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Social Security is the financial foundation for millions of retirees, their survivors or dependents and disabled workers. The Social Security Administration sends more than $126 billion monthly to some 73 million retired and disabled beneficiaries. Retirees can’t outlive their inflation-adjusted benefits.
The landmark 1935 legislation is the most successful social policy program in modern U.S. history.
I don’t know what is going on at Social Security, but the turmoil at the agency — that multibillionaire Elon Musk and his Department of Government Efficiency have largely driven — is worrying. The agency’s plan is to cut some 12% of its workforce and reduce the number of offices, meaning the loss of valuable institutional knowledge. Former Social Security commissioners are concerned about prospects for deteriorating service and with good reason.
The agency’s workload is growing with the aging of the U.S. population.
Some 10,000 people turned 65 every day through the past decade, a number that surged to more than 11,200 per day in 2024 and 2025. Musk is also attacking the reliability of Social Security. He has said it is “the biggest Ponzi scheme of all time.
” He’s shared on social media that paying benefits to people “when they are definitely dead is a HUGE problem.” He’s also alleged there is massive waste and fraud. Nonsense.
Experts have debunked these charges. Social Security isn’t a Ponzi scheme. (Charles Ponzi was an infamous swindler.
) A dedicated tax supports Social Security. There is no evidence that significant numbers of dead people are collecting benefits. A 2024 report by Social Security’s inspector general found almost $72 billion in “improper payments” from 2015 to 2022.
While improper payments (usually overpayments to living people) are disappointing, the figure is a rounding error considering the $8.6 trillion in benefits paid during that period. The incendiary language masks a long-term funding gap to address to keep benefit promises.
Two changes account for the funding shortfall: People are living longer, and the birthrate is decreasing. Income inequality worsened since the mose recent system reform in 1983, and more high-earner income isn’t subject to payroll taxes. There are several sound proposals for shoring up Social Security’s funding.
That’s where the focus should be so that current and future retirees, survivors and disabled people can know their benefits will be there when needed. Meanwhile, I’d recommend for those on Social Security to keep good records and plan for longer wait times when resolving any issues or addressing any questions. Politics Readers Write Politics Chris Farrell is senior economics contributor for “Marketplace” and a commentator for Minnesota Public Radio.
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