During a recent interview with Fox News’ Bret Baier, Elon Musk claimed that his Department of Government Efficiency (DOGE) reforms at the Social Security Administration (SSA) would result in more money for the “legitimate recipients of Social Security.”
But is that probable, or even possible? GOBankingRates asked two experts to weigh in.
Next, learn what other promises Musk has made about Social Security.
Will Elon Musk’s DOGE Increase Social Security Payments?
Most experts say you shouldn’t get your hopes up that Musk will save enough money for the SSA to increase Social Security payments.
{snip}
Orestis’ assertion is backed up by many reports, including from The New York Times and Associated Press, which have debunked many of Musk’s and DOGE’s claims of fraud and waste.
Cut Costs Don’t Necessarily Lead to Higher Payments
Even if Musk did find waste, fraud and abuse, however, it would not result in an automatic increase in benefits.
“Social Security does not have the discretion to increase money being paid to beneficiaries based on somehow finding ‘extra’ money,” Orestis said. The mechanism that Social Security has to increase benefits is the annual, discretionary cost-of-living adjustment (COLA), which is a function of inflation, he added.
{snip}
“I doubt that Musk understands how Social Security benefits are calculated,” she said. “They are not based on how much money is in the trust fund, nor is it dependent on the level of staffing at SSA. It is based on how much the beneficiaries earned over their lifetime.”
This cannot change without an act of Congress, Shedden said.
She added that, instead of helping seniors get bigger checks, DOGE’s efforts to cut staff and close offices are more likely to make it more difficult for legitimate recipients to get the benefits they have earned.
How Can Social Security Benefits Be Increased?
It’s complicated. First, here’s a look at Social Security’s future if nothing is done.
{snip}
“Social Security is funded by payroll taxes covering about two thirds of annual spending and the Social Security trust fund covering about one third,” Orestis explained.
Further complicating the issue is the fact that the population receiving Social Security benefits is growing.
As Shedden pointed out, the only way Social Security benefits could be increased is if Congress passes laws on how benefits are calculated. At the same time, she said, there would need to be an increase in the revenue feeding the fund.
{snip}
Orestis said the most likely changes would be increasing the retirement eligibility age for people 10 years or more away from age 62 — the age at which you can currently start claiming Social Security benefits — increasing the amount taxed on higher income wage earners and possibly eliminating eligibility for people who are at a higher net-worth range.
“Do Jeff Bezos or Elon Musk really need to be on Social Security in the future?” he asked.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
* Original Article:
https://www.gobankingrates.com/retirement/social-security/elon-musk-social-security-benefits-will-increase-result-of-doge/