Asked Questions: How Can I Get a Social Security Statement?,” January 25, 2022,
https://faq.ssa.gov/en-US/Topic/article/KA-01741.
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Table 2. Number of Social Security Statements Mailed and Number of Users
Accessing Online Statements via “my Social Security Account”
FY2011-FY2018

Statements Mailed
Online Statements
Users Who
Users Who
Registered “my
Accessed
Social Security
Online
Fiscal Year
Automatic
On-Request
Total
Account”
Statements
2011
74,427,249
268,060
74,695,309
—
—
2012
21,728,005
15,406
21,743,411
2,023,011
1,945,890
2013
—
7,608
7,608
8,352,201
7,135,204
2014
3,868,569
74,293
3,942,862
14,490,379
10,062,404
2015
49,577,044
515,026
50,092,070
21,139,321
12,776,556
2016
46,728,830
384,746
47,113,576
26,941,287
14,279,536
2017
13,285,401
115,617
13,401,018
32,655,922
15,654,742
2018
14,428,893
139,239
14,568,132
38,812,938
16,849,165
Source: SSA, Office of the Inspector General, Congressional Response Report: Issuance of Social Security Statements,
A-03-18-50724, February 2019, Tables 1 and 2.
Notes: Automatic Statements were mailed to individuals based on SSA’s criteria. An on-request Statement was
mailed when an individual completed a Form SSA-7004-SM-OP1 or a similar form through SSA’s website. A
person might receive a paper Statement and also access the online Statement.
In FY2021, SSA spent approximately $6.7 million to mail Statements to people aged 60 or older
who were not receiving Social Security benefits and who were not registered for “my Social
Security Accounts.”41 SSA projects a cost of approximately $8.7 million in FY2022 and $9.1
million in FY2023.42 In 2021, SSA projected that it would have cost an additional $81 million in
FY2022 if the Statement were sent to individuals aged 25 or older who were not receiving Social
Security benefits.43
The Impact of the Statement
Key Research Findings
A range of studies have analyzed the role the Statement plays in SSA’s communication with potential beneficiaries.

Research studies have found that receipt of the Statement may increase some types of knowledge about the
Social Security program.

Some researchers suggest that the information provided in the Statement may influence an individual’s
decision on when to claim retired-worker benefits and to apply for disabled-worker benefits, while others
find no measurable effect.

Researchers find mixed impacts of the Statement on workers’ employment decisions and few measurable
impacts of the Statement on retirement savings.

41 SSA, Justification of Estimates for Appropriations Committees, Fiscal Year 2023, “Budget Overview,” April 2022,
p. 11, https://www.ssa.gov/budget/FY23Files/FY23-JEAC.pdf.
42 Ibid.
43 SSA, Justification of Estimates for Appropriations Committees, Fiscal Year 2022, “Budget Overview,” May 2021, p.
12, https://www.ssa.gov/budget/FY22Files/FY22-JEAC.pdf.
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Knowledge of the Social Security Program
Research has analyzed whether providing the Statement could increase knowledge of the Social
Security program, ranging from program features such as the FRA to potential benefit amounts.
Studies have found that receipt of the Statement may increase some types of knowledge about the
Social Security program but not all.
One study used data from surveys commissioned by SSA to analyze the effect of the Statement on
Social Security knowledge among younger workers.44 The authors found that younger workers
were generally knowledgeable about the Social Security program before receiving a Statement
and were significantly more knowledgeable after receipt. However, even after receipt of the
Statement, about 70% of respondents knew that the FRA was going to rise,45 and less than 50%
knew that benefits were inflation-indexed.46 Therefore, the researchers suggested that SSA
outreach efforts should provide more details on benefits and related factors.
Some other studies used data from the Health and Retirement Study (HRS) to study how the
receipt of one’s first Statement affected estimation of future Social Security retirement benefits.
The HRS includes questions about expected retirement age and expected Social Security benefits
(for workers) and actual retirement age and benefit levels (for retirees). One of the studies used
the 1994-2008 survey waves to measure the accuracy of the estimated benefits when compared
with realized benefits before and after the 1995 implementation of the Statement. The author
found that the initial mailings of the Statement did not result in more accurate estimations of
retirement benefit levels.47 The other study used the 1992-2000 waves and found that older
workers who had not previously contacted SSA about their benefits were 20 percentage points
more likely to be able to estimate their future retirement benefits if they had received Statements
than if they had not.48
Researchers have also analyzed the effect of the Statement on expectations of Social Security
benefit receipt—whether an individual expects ever to receive benefits based on their work years,
occupation, longevity, Social Security financing, and other factors. For example, one study
examined how the reintroduction of Social Security Statement mailings from September 2014
through December 2016 affected individuals’ expectations about Social Security benefits by using
a specialized survey that followed up on previous surveys about respondents’ Social Security
knowledge.49 The author found that recipients of the Social Security Statement were more likely
than nonrecipients to expect any Social Security benefits. The effect is stronger for respondents
who had less knowledge about Social Security before the Statement’s reintroduction. And the
estimated effect diminished quickly: Results were strongest among those who received

44 Barbara A. Smith and Kenneth A. Couch, “How Effective Is the Social Security Statement? Informing Younger
Workers About Social Security,” Social Security Bulletin, vol. 74, no. 4 (2014), pp. 1-19.
45 The FRA under Social Security is rising from 65 to 67 based on the birth year. For more information, see CRS
Report R44670, The Social Security Retirement Age.
46 Social Security benefits generally increase by the COLAs. For more information, see CRS Report 94-803, Social
Security: Cost-of-Living Adjustments.
47 Andrew G. Biggs, Improving the Social Security Statement, Santa Monica, CA: RAND Corporation, Financial
Literacy Center Working Paper No. WR-794-SSA, 2010.
48 Giovanni Mastrobuoni, “The Role of Information for Retirement Behavior: Evidence Based on the Stepwise
Introduction of the Social Security Statement,” Journal of Public Economics, vol. 95, no. 7-8 (2011), pp. 913-925. The
study also analyzes how receipt of the Statement likely affects the retirement behavior of workers aged 55-70. Similar
results can also be found in Giovanni Mastrobuoni, Do Social Security Statements Affect Knowledge and Behavior?
Center for Retirement Research at Boston College, Number 11-6, April 2011.
49 Philip Armour, “How Did the Reintroduction of the Social Security Statement Change Workers’ Expectations and
Plans?,” Social Security Bulletin, vol. 80, no. 4 (2020), pp. 23-38.
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Statements in the past year, but they were reduced to almost zero for those who received
Statements two or more years prior.
Behavior of Workers
Research also analyzes how the Statement may affect individuals’ behavior in Social Security
retirement benefit claiming and disability insurance application, employment, and retirement
savings.
Social Security Retirement Benefit Claiming
Research has analyzed the effect of the Statement on individuals’ decision on Social Security
claiming. Researchers have found mixed results on this effect.
Some research finds no noticeable impact of the Statement on workers’ claiming behavior. For
example, one study used the HRS data and found that the information provided in the Statement
was not sufficient to change workers’ claiming patterns.50
Some other recent research, however, suggests that the information provided in the Statement
may influence workers’ decisions on Social Security claiming. One 2020 study used SSA’s
administrative data and suggested that the receipt of the Statement had a significant effect on the
age at which workers claim retirement benefits. In particular, the study found that the receipt of
two or more Statements likely reduced Social Security claiming at age 62 (the earliest eligibility
age for retired-worker benefits) and that receipt of one or more Statements likely increased Social
Security claiming at ages 64 and 65.51 In another study, the author found that the reintroduction of
Statement mailings from September 2014 through December 2016 likely affected recipients’
expected Social Security claiming age. The study also found that the change in expected claiming
age was not in a single direction—roughly similar proportions increased and decreased their
expected claiming age after receiving the Statement, thus resulting in zero net effect.52
Social Security Disability Insurance Application
Social Security Disability Insurance (SSDI) is part of the Social Security program. The program’s
disability insurance component provides cash benefits to nonelderly insured workers who
experience severe, work-limiting disabilities and to their eligible spouses and children. To qualify
for SSDI, workers must (1) be below Social Security’s FRA, (2) be insured in the event of
disability, and (3) meet the statutory definition of disability.53
The Social Security Statement includes the benefit estimate for disability benefits, which is the
amount available to a disabled worker at the time of Statement receipt and may be relevant to an
immediate SSDI applicant. Research that analyzes the impact of the Statement on SSDI
applications is limited. One study exploited the phased-in introduction of the Social Security
Statement between 1995 and 1999 to estimate how SSDI application decisions changed after the

50 Mastrobuoni, “The Role of Information for Retirement Behavior: Evidence Based on the Stepwise Introduction of
the Social Security Statement.”
51 Smith, “Can Informational Interventions Be Effective Policy Tools? An Initial Assessment of the Social Security
Statement.”
52 Philip Armour, “How Did the Reintroduction of the Social Security Statement Change Workers’ Expectations and
Plans?.”
53 See CRS In Focus IF10506, Social Security Disability Insurance (SSDI).
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receipt of the Statement. The author found that the Statement substantially increased the
likelihood of DI application among older workers with prior work-limiting health conditions and
estimated that about 18% of the growth in the DI program from 1992 to 2004 could be attributed
to the Statement. The study also pointed out that the effect of information intervention was highly
dependent on the population and type of information conveyed. Because the population with
work-limiting health conditions was relatively small compared to the overall Social Security
population, the overall effect of the Statement on DI behavior was negligible.54
Labor Supply Among Older Workers
In addition to Social Security claiming, researchers are also interested in how the Social Security
Statement may affect individuals’ labor supply decisions—whether to work and how many hours
to work. The impact of the Statement on these decisions also appears to be mixed.
Some studies suggest that receipt of the Statement encourages older individuals to work more. In
one study, researchers conducted a randomized field experiment that provided information on
Social Security (not duplicative of the information in the Statement) to 2,500 workers aged 60-65
and examined the effect of several aspects of informational intervention—informational mailing,
online tutorials, specific information about Social Security, and vignettes—on employment. The
study found that individuals who received the informational intervention were 4.2 percentage
points more likely to work one year later.55 In another study, the researcher uses SSA’s
administrative data and suggests that the receipt of the Statement increases the likelihood of
employment by five to seven percentage points at each age between ages 62 and 70.56
Other researchers find that some workers reduce hours worked after receiving the Statement. One
study estimated the effect of the receipt of Statements on hours worked for males born between
1932 and 1947 using the data from the HRS.57 The authors found that receiving the Statement
reduced annual hours worked by 119 hours on average, with notable differences among
workers—those who were not working or who worked few hours tended to increase their labor
supply, while those who were working full-time prior to the Statement receipt tended to decrease
their labor supply. The study also investigated the underlying reasons for these effects and found
that the worker’s knowledge of Social Security before receipt of the Statement might play a role:
Workers whose prior Social Security expectations understated their benefit levels projected in the
Statements decreased hours worked, while workers who had little knowledge of their benefits or
overstated them increased hours worked. Additionally, the authors found that receipt of the
second Statement induced workers approaching retirement who reduced their hours worked over
time to increase hours worked or to slow their reductions in labor supply. This finding regarding
the second Statement confirmed the author’s hypothesis that some workers might misinterpret the
information they received from the initial Statement, thus causing them to reduce labor supply by

54 Philip Armour, “The Role of Information in Disability Insurance Application: An Analysis of the Social Security
Statement Phase-In,” American Economic Journal: Economic Policy, vol. 10, no. 3 (2018), pp. 1-41.
55 Jeffrey B. Liebman and Erzo F.P. Luttmer, “Would People Behave Differently If They Better Understood Social
Security? Evidence from a Field Experiment,” American Economic Journal: Economic Policy, vol. 7, no. 1 (2015), pp.
275-299.
56 Smith, “Can Informational Interventions Be Effective Policy Tools? An Initial Assessment of the Social Security
Statement.” The study also analyzes how receipt of the Statement likely affects the Social Security benefit claiming
age.
57 Philip Armour and Michael F. Lovenheim, The Effect of Social Security Information on the Labor Supply and
Savings of Older Americans, Michigan Retirement Research Center, Working Paper 2017-361, September 2016.
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more than if they had had full knowledge about how changing earnings would affect future
benefits.
In another study, the author examined how the reintroduction of the Social Security Statement in
2014 affected individuals’ labor supply decisions and found diverse effects across the working
population. The estimates showed that, after receipt of the Statement, people who were not
working in 2013 and 2014 were substantially more likely to work and people younger than age 50
tended to work more hours, while those working more than 40 hours per week decreased their
labor supply.58
Retirement Savings
Researchers are also interested in the question of whether personalized, salient information on
future retirement benefits affects current retirement savings, such as in a 401(k)-type plan.59
While a series of behavioral economics studies has analyzed the effect,60 limited research has
explored the effect of the mailing of Social Security Statements on retirement savings. Social
Security and retirement savings are two separate systems that provide income sources during
retirement. Research linking Social Security and retirement savings tries to analyze whether an
individual’s expected Social Security benefit (as projected in the Statement) can provide insight
about how much, if any, the individual needs to save for retirement. This insight could change
individuals’ behavior with respect to retirement savings during their working years.
One study described findings from an SSA-commissioned survey between 1998 and 2004 to
determine public knowledge of the program and how people used the Statement. The results
showed that between 40% and 65% of respondents indicated a preference for increasing their
retirement savings, and workers in their 30s and 40s, who had more time to adjust their retirement
planning, were more likely than older respondents to report this retirement savings preference.61
The survey, however, could not show whether or not people actually changed their retirement
savings behavior.
Research also tries to examine whether receipt of the Statement can encourage individuals to
increase retirement savings. One study separately identified the removal and reimplementation of
the Social Security Statement from 2011 to 2014 to analyze the effect of the Statement on public-
sector workers’ retirement savings in the Thrift Savings Plan, a 401(k)-type plan for most federal
government employees. The authors found few measurable impacts of the Statement on
retirement savings.62 In another study, the author examined the reintroduction of the Social

58 Philip Armour, The Reintroduction of the Social Security Statement and Its Effect on Social Security Expectations,
Retirement Savings, and Labor Supply across the Age Distribution, Michigan Retirement Research Center, Working
Paper 2017-373, September 2017.
59 See CRS Insight IN11721, Data on Retirement Contributions to Defined Contribution (DC) Plans.
60 See CRS Report R46441, Saving for Retirement: Household Decisionmaking and Policy Options. Behavioral
research suggests that people tend to have biases in rather predictable patterns. Some see such research as suggesting
the human brain has evolved too quickly to make judgments in bounded, rational ways, using heuristics—or mental
shortcuts—to make decisions. These heuristics generally help people make appropriate decisions quickly and easily,
but they can sometimes result in choices that make the decisionmaker worse off financially. For example, the number,
order, and structure of options, as well as the process around the choice, can change decisions for many people.
61 Barbara A. Smith, “The Social Security Statement: Its Contribution to Retirement Planning,” Journal of Financial
Counseling and Planning, vol. 26, no. 2 (2015), pp. 118-128.
62 Susan Payne Carter and William Skimmyhorn, “Can Information Change Personal Retirement Savings? Evidence
from Social Security Benefits Statement Mailings,” American Economic Association Papers and Proceedings, vol. 108
(2018), pp. 93-97.
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Security Statement in 2014, in which Statements were mailed to staggered groups of individuals
by every fifth birth year (i.e, Statements were mailed to individuals aged 25, 30, 35, and so on).
The author found no significant effect of the Statement on respondents’ retirement savings
behavior.63
Policy Issues
Key Issues
This section discusses several policy issues related to potential ways to improve the Statement, thus providing
individuals more comprehensive and accurate information to prepare for retirement.

The retirement benefit estimation method could be improved to provide more accurate benefit estimates for
younger workers, women, lower earners, and those with zero earnings in the two years prior to receipt of
the Statement.

The Statement could be modified to include some additional information, such as benefits for spouses and
survivors; benefit adjustments for those with earnings not covered under Social Security; an accrued benefit
illustration (i.e., an estimate of the worker’s benefit based on his or her earnings to date, assuming no future
earnings); and other retirement plan information (i.e., information on other potential vested retirement plan
benefits).

The latest version of the Statement (which became available in fall 2021) addressed many design issues. SSA
has expressed its intention to gather feedback from the public.

Analysis has shown several concerns regarding the shift from mailed paper Statements toward online
Statements accessible through online accounts (“my Social Security Accounts”). Strategies to expand
distribution of the paper Statement and increase access to the online Statement could be explored.
Method of Retirement Benefit Estimation
One of the goals of the Statement is to inform workers about their Social Security benefits. At the
time the Statement is prepared, a worker’s complete lifetime earnings are generally unknown.
SSA estimates the person’s future potential benefits by using the worker’s historical earnings to
project future earnings until retirement.64 SSA uses the worker’s past earnings (wage-indexed to
the year two years prior to Statement receipt) to project future earnings by assuming that the
worker continues to earn the same amount as in the year prior to the year of Statement receipt. If
there were no earnings in the prior year, then SSA assumes that future earnings are the same as
the earnings in the year two years prior to the year of Statement receipt. If there were no earnings
in both of the two years prior to the year of Statement receipt, then SSA assumes no future
earnings.
Previous studies have evaluated the accuracy of the current method SSA uses to estimate
retirement benefits for purposes of the Statement. One 2008 study from SSA used the Modeling
Income in the Near Term (MINT) microsimulation model to assess the accuracy of the
Statement’s estimation methodology.65 The authors found that the accuracy of benefit estimates
increased with the recipient’s age. They also found that the estimates were less accurate for

63 Philip Armour, The Reintroduction of the Social Security Statement and Its Effect on Social Security Expectations,
Retirement Savings, and Labor Supply across the Age Distribution, Michigan Retirement Research Center, Working
Paper WP 2017-373, September 2017.
64 For information about the Social Security benefit calculation, see CRS Report R46658, Social Security: Benefit
Calculation.
65 Glenn R. Springstead, David A. Weaver, and Jason J. Fichtner, Estimated Retirement Benefits in the Social Security
Statement, SSA, Research and Statistics Note No. 2008-05, 2008.
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younger workers, women, lower earners, and those with zero earnings in the two years prior to
receipt of the Statement.
In a 2009 report, the Social Security Advisory Board (SSAB) found similar results for the benefit
estimate as the 2008 SSA study and recommended that SSA “consider experimenting with and
evaluating alternative assumptions and projection methods, including those used by the Office of
the Chief Actuary in projecting future benefits for the Trustees Report.”66 The objective is to
improve the retired-worker benefit estimates particularly for younger workers, women, and lower
wage workers.
A 2020 study from SSA’s Office of Retirement and Disability Policy compares the accuracy of
the current Statement estimation method and potential alternative methods of projecting earnings
and benefits.67 These alternative methods include looking back more than two years in the
earnings record, assuming no future earnings, using scaled-worker earnings profiles (as estimated
by the Office of the Chief Actuary),68 using machine-learning computer models, or using
regression models. The study found that the current estimation method used for purposes of the
Statement performs as well as or better than any of the other methods tested.
Research has also tried to understand whether, in addition to past earnings, the characteristics of
workers would help in estimating future earnings. For example, one study used the Survey of
Income and Program Participation (SIPP) data linked to longitudinal tax records to determine
which of several variables can best predict 20-year long-term earnings for a sample of workers
aged 25-45 in 1990. The authors found that short-term earnings (one year of cross-sectional
earnings measured in 1990) could provide a better prediction of workers’ subsequent 20-year
cumulative earnings than their demographics, educational attainment, and occupation could.69
In addition to the benefit estimate in the Statement, a person can take advantage of the online
retirement calculator in the “my Social Security Account.” Using the calculator, one can change
assumptions about future earnings (e.g., including years with zero earnings) to see the impact on
retirement benefits.
Content of the Statement
This section discusses additional information that policymakers and researchers have
recommended for inclusion in the Statement, such as benefits for spouses and survivors; benefit
adjustments for those with earnings not covered under Social Security; an accrued benefit
illustration (i.e., an estimate of the worker’s benefit based on his or her earnings to date, assuming
no future earnings); and other retirement plan information (e.g., information on other potential
vested retirement plan benefits).70 These types of information are considered to be helpful for all
workers or workers of a particular type. When evaluating what additional information would be
beneficial to include in the Statement, as a practical matter, policymakers might also consider

66 Social Security Advisory Board (SSAB), The Social Security Statement: How It Can Be Improved, August 2009.
67 SSA, Analysis of Benefit Estimates Shown in the Social Security Statement, Briefing Paper No. 2020-01, October
2020.
68 For more information, see SSA, OCACT, Scaled Factors for Hypothetical Earnings Examples Under the 2022
Trustees Report Assumptions, June 2022, https://www.ssa.gov/oact/NOTES/ran3/an2022-3.pdf.
69 ChangHwan Kim, Christopher R. Tamborini, and Arthur Sakamoto, “The Sources of Life Chances: Does Education,
Class Category, Occupation, or Short-Term Earnings Predict 20-Year Long-Term Earnings?,” Sociological Science,
vol. 5 (2018), pp. 206-233.
70 Proposals also suggest adding other information to the Social Security Statement. For example, S. 3675 (117th
Congress), among other provisions, would include Medicare enrollment information in the Statement for those between
ages 60 and 65.
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how to incorporate additional information and provide a clear explanation of the information
within the limited space of the Statement. If additional information were provided in paper inserts
included with Statement, a further consideration would be the additional costs associated with
printing and mailing the Statements.
Benefits for Spouses and Survivors
Social Security auxiliary benefits can be payable to the spouse, former spouse, and surviving
spouse of a Social Security–covered worker and are equal to a specified percentage of the
worker’s basic monthly benefit amount (subject to a maximum family benefit amount). For
example, the spouse of a retired worker may receive up to 50% of the retired worker’s basic
benefit, and the widow(er) of a retired worker may receive up to 100% of the retired worker’s
basic benefit.71
The claiming behavior of the worker generally affects the access to and amount of both spousal
and survivor benefits but in different ways. Under current law, a spouse can claim a spousal
benefit only when the worker has claimed his or her own benefit. The spousal benefit amount
may be adjusted based on the claiming age of the spouse, and it does not depend on the retired
worker’s own claiming age. By contrast, the age at which the retired worker claims benefits does
affect the amount of benefits payable to a surviving spouse. If the deceased worker claimed
benefits before reaching his or her FRA, the surviving spouse can receive no more than the
deceased worker was receiving. If the deceased worker claimed benefits after reaching his or her
FRA, the surviving spouse can inherit the deceased worker’s delayed retirement credits.
While the Statement includes information detailing how a worker’s claiming age affects his or her
own worker benefit amount, it communicates considerably less information about auxiliary
benefit amounts. The Statement currently only provides an estimate of what the survivor benefit
will be if the worker dies in the year the Statement was prepared. The Statement also notes that
the amount of the survivor benefit will depend on the worker’s claiming age but does not explain
how.
Among auxiliary benefits, the absence of more detailed information regarding survivor benefits in
the Statement has been considered a notable issue. Research suggests that the provision linking a
man’s claiming age to his spouse’s survivor benefit has important implications for the financial
well-being of elderly women in widowhood.72 However, several studies find that the claiming
behavior of married men does not always take into account the spouse and survivor benefits but

71 A person may qualify for a spousal or survivor benefit as well as for a Social Security benefit based on his or her
own work record (a retired-worker benefit). In such cases, the person effectively receives the higher of (1) the worker
benefit or (2) the spousal or survivor benefit. When the person’s retired-worker benefit is higher than the spousal or
survivor benefit to which he or she would be entitled, the person receives only the retired-worker benefit. Conversely,
when the person’s retired-worker benefit is lower than the spousal or survivor benefit, the person is referred to as dually
entitled and receives the retired-worker benefit plus a spousal or survivor benefit that is equal to the difference between
the retired-worker benefit and the full spousal or survivor benefit. In this case, the person receives a total (combined)
benefit amount equal to the higher spousal or survivor benefit. For more information, see CRS In Focus IF10738,
Social Security Dual Entitlement.
72 For example, see Andreas Hubener, Raimond Maurer, and Olivia S. Mitchell, “How Family Status and Social
Security Claiming Options Shape Optimal Life Cycle Portfolios,” Review of Financial Studies, vol. 29, no. 4 (2016),
pp. 937-978; Jeffrey Diebold, Jeremy Moulton, and John Scott, “Early Claiming of Higher-Earning Husbands, the
Survivor Benefit, and the Incidence of Poverty Among Recent Widows,” Journal of Pension Economics and Finance,
vol. 16, no. 4 (October 2017), pp. 485-508.
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rather tends to be responsive to incentives built into their own benefits (e.g., private pensions and
health insurance benefits).73
One possible explanation for these findings is that workers appear to be somewhat less
knowledgeable about the survivor benefit. For example, one study found that about 20% of
married individuals report being “very knowledgeable” about how their own claiming age will
affect their spouses or how their spouses’ decisions will affect them.74 Another study found that
18% of workers who appeared to understand the claiming age provisions of the survivor benefit
correctly identified age 70 as the age at which the monthly survivor benefit amount is
maximized.75 In a more recent study, the authors used data from the Understanding America
Study (UAS)76 and suggested that knowledge of spousal and survivor benefits is low. They also
found that people’s perceptions of their knowledge is misaligned with their actual knowledge,
with many perceiving that they know more about Social Security than they actually do.77
Research has analyzed different types of experiments by presenting survivor benefits to married
couples and found mixed effects of those informational interventions on Social Security
knowledge and claiming behavior for married couples.
One study used a randomized experimental design to analyze the effects of two modifications to
the survivor benefit information within the Social Security Statement on benefit knowledge and
expected claiming behavior. The first modification included adding survivor benefit projections
by claiming age in the Statement’s current benefit table, and the second modification inserted a
special, age-targeted sheet containing detailed survivor benefit information and mailed it to
workers along with the Statement. The authors found that the inserted sheet was the dominant
modification for improving survivor benefit knowledge, and the modified table was equally
successful as the inserted sheet at encouraging workers to report later expected claiming ages.
However, almost all observed effects of the modifications to the Statement in this study were
temporary (i.e., the effects faded away quickly).78
In another study, the authors used an online experiment and found that a simple information
intervention that demonstrates how delayed claiming enhances survivor benefits may be
insufficient to change the Social Security claiming behavior of the older husband. The study
suggested other policies separating (at least partially) survivor benefits from the husband’s
claiming age might be more effective in alleviating widows’ poverty.79

73 For example, see Alice M. Henriques, “How Does Social Security Claiming Respond to Incentives? Considering
Husbands’ and Wives’ Benefits Separately,” Journal of Human Resources, vol. 53 no. 2 (Spring 2018), pp. 384-413;
Steven A. Sass, Wei Sun, and Anthony Webb, “Social Security Claiming Decision of Married Men and Widow
Poverty,” Economics Letters, vol. 119, no. 1 (April 2013), pp. 20-23.
74 Mathew Greenwald et al., What Do People Know About Social Security? Financial Literacy Center (A joint center of
the RAND Corporation, Dartmouth College, and the Wharton School), Working Paper WR-792-SSA, October 2010.
75 S. Kathi Brown and Rebecca Perron, Determining How Current and Future Social Security Beneficiaries Make
Retirement Decisions, American Association of Retired Persons, July 2011, p. 72.
76 The UAS is an Internet panel of households of approximately 9,500 respondents representing the entire United
States. For more information, see University of Southern California, “Understanding America Study,”
https://uasdata.usc.edu/index.php.
77 Katherine G. Carman and Angela A. Huang, Social Security Household Benefits: Measuring Program Knowledge,
Michigan Retirement Research Center, Working Paper 2018-384, September 2018.
78 Jeffrey Diebold and Susan Camilleri, “An Experimental Analysis of Modifications to the Survivor Benefit
Information Within the Social Security Statement,” Journal of Pension Economics and Finance, vol. 19, no. 1 (January
2020), pp. 21-48.
79 For example, one proposal would increase the surviving spouse’s benefit to the higher of (1) the deceased spouse’s
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Additionally, one study conducted a survey experiment on the internet-based UAS to analyze the
effects of presenting survivor benefits information on claiming behavior. The authors found that
such information tends to increase suggested claiming ages only among the subgroup of
respondents with the least overall knowledge about their Social Security benefits.80
Benefit Adjustments for Earnings Not Covered Under Social Security
A worker’s employment or self-employment is considered covered by Social Security if the
services performed in that job result in earnings that are taxable and creditable for program
purposes. Although participation in Social Security is compulsory for most workers, about 6% of
all workers in paid employment or self-employment are not covered by Social Security.81
Noncovered workers are mainly state and local government employees covered by alternative
staff-retirement systems and most permanent civilian federal employees hired before January 1,
1984, who are covered by the Civil Service Retirement System (CSRS) or other alternative
retirement plan. The WEP and GPO are two separate provisions that reduce regular Social
Security benefits for workers and their eligible family members if the worker receives (or is
entitled to) a pension based on earnings from employment not covered by Social Security.82
Based on different measures, both the WEP and GPO adjustments are linked with the noncovered
pension benefit amount. For more information on the WEP and the GPO, see Appendix A.
In the past, the annual Social Security Statements that SSA made available to all eligible
individuals provided benefit estimates based only on covered employment. No estimates of the
WEP and GPO adjustments were provided because SSA does not have information on an
individual’s receipt of a noncovered pension until the individual self-reports noncovered pension
receipt when applying for Social Security benefits. Because of this limitation, beneficiaries have
argued that they were not given sufficient notice of how much their benefits would be reduced
due to the WEP or the GPO.83
To address this issue, the Social Security Protection Act of 2004 (P.L. 108-203) required state and
local government employers to disclose the effects of the WEP and GPO to affected employees
hired on or after January 1, 2005. SSA also responded to those communication issues by inserting
a description of the WEP and GPO into the Statement beginning in 2007. Starting in 2020, the
Statement includes an informative block about “Earnings Not Covered by Social Security” and a
separate fact sheet on the WEP and GPO accompanies the Statement.
Communication challenges remain. The Statement provides no estimates of the current WEP or
GPO adjustment. Those adjustments are difficult to estimate without information on noncovered

benefit, (2) the surviving spouse’s own benefit, and (3) 75% of the couple’s combined monthly benefit when both
spouses were alive. The 75% survivor benefit could mediate the link between the deceased worker’s benefit and the
surviving spouse’s benefit, because the Social Security benefit amount would partially depend on the surviving
spouse’s own benefit. See Anek Belbase and Laura D. Quinby, Would Greater Awareness of Social Security Survivor
Benefits Affect Claiming Decisions, Center for Retirement Research at Boston College, Working Paper 2018-12,
October 2018.
80 Francisco Perez-Arce et al., “The Effects of Informational Prompts About Survivor Benefits for Spouses on Social
Security Claim Intentions,” Journal of Pension Economics and Finance, vol. 20, no. 4 (October 2021), pp. 504-515.
81 SSA, OCACT, Social Security Program Fact Sheet, January 2022, https://www.ssa.gov/OACT/FACTS/
fs2021_12.pdf.
82 For more information, see CRS In Focus IF10203, Social Security: The Windfall Elimination Provision (WEP) and
the Government Pension Offset (GPO).
83 For example, see SSAB, The Windfall Elimination Provision: It’s Time to Correct the Math, October 1, 2015.
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pensions, which is generally not available until the worker is entitled to such pension at a later
date.
Some recent legislative proposals would require SSA to show noncovered as well as covered
earnings records on the Statements. Those proposals include the Public Servants Protection and
Fairness Act (H.R. 2337) and the Equal Treatment of Public Servants Act (H.R. 5834). Both bills
would replace the current-law WEP formula with a proportional formula that would apply the
regular Social Security benefit formula to all past earnings from both covered and noncovered
employment.84 The Public Servants Protection and Fairness Act, in addition, would require the
Statements to include projected benefits using the proportional formula for those workers who
would likely be subject to the WEP. After enactment, these proposed changes could provide
future beneficiaries with some information regarding the WEP adjustment. However, because the
GPO is not based on noncovered earnings, and neither bill proposes a change in the current-law
GPO, an estimate of the effect of the GPO would not be possible. The exact WEP and GPO
reductions would still require the information on noncovered pensions.
Accrued Benefit Illustration
The current Statement provides an estimate of an individual’s retirement benefits using the
worker’s historical earnings and projected future earnings until retirement. In a 2009 report, the
SSAB suggested that the Social Security Statement include an accrued benefit illustration. The
accrued benefit amount is the monthly retirement benefit a worker has earned based on his or her
actual earnings to date (i.e., a projection of future earnings is not taken into account). This amount
demonstrates what the worker would receive from Social Security in the event that the worker has
no future covered earnings (for example, if the worker were to switch to noncovered
employment—in which case the WEP may be a factor—or drop out of the labor force).85
The accrued benefit can be considered as a lower bound estimate of an individual’s retirement
benefit. A comparison of the accrued benefit and the future benefit shows how future earnings can
affect an individual’s Social Security benefit amount. The accrued benefit would be updated
annually to reflect the effect of each additional year of earnings.
Other Retirement Plan Information
Social Security is only one part of overall retirement planning for Americans. In addition to
Social Security, the older population can also receive income from pensions and retirement
savings, asset income, earnings, and other sources. Statistics show that Social Security accounted
for 30% of aggregate income among individuals aged 65 or older in 2015, while pensions and
retirement savings accounted for 36%.86
Reports have suggested that the Statement provide information to help beneficiaries understand
Social Security’s contribution to their total retirement income. For example, in a 2005 report, the
Government Accountability Office (GAO) pointed out that the Statement did not compare the
Social Security retirement benefit with how much total income a person may need in retirement

84 For more information, see CRS In Focus IF11355, The Windfall Elimination Provision (WEP) in Social Security:
Proposals for a New Proportional Formula.
85 SSAB, The Social Security Statement: How It Can Be Improved, August 2009.
86 Irena Dushi and Brad Trenkamp, Improving the Measurement of Retirement Income of the Aged Population, SSA,
Office of Research, Evaluation, and Statistics (ORES), Working Paper Series, No. 116, January 2021. The study shows
that earnings accounted for 26% of aggregate income for individuals aged 65 or older in 2015, and other sources
accounted for less than 10%.
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or offer suggestions and strategies for meeting income goals through other sources of retirement
income.87 In a 2013 paper, the SSAB suggested that the Statement emphasize that Social Security
is not intended to replace 100% of wages at retirement but rather to supplement an individual’s
pensions, retirement savings, and other personal savings.88 This issue seems to have been
addressed by the current content of the Statement, which includes related language in the section
titled “Important Things to Know About Your Social Security Benefits.” Moreover, in addition to
the Statement, SSA now provides fact sheets to workers ages 18-60 that contain information for
retirement planning.89 The fact sheets include descriptions of Social Security as one source of
income in retirement, other retirement income sources such as pensions and retirement savings,
some basics of retirement planning, and related links.
The general retirement planning information does not apply to each individual’s case. One may
argue that specific information about each individual’s pensions and retirement plans would help
him or her plan for retirement better. In a 2014 report, GAO recommended that SSA consolidate
information on potential vested retirement plan benefits with the Social Security Statement.90 The
Employee Retirement Income Security Act of 1974 (ERISA) authorized SSA to access a file from
the IRS of past unclaimed vested retirement plan benefits for workers.91 However, SSA expressed
concerns that the agency has no legal or operational knowledge of retirement plans to respond to
related questions from the public.92
Design of the Statement
The design of the Statement refers to the structure of the information sheet, including the order of
information; the use of graphics, color, and space; the style of language; the choice of font size;
and other related factors. A well-designed Statement can help convey information and improve
understandability.
In the 2000s, among many studies analyzing design features in various information sheets, two
reports provided systematic analysis of the design of the Social Security Statement. One report
was written by GAO in 2005. By obtaining information from its national survey and focus groups
made up of Statement recipients and other officials and experts, GAO suggested that the
Statement show the personalized benefit information first, use graphics to aid reader
comprehension, and create targeted messages to keep information highly relevant to the

87 GAO, Social Security Statements: Social Security Administration Should Better Evaluate Whether Workers
Understand Their Statements, GAO-05-192, April 2005.
88 SSAB, The Online Statement and MySSA Portal: SSA Should Take Additional Steps to More Effectively
Communicate with the Public, December 2013.
89 SSA, Retirement Ready: Fact Sheet for Workers Ages 18-48, and Retirement Ready: Fact Sheet for Workers Ages
49-60, https://www.ssa.gov/myaccount/statement.html.
90 GAO, 401(k) Plans: Greater Protections Needed for Forced Transfers and Inactive Accounts, GAO-15-73,
November 2014.
91 ERISA established Section 1131 of the Social Security Act, which requires SSA to furnish information regarding
deferred vested pension rights to pension plan participants and their dependents or survivors. For more information, see
SSA, Justification of Estimates for Appropriations Committees, Fiscal Year 2023, “Payments to the Social Security
Trust Funds,” March 2022, p. 21, https://www.ssa.gov/budget/FY23Files/FY23-JEAC.pdf.
92 GAO, 401(k) Plans: Greater Protections Needed for Forced Transfers and Inactive Accounts, GAO-15-73,
November 2014.
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individual recipient.93 The other report was prepared by the SSAB in 2009.94 The study suggested
a number of enhancements to the Statement design, including ways to improve the appearance
(presenting more white space, more graphics, and less text); language (using less bureaucratic and
more neutral language); and other sources of detailed or special information (referring to inserts,
websites, and links).
The new version of the Statement and the accompanying fact sheets became available in fall
2021.95 It appears that the new version has noticeable changes based on some of the
recommendations made by GAO and the SSAB. For example, the Statement presents a worker’s
retirement benefits first, uses more graphics and white space, refers to other sources of retirement
income, uses more targeted messages, and also changes some of the language to make the
information more understandable. SSA has expressed its intention to gather feedback from the
public and related parties about the impacts of the new Statement design.96
Delivery of the Statement
As discussed earlier, in May 2012, SSA implemented “my Social Security Account” on the
agency’s web portal where registered users can access their Statements online at any time. In
2017, citing ongoing budget constraints, SSA stopped mailing paper Statements to everyone
except those aged 60 or older who are not receiving benefits and who do not have online accounts
(“my Social Security Accounts”). Analysis has shown several concerns regarding the shift from
mailed paper Statements toward online Statements.
First, the shift has resulted in a significant reduction in the number of people who received or
viewed their Statements. In FY2010, SSA mailed approximately 155 million Statements,
compared to 14.6 million in FY2018.97 In FY2018, there were about 38.8 million registered users
of “my Social Security Account,” and 16.8 million (or 43%) accessed their Statements online. In
total, about 31.4 million people received or viewed their Statements in any form—paper or
online—in FY2018.98
Second, evidence suggests that the transition to online accounts has created additional barriers for
those who do not have internet access or are not comfortable using technology. Based on the
American Community Survey, about 10.2% of the U.S. population did not have computers or
internet subscriptions in the period from 2016 to 2020.99 Computer ownership and internet
subscription varies by age, race, and education attainment. Typically, people aged 65 or older
(23.3%), those identifying as Black or African American (17.2%) and American Indian and
Alaska Native (23.6%), and those with less than a high school diploma or equivalency (29.2%)

93 GAO, Social Security Statements: Social Security Administration Should Better Evaluate Whether Workers
Understand Their Statements, GAO-05-192, April 2005.
94 SSAB, The Social Security Statement: How It Can Be Improved, August 2009.
95 SSA, “Social Security Announces Redesigned Statement—Now Available with a “my Social Security Account,’”
press release, October 4, 2021, https://www.ssa.gov/news/press/releases/2021/#10-2021-1. For the new version of the
Statement, see Figure B-1 and Figure B-2.
96 SSA, Annual Performance Report Fiscal Years 2021-2023, April 2022, p. 24.
97 SSA, Office of the Inspector General, Congressional Response Report: Issuance of Social Security Statements, A-03-
18-50724, February 2019.
98 Ibid.
99 U.S. Census Bureau, American Community Survey, Table S2802 Types of Internet Subscriptions by Selected
Characteristics, 2020: ACS 5-Year Estimates Subject Tables, https://www.census.gov/programs-surveys/acs/data.html.
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were less likely to have computers or internet subscriptions compared to other groups.100 A 2011
report from GAO expressed concerns that people who could not obtain Statements online were
likely to be lower earners—those who could least afford to remain uninformed about their Social
Security benefits.101
Third, survey data show that a majority of Americans prefer receiving Statements through the
mail. For example, one 2010 study found that 76% of respondents preferred to receive Statements
through the mail, compared to 7% who prefer the internet or email.102 In a more recent study
using the UAS, the authors found that most respondents prefer Statements to be mailed. The share
of individuals who preferred paper Statements declined from 2015 to 2019, while the share of
individuals who preferred both a paper Statement and an electronic (e.g., internet or email)
Statement increased during the same time.103 One additional study also used the UAS and found
that about 40% of respondents feel uncomfortable about online transactions related to Social
Security benefits, 17% of non-retirees have heard about “my Social Security Account,” and when
asked about future delivery preference, about 84% of non-retirees would find mailed information
at least somewhat useful.104
Legislation has been introduced that would expand the distribution of the paper Statement. For
example, the Know Your Social Security Act (H.R. 4143 and S. 2204) would require SSA to mail
Statements to eligible individuals aged 25 or older unless they have elected to receive the
Statement electronically.105 Research suggests that more Americans would receive Statements
under this legislation compared to the current practice in which “my Social Security Account”
users as well as individuals who have not registered for accounts do not automatically receive
paper Statements in the mail and must request mailed paper Statements from SSA.106
Research also suggests alternative information delivery options, such as through employers and
payroll providers and SSA digital applications. One study used the UAS and found that non-
retirees would find information delivered in the workplace useful, while retirees would find in-
person services from local Social Security offices useful. Non-retirees are also interested in
SSA’s web-based tutorials and digital applications, but retirees are not.107 With respect to
expanding delivery options to include employers and payroll providers, there would be various
issues to consider such as data sharing/data privacy issues, SSA’s need for additional resources,

100 Ibid.
101 GAO, Social Security Statements: Observations on SSA’s Plans for the Social Security Statement, testimony before
the Subcommittee on Social Security, Committee on Ways and Means, House of Representatives, GAO-11-787T, July
2011.
102 Mathew Greenwald et al. What Do People Know About Social Security? Financial Literacy Center (A joint center of
the RAND Corporation, Dartmouth College, and the Wharton School), Working Paper WR-792-SSA, October 2010.
103 Patricia Delafuente et al., Impact of Technology on Adult Preferences of Receiving Social Security Statement,
presentation from Current Innovations in Probability-based Household Internet Panel Research Conference, February
27, 2020.
104 Lila Rabinovich and Joanne Yoong, How Do People Want to Learn About Social Security? University of Southern
California, Center for Economic and Social Research and Leonard D. Schaeffer Center for Health Policy and
Economics, Working Paper 2015-021, May 2016.
105 The provision is also included in Social Security 2100: A Sacred Trust (H.R. 5723 and S. 3071 in the 117th
Congress).
106 For more discussion, see Jason J. Fichtner et al., How to Help Americans Claim Social Security at the Right Age,
Bipartisan Policy Center, August 2020; and Rebecca Perron, Paper by Choice: People of all Ages Prefer to Receive
Retirement Plan Information on Paper, American Association of Retired Persons, November 2012.
107 Lila Rabinovich and Joanne Yoong, How Do People Want to Learn About Social Security? University of Southern
California: Center for Economic and Social Research and Leonard D. Schaeffer Center for Health Policy and
Economics, Working Paper 2015-021, May 2016.
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and the need for cooperation from employers, among others. It is important to note that SSA
would generally not share personal earnings information with other parties due to privacy
concerns. It is also unclear whether individuals would be willing to share their earnings data
directly or indirectly with parties that currently do not have access to such information.
Conclusion
The Social Security Statement is considered to be an important tool that SSA uses to
communicate with the public. It is also considered to be a financial literacy vehicle to assist
individuals and households with retirement planning. Based on the mailing of the previous
versions of the Statement, researchers generally agree that receipt of the Statement can increase
people’s knowledge about certain aspects of the Social Security program, while its effect on
individuals’ behavior (e.g., Social Security claiming) is uncertain. As the new version of the
Statement recently became available in fall 2021, its impact on individuals’ knowledge of Social
Security and their employment and retirement decisions are yet to be analyzed. Additionally,
since the online Statement appears to reach a smaller population than the paper Statement does,
policymakers may seek strategies to increase individuals’ access to the Statement either through
online accounts, mailings, or other tools.

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The Windfall Elimination Provision
(WEP) and the Government Pension Offset (GPO)
The Social Security program includes two provisions that affect Social Security beneficiaries who
also receive pensions from noncovered employment: the WEP and the GPO. Congress enacted
these provisions to address equity issues created by the exclusion of some state and local
government employees from Social Security coverage. The WEP, which was enacted in 1983,
affects the Social Security benefits that an individual receives based on his or her own work
record (as a retired or disabled worker) as well as the benefits paid to his or her eligible family
members. The GPO, which was enacted in 1977 and modified in 1983, affects the Social Security
benefits that an individual receives as the spouse or surviving spouse of a Social Security–
covered worker.108 Although the WEP and the GPO have been part of Social Security law for
decades, these provisions are often not well understood by people who are affected by them. In
2004, Congress enacted legislation that requires the Statement to include information on the WEP
and the GPO.109 The Statement serves as a vehicle to provide an explanation of the WEP and the
GPO, as well as estimates of the effect of these provisions on future Social Security benefits for
individuals who receive pensions from noncovered employment and their eligible family
members.
WEP
The WEP affects individuals who have worked in both covered and noncovered employment. If
an individual is receiving a pension from noncovered employment, his or her Social Security
benefits are subject to reduction under the WEP if he or she has fewer than 30 years of substantial
earnings in covered employment.110 Under the WEP, the worker’s Social Security benefits are
computed using an alternative benefit formula (the “windfall formula”) rather than the regular
benefit formula. The windfall formula results in a lower initial monthly benefit for the worker.
The amount of the reduction in the initial monthly benefit is limited to one-half the monthly
amount of the worker’s noncovered pension. The WEP also reduces benefits payable to eligible
family members on the worker’s earnings record. In December 2020, about 1.9 million Social
Security beneficiaries (about 3% of beneficiaries) were affected by the WEP.111
Rationale for the WEP
The regular benefit formula has a progressive structure intended to help workers with long careers
in covered employment at lower wages. That is, compared to higher earners, lower-wage workers
receive initial monthly benefits that replace a larger percentage of their career-average
earnings.112 The windfall formula is designed to remove an unintended advantage that the regular

108 The WEP was enacted as part of the Social Security Amendments of 1983 (P.L. 98-21). The GPO was enacted as
part of the Social Security Amendments of 1977 (P.L. 95-216) and modified as part of the Social Security Amendments
of 1983 (P.L. 98-21).
109 The requirement was enacted as part of the Social Security Protection Act of 2004 (P.L. 108-203, see Section
419(b)).
110 The reduction under the WEP is phased out for workers with between 21 and 30 years of substantial earnings in
covered employment. Workers with 30 or more years of substantial earnings in covered employment are exempt from
the WEP.
111 For more information on the WEP, see CRS In Focus IF10203, Social Security: The Windfall Elimination Provision
(WEP) and the Government Pension Offset (GPO).
112 For more information, see CRS Report R46658, Social Security: Benefit Calculation.
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benefit formula would otherwise provide to workers with less than a full career in covered
employment (sometimes at higher wages) because they also worked in noncovered employment
and receive pensions based on noncovered work.
GPO
The GPO affects individuals who have worked in noncovered employment, qualify for a pension
based on this noncovered employment, and also qualify for Social Security benefits as the spouse
or surviving spouse of a Social Security–covered worker. If an individual is receiving a pension
from noncovered employment, his or her Social Security spousal or widow(er) benefits are
subject to reduction under the GPO. The individual’s Social Security spousal or widow(er)
benefits are reduced by an amount equal to two-thirds of his or her noncovered pension (a two-
thirds offset). Depending on the relative amounts of the two benefits, the Social Security spousal
or widow(er) benefits may be reduced to zero. In December 2020, the GPO affected about
717,000 Social Security beneficiaries (about 1% of beneficiaries).113
Rationale for the GPO
The GPO is intended to replicate a provision of Social Security law known as the dual entitlement
rule. This provision affects individuals who have worked in covered employment and also qualify
for Social Security benefits as the spouse or surviving spouse of a Social Security–covered
worker. If an individual is receiving Social Security benefits based on his or her own work in
covered employment, his or her Social Security spousal or widow(er) benefits are subject to
reduction under the dual entitlement rule. The individual’s Social Security spousal or widow(er)
benefits are reduced by the full amount of his or her own Social Security worker benefits (a 100%
offset). Depending on the relative amounts of the two benefits, the Social Security spousal or
widow(er) benefits may be reduced to zero.

113 Ibid.
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link to page 34 link to page 35

The Social Security Statement

Sample Paper Social Security
Statement
Figure B-1 and Figure B-2 display the sample paper Social Security Statement (page 1 and page
2, respectively) available on SSA’s website.114 These images are based on the new version of the
Statement that became available in fall 2021.115 Paper Statements are mailed to people aged 60 or
older who are not receiving Social Security benefits and who are not registered for “my Social
Security Accounts.” Currently, the mailed Statement and supplemental fact sheets are in black
and white print. SSA indicates that it plans to begin the contract negotiation for color printing of
the mailed Statement in FY2023.116

114 SSA, Social Security Statement, https://www.ssa.gov/myaccount/statement.html.
115 SSA, “Social Security Announces Redesigned Statement—Now Available with a ‘my Social Security Account,’”
press release, October 4, 2021, https://www.ssa.gov/news/press/releases/2021/#10-2021-1.
116 SSA, Annual Performance Report Fiscal Years 2021-2023, April 2022, p. 25.
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The Social Security Statement

Figure B-1. Sample Paper Social Security Statement, First Page

Source: Social Security Administration, “Social Security Statement,” https://www.ssa.gov/myaccount/
statement.html.
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