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Verizon Employees and the Changing Future of Social Security

“Given the potential for Social Security reforms to reshape retirement income, Verizon employees should regularly revisit their savings strategies and consider a broader range of planning tools to adapt to evolving benefits trends.” – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.

“Verizon employees can strengthen their retirement outlook by staying updated on Social Security developments and by integrating flexible planning strategies that account for possible changes to future benefits.” – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article we will discuss:

The possible insolvency of the Social Security Trust Fund and its potential impact on future retirement benefits
Proposed legislative reforms, including raising the full retirement age and alternative funding strategies
Retirement planning actions Verizon employees can consider to prepare for potentially reduced Social Security support

The financial situation facing Social Security continues to worsen. Without major reforms—such as raising the full retirement age (FRA), adjusting taxes, or implementing corrective policies—the program is expected to become insolvent within the next decade. ¹ The following five data-driven insights highlight the urgency for Verizon employees and others to reconsider their retirement outlook:

Trust Fund Insolvency by 2034

According to the Social Security Administration’s 2024 Trustees Report, the Old-Age and Survivors Insurance (OASI) Trust Fund is anticipated to be depleted by 2034. ² At that point, only about 77% of scheduled benefits would be available using existing payroll tax revenue. ³ This development means those at Verizon nearing retirement should review income expectations and long-term planning.

Shrinking Workforce-to-Retiree Ratio

In 1960, 5.1 workers supported each retiree. ⁴ By 2025, the ratio is expected to drop to 2.7 and further decrease to 2.1 by 2035. ⁴ This demographic trend places additional pressure on the system, meaning current employees at Verizon may experience increased unpredictability in their retirement timelines.

Persistent Annual Deficits Since 2021

Since 2021, Social Security has paid out more in benefits than it has received in tax revenue, ⁵ causing the ongoing depletion of Trust Fund reserves. Verizon professionals should be aware that without reforms, these annual shortfalls are likely to increase.

Life Expectancy Outpaces Retirement Age

When the program started in 1940, average life expectancy at age 65 was 13 years. As of 2025, it is over 18 years. ² However, adjustments to the FRA have not kept pace, adding long-term financial pressures. Verizon retirees should consider this trend when reviewing how their pension and Social Security benefits may work together.

Automatic 23% Benefit Cuts in 2034 Without Reform

If no legislative action occurs, federal law requires that all Social Security benefits be reduced by 23% beginning in 2034. ² These changes would affect millions—including many Verizon employees—making it necessary to plan for potential reductions in retirement income.

Reform Proposals from Policymakers

Multiple proposals to address Social Security are being discussed, with the most debated change involving adjustments to the FRA. The House Republican Study Committee recommends gradually increasing the FRA from 67 to 69 by 2033. ⁶ For a typical Verizon worker, this could translate to $3,500 less in annual benefits over a 30-year retirement—approximately a 13% overall reduction.

Senator Rand Paul has proposed a more aggressive plan, calling for an FRA of 70 or 71, arguing that this aligns with longer life expectancies and addresses long-term fiscal demands.

Impact on Physically Demanding Jobs

If these proposals move forward, up to 257 million Americans could be affected. ⁷ Verizon team members in operational or field-based roles may find it difficult to work into their late 60s or 70s due to health limitations. In such cases, some may turn to Social Security Disability Insurance (SSDI), which could further strain the system.

Even though increasing the FRA to 69 would reduce benefits, it would only delay insolvency by one year—from 2034 to 2035—according to the Congressional Budget Office.

Arguments Supporting an FRA Increase

Proponents point to:

- Demographic strain: With fewer workers supporting more retirees, the program timeline needs to be reviewed.
- Extended longevity: Aligning FRA with life expectancy could help maintain balance in the program.
- Fiscal restraint: A higher FRA may lower overall outflows and reduce future tax increases or benefit reductions.

Critics Raise Equity and Health Concerns

Opponents note the regressive impact of these reforms:

- Occupational health disparities: Many physical laborers or lower-income workers—including some at Verizon—face health challenges that make extended work lives difficult.
- Income-based longevity gaps: Delaying the FRA disproportionately affects those with shorter life expectancies and poorer health.
- Alternative funding ideas: Proposals include increasing payroll taxes for high earners or removing the wage cap on Social Security taxes.

Implications for Retirement Planning

Verizon employees may benefit from adopting a cautious retirement approach:

- Increase contributions: Build additional savings in IRAs or Verizon 401k plans to help decrease reliance on Social Security.
- Diversify accounts: Roth IRAs and HSAs may provide added flexibility if Social Security payments are reduced.
- Plan conservatively: Expecting lower future benefits can help form a more robust retirement plan.

Key Takeaways for Verizon Employees

Fact or Proposal	Principal Implication
OASI Trust Fund depletion by 2034	Only 77% of benefits may be paid through payroll tax revenue.
Worker-to-retiree ratio falling to 2.1	Higher financial pressure on active workers to support retirees.
Annual deficits since 2021	Trust Fund reserves are being used to cover shortfalls.
Lifespan at 65 now about 18 years	Benefit duration is 50% longer than when the program began.
23% benefit cuts by 2034 without reform	Legally required reductions unless funding changes are made.
Raising FRA to 69–70	May reduce benefits by ~13%, only delays insolvency by one year.
Additional ideas	Raising wage cap, increasing payroll taxes, revising formulas.

Final Thoughts

Social Security’s future is uncertain, and workers at Verizon should remain attentive as reforms progress. Raising the full retirement age remains a point of debate; while it may help stabilize the system, those most impacted may be the least prepared for change. A broader solution will likely include some combination of tax adjustments, changes to the FRA, and new benefit structures.

On January 5, 2025, the Social Security Fairness Act repealed the Windfall Elimination Provision and Government Pension Offset, raising benefits for nearly 3 million public employees—including teachers, firefighters, and police officers—by $360 to $1,190 per month. While this provided meaningful relief, it also increased demands on the Social Security Administration’s processing capacity.

For Verizon employees, staying informed about these proposed changes is as important as monitoring industry developments. Taking proactive steps—such as diversifying savings, setting realistic expectations, and engaging in thoughtful retirement planning—can help individuals better navigate the uncertain horizon.

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Sources:

1. CBS News. ' Social Security's insolvency date is now a year earlier ,' by Aimee Picchi. June 19, 2025.

2. Social Security Board of Trustees. “The 2024 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds.” Social Security Administration, May 2024, pp. 7–21, 28–32, https://www.ssa.gov/oact/tr/2024/tr2024.pdf .

3. Social Security. ' Status of the Social Security and Medicare Programs .' 2025.

4. Huntington. ' What Does the Future Hold for Social Security and Medicare? ' 2024.

5. Pew Research Center. ' What the data says about Social Security ,' by Drew Desilver. May 20, 2025.

6. MSN. ' New Social Security rule proposal would raise retirement age to 69 for millions of Americans ,' by Andrea Arlett Nabor Herrera. 2025.

7. House Committee on the Budget. ' House Republican Budget Plans Would Cut Social Security Benefits .' 2025.

Other Resources:

1. Van de Water, Paul N. “What the 2024 Trustees’ Report Shows About Social Security.” Center on Budget and Policy Priorities, 7 May 2024, https://www.cbpp.org/research/social-security/what-the-2024-trustees-report-shows-about-social-security .

2. Anderson, Julia. “How Would Raising the Social Security Retirement Age to 69 Affect Your Benefits?” Kiplinger, 8 Apr. 2024, https://www.kiplinger.com/retirement/raising-the-social-security-retirement-age .

3. Congressional Budget Office. “Raising the Full Retirement Age for Social Security.” Congressional Budget Office, Nov. 2024, pp. 1–5, https://www.cbo.gov/publication/58905 .

4. Noguchi, Yuki. “If Social Security Not Fixed, Retirees Face Automatic Cut in 2033.” NPR, 6 May 2024, https://www.npr.org/2024/05/06/1249406440/social-security-medicare-congress-fix-boomers-benefits .

How does the Verizon Pension Plan facilitate retirement income for long-term employees, and what specific benefits can employees expect when enrolling in the retirement program provided by Verizon? What unique features does the Verizon Pension Plan offer compared to other retirement plans an employee might have encountered, and how can employees maximize the benefits of these features throughout their career at Verizon?

Verizon Pension Plan Benefits: Verizon's Pension Plan offers substantial benefits aimed at facilitating a secure retirement for long-term employees. Upon enrolling in the retirement program, employees can expect defined benefits that are based on their salary and years of service, ensuring a predictable and stable income after retirement. Unique to Verizon, compared to some other plans, may include options for early retirement under certain conditions and a choice between annuity payments or a lump-sum distribution upon retirement. Employees can maximize these features by planning for long-term service and considering their retirement income needs early in their careers.

In what ways can employees at Verizon strategize their rollover decisions when transitioning from the Verizon Pension Plan to other retirement savings plans upon leaving the company? What factors should be considered by Verizon employees to ensure they are making informed choices regarding rolling over funds to a traditional IRA or another qualified employer plan?

Rollover Strategies: When transitioning from the Verizon Pension Plan to other retirement savings options upon leaving the company, employees should strategize their rollover decisions carefully. Factors to consider include the tax implications, the investment options available in the rollover destination, and the timing of the transfer to avoid penalties. Verizon employees should evaluate the benefits of rolling over to a traditional IRA or another employer's plan, considering their future financial needs and retirement goals.

What are the implications of the recent IRS limits for 2024 concerning contributions to retirement plans for Verizon employees, and how does Verizon align its offerings with these federal regulations? Additionally, how can Verizon employees best take advantage of these limits to enhance their retirement savings while adhering to tax regulations?

IRS Contribution Limits: The implications of IRS limits for 2024 are critical for Verizon employees as these limits dictate how much can be contributed tax-deferred into retirement plans. Verizon aligns its offerings with these federal regulations by adjusting contribution limits in their plans accordingly. Employees are encouraged to maximize their contributions to take full advantage of tax-deferred growth, especially when IRS limits increase, thereby enhancing their retirement savings while adhering to tax regulations.

How does the special tax treatment for lump sum distributions from the Verizon Pension Plan affect employees who receive their benefits early or have specific circumstances, such as being born before 1936? What options do these employees have to manage their tax burden effectively, and how can they best navigate these complicated rules while planning for their retirement?

Tax Treatment of Lump Sum Distributions: The special tax treatment for lump sum distributions from the Verizon Pension Plan can significantly affect employees who opt to receive their benefits early or under specific circumstances like being born before 1936. These employees have options to manage their tax burden effectively by opting for ten-year averaging or capital gain treatment on eligible distributions, allowing for a potentially lower tax rate on their pension benefits.

For surviving spouses and alternate payees of Verizon employees, what are the specific benefits available under the Verizon Pension Plan? How do these benefits compare to those available to employees, and what steps must surviving spouses or alternate payees take to ensure they receive their entitled benefits without delays or complications?

Benefits for Surviving Spouses and Alternate Payees: For surviving spouses and alternate payees, the Verizon Pension Plan offers benefits similar to those available to employees, such as annuity payments or lump-sum options. These beneficiaries must take certain steps to ensure they receive their benefits without delays, such as providing necessary documentation and adhering to plan rules. The plan details and processes for claiming benefits should be clearly understood to avoid complications.

How can Verizon employees utilize the resources available through the Verizon Benefits Center to better understand and manage their retirement benefits? What specific tools and services does the Benefits Center provide, and how can these resources assist employees in making informed decisions regarding their pension plan options?

Utilizing Resources at the Verizon Benefits Center: Verizon employees can utilize various tools and services provided by the Verizon Benefits Center to manage and understand their retirement benefits. The Benefits Center offers personalized consultations, detailed plan documentation, and tools for estimating pension benefits and planning retirement income, assisting employees in making informed decisions about their pension plan options.

What challenges might Verizon employees face regarding eligibility and tax withholding when receiving their pension payments, and how can they mitigate these issues? It's crucial for employees to understand the mechanics of eligibility regarding rollovers and payment processing; what key pieces of information should they be aware of to avoid unexpected taxes?

Challenges in Eligibility and Tax Withholding: Verizon employees might face challenges regarding eligibility and tax withholding when receiving pension payments. Understanding the plan's criteria for eligibility, the implications of rollovers, and the impact of mandatory withholding on distributions is crucial. Employees can mitigate these issues by consulting with the Verizon Benefits Center or a tax advisor to ensure compliance and avoid unexpected taxes.

What is the process for Verizon employees wishing to initiate a direct rollover from the Verizon Pension Plan, and what documentation will they need to prepare? Can employees receive assistance from the Verizon Benefits Center during this process, and how does using a direct rollover benefit them compared to other forms of payment?

Direct Rollover Process: The process for initiating a direct rollover involves deciding the destination of the rollover (traditional IRA or another employer plan), completing necessary documentation, and potentially seeking assistance from the Verizon Benefits Center. A direct rollover helps in avoiding immediate taxes and maintaining the tax-deferred status of retirement savings.

In terms of retirement preparedness, how does the pension plan at Verizon accommodate employeesâ€™ needs for financial security in their senior years? What additional education or resources does Verizon provide to assure that employees fully understand their retirement options and the importance of planning ahead?

Retirement Preparedness: Verizon's pension plan is designed to accommodate the financial security needs of employees in their senior years. In addition to the pension benefits, Verizon provides educational resources and planning tools to ensure employees understand their retirement options and the importance of early and consistent retirement planning.

How can employees reach out to the Verizon Benefits Center for further information about the pension plan and other retirement benefits? What specific contact methods are available to employees, and how can these interactions enhance their understanding and management of retirement benefits provided by Verizon?

Contacting the Verizon Benefits Center: Verizon employees seeking more information about their pension plan and other retirement benefits can reach out to the Verizon Benefits Center through various contact methods such as phone, email, or online portals. These interactions are crucial for enhancing understanding and effective management of retirement benefits, ensuring employees make the most of the benefits available to them.