As Americans got increasingly uneasy about the future of the Social Security program, former acting commissioner Leland Dudek wrote an opinion piece in the New York Post in an attempt to soothe some of these concerns.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
“In these first 100 days, we paid over $14.8 billion in long-delayed retroactive benefits to 2.2 million Americans under the Social Security Fairness Act,” Dudek wrote in his department’s defense, in the piece published May 6.
The new head of the organization, Frank Bisignano, was sworn in the following day and said, “President Trump has been clear about Social Security. We will protect it.”
Taking a page out of the commander-in-chief’s playbook, Dudek also took aim at journalists. “Some in the media have erroneously reported that our optimization effort includes terminating 12% or more of our workforce,” he said in the piece, titled “Don’t trust the media’s Social Security hysteria.” “Not true: In fact, the number of SSA employees involuntarily removed from federal service so far this fiscal year amounts to one-tenth of one percent of our total employees, in line with the prior year, under the previous administration.”
He also said no local SSA field offices are being permanently closed and listed other accomplishments like identifying over $1 billion in savings.
However, earlier statements from the administration itself contradict some of Dudek’s op-ed. The agency’s incoherent communication may exacerbate fears about the future of America’s retirement safety net.
During a March meeting, officials revealed that panicked Americans were claiming benefits earlier, paying the SSA $100 for certified copies of earnings records, and making more visits to field offices and calls to the agency. This came after news of multiple changes at the agency and President Trump and Elon Musk claiming there was widespread fraud.
The SSA is also expected to run out of funds by 2035, at which point only around 80% of full benefits will be paid. Action from Congress will be needed to avoid this.
Misleading defense
It should be noted that the “Social Security Fairness Act” which Dudek takes credit for was passed into law on January 5 — roughly 15 days before President Donald Trump took office and more than a month before Dudek was appointed as acting commissioner. The bill was first introduced in 2023.
In other words, billions of dollars in retroactive benefits were put into motion by the previous administration.
On February 28, the SSA published a statement on its website stating that it plans to reduce the workforce from 57,000 to 50,000 — which would imply a 12% reduction. It should be noted that this statement is focused on future plans.
Dudek’s statement about the workforce is backward looking since the federal government’s fiscal year runs from October 1 to September 30.
While the SSA has said no field offices are being permanently closed, a report from Government Executive says, a draft plan for service delivery includes “field office consolidation" as a goal for next year. "The scope of the envisioned ‘consolidations’ is unclear, though the document singles out field offices as on the chopping block next year," it said.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Meanwhile, American taxpayers looking ahead see a bleak future for this program. According to a March Gallup poll, public concern about Social Security has hit a 15-year high. Another survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research found that 8 in 10 workers (79%) and 7 in 10 retirees (71%) are at least somewhat about the U.S. government making significant changes to the American retirement system. Sixty percent of workers and 80% of the retirees who are concerned worry that changes could reduce their Social Security benefit.
If you’re worried about the future of this program, here’s how you can protect yourself.
Protect your retirement
The future of the public safety net is uncertain, and if you haven’t already, this could be a good time to start weaving your own safety net for retirement. Lean on tax-advantaged accounts such as the 401(k) and Roth IRA to accumulate a retirement nest egg in the most tax efficient way.
You could also consider a Health Savings Account, which has a triple tax advantage, to prepare for the costs of medical care in your senior years.
Speak to an expert financial advisor to create the best portfolio for your goals. Create an emergency fund so that you don’t have to raid your 401(k) if something unexpected takes place. Picking the right age to retire and minimizing your spending could go a long way towards protecting your family’s finances.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
