Social Security Is Changing Under President Donald Trump. Here's What Retirees Need to Know.

Key Points

• The Social Security Administration has worked with the Department of Government Efficiency to improve productivity and eliminate unnecessary costs.

• Social Security changes implemented to date under the Trump administration focus on prudent spending, workforce reductions, overpayment recovery, and fraud prevention.

• Despite cost savings strategies, the Social Security Trust Fund is still on pace to be depleted by 2033, at which point benefit cuts would happen automatically.

• The $23,760 Social Security bonus most retirees completely overlook ›

Donald Trump made accountability and efficiency cornerstones of his recent presidential campaign. And he formalized the push to eliminate wasteful federal spending with an executive order that established the Department of Government Efficiency (DOGE) mere hours after his inauguration on Jan. 20.

Trump also vowed to protect Social Security while on the campaign trail, and he has repeated that promise since returning to the White House. "I'm not going to touch Social Security, Medicare, Medicaid," Trump told Fox News in March. He also promised to rid the retirement program of fraud.

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Trump, nearly six months into his second term, has made progress on both fronts. Read on to learn how Social Security is changing under his administration.

Image source: Official White House Photo. President Donald Trump addresses a joint session of Congress.

How Social Security is changing under President Trump

The Social Security Administration (SSA) has worked with DOGE to increase productivity, reduce wasteful spending, and prevent fraud, aligning itself with the agenda President Trump laid out while campaigning last year. The most consequential changes are as follows:

Cost savings: The SSA has identified over $1 billion in costs savings through "common-sense approaches in areas such as payroll, information technology, contract and grants, real property, printing, travel, and purchase card policies." That represents about 15% of estimated administrative expenses in fiscal 2025.

Workforce reductions: In February, the SSA reduced its staffing target to 50,000 workers, down from 57,000. The agency has made progress on rightsizing its headcount, processing 350 deferred resignations and 3,000 voluntary separations through April. Those efforts will eventually lead to cost savings, but spending will increase in the near term because deferred resignations and voluntary separations involve incentive payments.

Overpayment recovery: The SSA increased the overpayment recovery rate to 50%, up from 10% under the Biden administration. That means beneficiaries overpaid by Social Security will have half of benefits withheld until the balance is zero. The first overpayment notices were mailed in late April and garnishments begin in late July. The SSA estimates it will save about $700 million annually. Anyone who receives an overpayment notice can appeal the decision.

Fraud prevention: In April, the SSA introduced new fraud prevention technology that lets beneficiaries complete all claims by telephone. The agency previously planned to require identity proofing in-person or through the online portal. But new anti-fraud capabilities will instead analyze patterns to identify anomalies within accounts, such that in-person identity proofing will only be required when irregularities are detected with phone claims.

Customer service: In July, the SSA gave an update on ongoing improvements to customer service. The new telecommunications platform introduced earlier this year has been rolled out to 70% of field offices, reducing the average speed to answer by 50% versus the annual average last year. Additionally, upgrades to my Social Security will ensure the online portal provides uninterrupted, 24/7 access starting in mid-July.

The Social Security Trust Fund is still on pace to be depleted by 2033

The Trump administration has undoubtedly made headway in cutting Social Security costs, but the changes implemented to date will not come close to offsetting the estimated $111 billion deficit the Social Security program is projected to run in fiscal 2025.

Importantly, consistent deficits mean the Social Security Trust Fund is shrinking, and the trustees expect the asset reserves to be depleted by 2033. After that point, the remaining funding sources (i.e., payroll taxes and taxes on benefits) will cover just 77% of scheduled payments. That means Social Security benefits could be cut by 23% within eight years.

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