Seniors could be disadvantaged by new in-person Social Security requirement

Following initial reactions by trade groups and senior advocacy organizations to a new in-person identity verification requirement from the Social Security Administration (SSA), others are weighing in about the potential challenges that older Americans could face if the requirement is fully implemented.

Last week, SSA announced that beneficiaries who are unable to complete their identity verification online must go to an SSA office to have the process completed in person. This requirement is being floated at a time when SSA is reportedly set to close a number of field offices nationwide — potentially creating even more conflict.

If more older Americans have to journey to a local SSA office even as fewer offices are open, it could create unique challenges. This is particularly true for rural communities that do not have either reliable internet access or public transportation options, according to a report from the The Associated Press (AP).

The changes are scheduled to go into effect March 31. Some areas are already sounding the alarm. A report from the Anchorage Daily News detailed the potential impacts on rural Alaskans.

“Many Alaskans will have no choice but to fly from their villages and communities to reach the nearest SSA office,” Teresa Holt, director of the Alaska affiliate of AARP, told the outlet. “For rural Alaskans and those with mobility challenges, this is a huge barrier to accessing services, maybe even preventing them from getting the benefits they’ve earned.”

Alaska maintains three SSA field offices in Anchorage, Fairbanks and Juneau.

The scenario carries similarities to an issue the reverse mortgage industry has faced for the past several years regarding state-specific counseling requirements faced by older residents who needed to complete an in-person counseling session to qualify for a Home Equity Conversion Mortgage (HECM) loan.

In Massachusetts, a state requirement establishing an in-person counseling requirement wreaked havoc on area seniors seeking a reverse mortgage. As of 2021, the state had only five HECM-certified counselors through the U.S. Department of Housing and Urban Development (HUD).

This requirement became more onerous during the COVID-19 pandemic, when lockdown orders exacerbated the challenges for prospective borrowers who sought a counseling certificate. The issues were ultimately resolved with legislation in mid-2024, but it was a long road.

The impact for Social Security, however, could be much broader — particularly if plans to shutter various offices go through. Many older Americans rely exclusively on Social Security benefits as their sole source of income, and many seniors on fixed incomes are facing shortfalls in retirement savings.

Last week, Department of Commerce Secretary Howard Lutnick posited that seniors would not complain if they missed a Social Security check, according to reporting from Axios.