Social Security Concerns and Strategies for Preserving Benefits

Addressing potential future benefit cuts, restoring solvency, and minimizing anxiety around Social Security:

1. Overview of Rising Concerns: The recent surge in questions from clients regarding the future of Social Security has been massive. Concerns were fueled by reports indicating potential benefit cuts in 2035 if no legislative or policy changes are enacted. Additionally, the announcement of field office closures, reduced services, and staff firings has contributed heavily to the growing anxiety.
2. Fraud and Waste Investigations: The Office of Inspector General (OIG) has a primary role in assessing fraud and waste within the Social Security Administration (SSA). They noted that such instances amount to less than 1% of SSA distributions, and a relatively small fraction of that 1% is actual fraud. The SSA is one of the most audited agencies in the government, contradicting rumors that large numbers of ineligible beneficiaries, such as “360-year-olds,” are receiving funds.
3. Fired Inspector General: The Inspector General for SSA was fired soon after the Trump administration took office, though no further details were provided on the reasons or implications of that decision.
4. Wendell Primus Proposal: In January 2025, Wendell Primus, Social Security’s Chief Actuary, announced a comprehensive proposal aimed at restoring long-term balance to Social Security. Primus’s plan eliminates the 75-year deficit and extends the trust fund many years beyond that window. The plan includes 17 provisions, with a chart below detailing the top 10.
5. Congressional Budget Office (CBO) Policy Recommendations: The CBO has also developed its own recommendations to ensure solvency for the SSA. These focus on adjustments to future benefits for new beneficiaries in order to address the looming deficit. That chart is also below.
6. Implications for Future Benefits: It’s estimated that there will need to be a 21% benefit cut in 2035 if nothing is done. This will be unacceptable to Social Security recipients. It’s reassuring that both the Wendell Primus proposal and the CBO’s policy suggestions show viable paths to strengthen Social Security.