Social Security is a topic that makes a lot of people feel uneasy these days. With all the talk of government cuts, it’s hard not to wonder if Social Security will be next.

Let’s start by understanding that Social Security is not an “entitlement” — it’s a program we’ve all paid into. Here’s how it works:

• Employees contribute 6.2% of their wages, up to $176,100 in 2025.
• Employers match that, so the total contribution is 12.4%.
• If you’re self-employed, you pay the full 12.4%.

I’d like to see how Social Security compares to IRA or 401K contributions, but it’d venture to say that more goes into Social Security because it’s mandatory and it cannot be touched before retirement. With that much funding, I find it difficult to imagine how this program could just disappear!

There are a lot of rumors floating around out there.  So, let’s look past them and go straight to Social Security to see what they have to say:

Myth #1: Social Security is cutting its staff by 50%. ⁽¹⁾

The truth: While Social Security is reducing its workforce, it’s not nearly as drastic as some reports suggest. The goal is to streamline operations, and they plan to trim staff from 57,000 to 50,000—mostly through retirements and voluntary separations.

Myth #2: Social Security is closing local offices. ⁽²⁾

The truth: There haven’t been any announcements about closing local offices.  From time to time, SSA must temporarily close a local field office for reasons such as weather, damage, or facilities issues. They reopen when the issues are resolved. The agency has announced the permanent closure of one hearing office, in White Plains, NY.  There are no plans to close our local offices.

Myth #3: Social Security is eliminating phone services. ⁽³⁾

The truth: Phone services are still available, but there’s one small change: to make updates to your direct deposit information you’ll now need to verify your identity online or in person. This extra step is designed to reduce fraud, since about 40% of Social Security fraud comes from people calling to change direct deposit info.

What about those long wait times?

It’s true that wait times for both phone and in-person services can be long. In my experience, the lines have always been long at Social Security.  So are the wait times at my favorite restaurant, to get an appointment with my doctor, and just about any service number I call.  Long wait times are not unique to social security, and sadly, this is not exactly a new trend.

Here’s a helpful tip: No matter your age, it’s a good idea to create an online Social Security account.  It’s a quick and easy way to handle most tasks without waiting for service. This can be done at: https://www.ssa.gov/myaccount/.

Myth #4: Social Security is going bankrupt. ⁽⁴⁾

The truth: According to the 2024 Trustees Report, Social Security can pay full benefits through 2035. If Congress does not make changes to the program, then Social Security may still be able to pay about 83% of benefits. There are no grandfather provisions; these cuts will apply to those who are collecting currently, and to those who will collect in the future.  It’s not ideal, but it’s a far cry from the “end of Social Security” panic some people fear. Congress can fix this; it’s just a matter of if, or when, they’ll take action.  Perhaps we should all make a point to call our Congress person and/or factor the decrease into our financial planning. ⁽⁵⁾

Social Security has its challenges. I just don’t think our benefit will be disappearing anytime soon.

And for that, I am grateful.

Barbara

1. https://blog.ssa.gov/social-security-announces-workforce-and-organization-plans/
2. https://blog.ssa.gov/correcting-the-record-about-social-security-office-closings/
3. https://blog.ssa.gov/correcting-the-record-about-social-security-direct-deposit-and-telephone-services/
4: https://budget.house.gov/press-release/social-security-and-medicare-continue-on-path-to-insolvency-trustees-confirm
5. https://www.congress.gov/members/find-your-member

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