Social Security is in Crisis: We Must Resist Efforts to Change It

Published in Blackstone Valley Call & Times on August 19, 2025

Security will mark its 90th anniversary. On that date in 1935, President Franklin D. Roosevelt signed the landmark program into law as a safeguard against the “hazards and vicissitudes” of life.

“For a federal program to endure for 90 years and maintain an extremely high level of popularity among the American people is truly extraordinary,” says the National Committee to Preserve Social Security and Medicare (NCPSSM). “It is an achievement that should be celebrated far and wide.”

Yet this milestone comes amid growing political controversy that could shape the program’s future.

Privatization Concerns Emerge

Just 15 days before the anniversary, U.S. Treasury Secretary Scott Bessent made remarks that sent shockwaves through the aging advocacy community. Speaking at a Breitbart News–sponsored event, Bessent described President Trump’s newly enacted “Trump accounts” (also referred to as “Child Savings Accounts” or “Child IRAs”) as potentially serving as a “backdoor for privatizing Social Security.” His comments, made during a Breitbart policy panel on the evening of July 30, were quickly picked up by national media outlets.

Bessent elaborated: “If these accounts grow and you have in the hundreds of thousands of dollars for your retirement, that’s a game-changer too.” He suggested that the success and expansion of these individual retirement accounts—created under President Trump’s One Big Beautiful Bill Act—could eventually reduce Americans’ reliance on traditional Social Security benefits.

The law, signed by Trump on July 4, creates a new tax-deferred investment account for children under the age of 18, born in the U.S. between January 1, 2025, and December 31, 2028. These accounts are seeded with $1,000 in federal funds and allow additional contributions of up to $5,000 annually from parents, family members, or employers. Structured similarly to IRAs, the funds must be invested in low-cost mutual funds or exchange-traded funds (ETFs) that track a U.S. stock index.

Max Richtman, NCPSSM President and CEO, quickly issued a public response, calling on Trump to denounce Bessent’s suggestion of a “backdoor” to privatization. “President George W. Bush tried it after his re-election in 2004—and failed miserably. The American people didn’t buy it then, and they won’t buy it now,” Richtman said.

He urged the former president to issue a clear and unequivocal statement: “Make a clear, unequivocal statement (as only you can) that your administration will not try to privatize Social Security.”

John Hishta, Senior Vice President of Campaigns at AARP, also issued a statement and condemned Bessent’s comments. “We have fought any and all efforts to privatize Social Security, and we will continue to,” he said. “President Trump has emphasized many times that Social Security ‘won’t be touched,’ and that he is ‘not going to touch Social Security.’ This must include any and all forms of privatization.”

“Privatization is a terrible idea”, says Nancy Altman, President of Social Security Works in a statement, noting that unlike private savings, Social Security is a guaranteed earned benefit that you can’t outlive. “It has stood strong through wars, recessions, and pandemics. The American people have a message for Trump and Bessent: Keep Wall Street’s hands off our Social Security!,” she says.

Following the backlash, Bessent attempted to clarify his remarks in a post on X (formerly Twitter) the next day: “Trump Baby Accounts are an additive benefit for future generations, which will supplement the sanctity of Social Security’s guaranteed payments. This is not an either-or question. Our administration is committed to protecting Social Security and making sure seniors have more money.”

During her Thursday press briefing, White House Press Secretary Karoline Leavitt emphasized that President Trump remains “wholeheartedly committed” to protecting Social Security—even as Bessent’s earlier comments appeared to contradict that position. “What the Secretary of the Treasury was saying—and what this administration believes—is that these Trump newborn accounts, which are an incredibly creative and positive provision in the One Big Beautiful Bill, are meant to help supplement, not substitute, Social Security,” Leavitt told reporters.

Democrats and Advocacy Groups Push Back

Last Thursday, amid hundreds of events scheduled this month throughout the nation to celebrate SSA’s 90th anniversary, the Washington, D.C.–based Social Security Works hosted a press conference to warn against what they called Trump administration efforts to undermine and dismantle Social Security.

Moderator Nancy Altman, President of SSW, opened the Town Hall by emphasizing the importance of celebrating Social Security’s milestone anniversary and the need to protect and defend the program. Throughout the event, Altman introduced each speaker, describing them as champions dedicated to safeguarding Social Security.

Speakers cited administrative actions such as firing 7,000 employees, closing field offices, and creating a customer service crisis. During the 37-minute press event, prominent Democrats and leaders of progressive advocacy groups argued these steps were part of a deliberate strategy to erode public confidence and justify future benefit cuts or privatization.

They contrasted these actions with proposals to expand benefits and extend the program’s solvency by lifting the cap on taxable income. Sen. Bernie Sanders (D-Vermont), described as a leading champion of earned benefits and author of the Social Security Expansion Act, called Social Security “the most successful federal government program of all time.” This was said to counter claims by critics, like Elon Musk, who have called it a “Ponzi scheme.” Sanders added: “This is a huge fight. We have the American people behind us. Let’s win it.”

Sen. Ron Wyden (D-Oregon), Ranking Member of the Senate Finance Committee and a key figure in the Senate’s “Social Security War Room,” said: “Trump’s so-called promise to protect Social Security, in my view, is about as real as his promise to protect Medicaid—no substance.”

Rep. John Larson (D-Connecticut), Ranking Member of the Social Security Subcommittee of the Ways and Means Committee, urged Congress to expand benefits. He noted that the last major expansion was under President Nixon and that millions of seniors still live in or near poverty.

Former Social Security Commissioner under President Biden, Martin O’Malley, charged, “They’re trying to wreck its customer service so they can turn enough Americans against it—and ultimately get away with robbing it.” He described this as the strategic motivation behind what he called the Trump administration’s dismantling of the SSA’s operational capacity.

Rep. Debbie Dingell (D-Michigan), who helped organize the Expand Social Security Caucus and has deep family ties to the creation of both Social Security and Medicare, declared: “I’ll be damned if anybody’s going to take us back to those days,” recalling the poverty and desperation seniors faced before the program’s enactment.

Judith Brown, a Social Security beneficiary, gave personal testimony underscoring the critical role her monthly check plays in her financial survival.

Keisha Bras, Director of Opportunity, Race, and Justice for the NAACP; Molly Weston Williamson, a Senior Fellow with the Center for American Progress Action Fund and an expert on paid leave; and Sarah Francis of Unrig Our Economy rounded out the panel.

A Legacy Under Threat

NCPSSM President Max Richtman warns that while the anniversary is cause for celebration, “we must always defend the program from those who would privatize or outright eliminate it. These forces have been at work ever since Social Security was enacted.”

To educate the public and counter misinformation, NCPSSM has produced a new documentary, Social Security: 90 Years Strong, with funding from AARP. The film tells the story of the program’s creation during the Great Depression and its enduring role for seniors, people with disabilities, and their families.

The documentary features interviews with Senators Tom Harkin and Chuck Grassley, Nancy Altman (Social Security Works), Bill Arnone (formerly of the National Academy of Social Insurance), FDR’s grandson Jim Roosevelt, Tracey Gronniger (Justice in Aging), Kathryn Edwards (Labor Economist), and Giovanna Gray Lockhart (former Director, Frances Perkins Center).

Social Security is often called the “third rail” of American politics—a metaphor drawn from the high-voltage rail powering some trains, where contact can be fatal. In politics, “stepping on the third rail” can mean political death.

“More than 69 million Americans rely on Social Security today and as America ages, we expect at least 13 million more people to rely on it by 2035.” said Myechia Minter-Jordan, Chief Executive Officer at AARP in s July 21 statement announcing the results of a new SSA survey. “For 90 years, Social Security has never missed a payment, and Americans should have confidence that it never will,” she said.

The survey findings indicate that nearly two in three (65%) retired Americans say they rely substantially on Social Security, while another 21 percent say they rely on it somewhat. In 2020, 63% of retired Americans said they relied substantially on Social Security, jumping from 58% in both 2015 and 2010.

Social Security has strong bipartisan support, too. The survey found that that more than two-thirds of Americans (67%) believe Social Security is more important to retirees today than it was five years ago. Overall, 96% consider the program important, with broad bipartisan agreement: 98% of Democrats, 95% of Republicans, and 93% of Independents.

The Social Security Trustees’ 2025 annual report, released in June, projects the program’s trust funds will run short of money by 2034. Without action, beneficiaries could face an estimated 19% cut in monthly payments.

Whether lawmakers who support privatization —while keeping their voter base—if they “step on the third rail” by raising the full retirement age or refusing to raise taxes remains to be seen.

We’ll see.

Countdown to 2024 elections heating up about what to do about Social Security

Published in RINewsToday on November 27, 2023

The political clock is ticking. It’s 340 days before the upcoming presidential elections and control of Congress and the White House are up for grabs. As education, abortion, foreign policy, immigration, crime are emerging as upcoming campaign issues, fixing Social Security and Medicare are also on the voter’s radar screens, too.

As the Democrats call for expanding and shoring up the existing Social Security Program (by introducing H.R. 4583, Social Security 2100 Act and S. 393, Social Security Expansion Act and other legislative proposals), Republicans are calling for changes in the program including looking at raising the eligibility age for full-time retirement, possible means-testing, and adjusting benefits for higher income earners.

The Nov. 9th Republican debate was not reassuring for younger taxpayers who are counting on collecting the Social Security benefits they earn with every paycheck, says Max Richtman, President and CEO, National Committee to Preserve Social Security & Medicare. Two of the GOP presidential hopefuls promised, in effect, to cut Social Security for future beneficiaries,” he said.

However, former President Donald J. Trump, who didn’t participate in this debate, has warned the other candidates not to make cuts in Social Security and Medicare benefits. While he opposes raising payroll taxes to ensure the fiscal solvency of these programs, he doesn’t provide specific proposals as how to do this.

Presidential GOP candidates call for fixes to an unsustainable Social Security system

According to Richtman, Nikki Haley claimed that Social Security is going “bankrupt,” and she would raise the retirement age for workers who are now in their 20s, and also means-test benefits. Chris Christie also said he would raise the retirement age and eliminate benefits for higher earners, essentially converting Social Security into a safety net program, instead of an earned benefit.

“Governor Christie and Ambassador Haley fail to recognize that future generations of retirees will rely on their Social Security benefits even more than today’s seniors do — and that means testing would cut deep into the heart of the American middle class,” says Richtman. “Ron DeSantis — to his credit — promised not to cut Social Security, but demonstrated a fundamental misunderstanding of the program’s finances by perpetuating the myth that the government is ‘stealing’ from the trust fund,” he added.

On Oct. 25, the newly sworn in Republican House Speaker, Mike Johnson (R-LA) sent a message to his caucus calling for Social Security and Medicare reforms to be made by a debt commission to tackle changes being targeted for these programs. Richtman warns that this approach is “designed to give Congress political cover for cutting Americans’ earned benefits.” In response, the Biden Administration described such a commission as a “death panel” for Social Security.

Over six years ago, Congressman Johnson (now newly elected House Speaker) called for cuts to Social Security. According to Independent News Network, Meidas Touch Network, in a 2018 speech before the American Enterprise Institute, as incoming chair of the Republican Study Committee, he called for cuts in Social Security, Medicare and Medicaid. He viewed these programs as “essential threats” to the American way of life, even suggesting that the government might cease to exist if they continued to be fully funded the way they are now.

Slashing SSA benefits through a Debt Reform Commission

“That is why these commissions have been rightly described as ‘death panels’ for Social Security and Medicare. It is unfortunate and disappointing that one of the Speaker’s first priorities is creating a mechanism intended to slash programs that American workers pay for in every paycheck, fully expecting the benefits to be there when they need them,” says Richtman, charging that the House Speaker “clearly wishes to break this compact with the American people.”

“Congress should address Social Security in the sunlight, through regular order, as it always has,” said Nancy Altman, President of Social Security Works, and former top assistant to Alan Greenspan on the 1983 commission. “The only reason to create a fast-track, closed door commission is to overthrow the will of the American people by cutting their hard-earned benefits. Anyone who supports this commission is supporting benefit cuts.”

In a Nov. 13 correspondence to Congress, Jo Ann C. Jenkins of the Washington, DC-based AARP, also opposes the creation of s debt commission. She strongly disputes the GOP’s claim that Social Security is a driver of the annual deficits or national debt, stressing that the program is self-financed.

According to Jenkins, 90% of the retirement program is financed through payroll contributions from workers and their employers. Around 4% of its funding comes from federal income taxes on some Social Security benefits and 5.4% comes from interest earned on U.S. Treasury bonds held by the Social Security Trust Funds.

“Any argument that claims that Social Security is a driver of the national debt – simply because it receives interest from the U.S. Treasury bonds- is disingenuous,” says Jenkins, noting that U.S. Treasury bonds are of the world’s safest investments.

Alex Lawson, Executive Director of the Washington, DC-based Social Security Works, agrees with Richtman’s assessment of House Speaker Johnson’s ongoing approach to Social Security and Medicare. “The Louisiana Congressman recently joined the vast majority of his caucus to vote for a commission designed to fast-track cuts to Social Security and Medicare behind closed doors”, notes Lawson.

“As Chair of the Republican Study Committee from 2019-2021, Johnson released budgets that included $2 trillion in cuts to Medicare and $750 billion in cuts to Social Security,” says Lawson. This includes raising the retirement age, decimating middle class benefits, making annual cost-of-living increases smaller and ultimately moving towards privation of Social Security and Medicare,” he notes.

With Johnson pushing for the creation of a debt commission, over 100 organizations have become co-signers on Nov. 8 correspondence to Congress opposing the legislative proposal.

Aging groups begin to mobilize

While the Social Security Trust Fund Report, released in April 2023, warned that Social Security funds will become depleted in 2033, making the program totally insolvent in 2034 when beneficiaries could only receive about 80 percent of their scheduled benefits, the cosigners say the program’s projected short falls are “manageable by size and still a decade away, are fully understood.”

“In this Congress alone, several legislative proposals that do just that have been introduced with numerous cosponsors. The only reason to make changes to Social Security via a closed-door commission is to cut already modest earned benefits — something the American people overwhelmingly oppose — while avoiding political accountability, say the co-signers.

“Congress already has a process to confront the federal debt. That process is known as reconciliation. Revealingly, Social Security cuts are excluded from the reconciliation procedure, because, as previously stated, the program is totally self-funded, cannot pay benefits or associated costs without the revenue to cover the costs, has no borrowing authority, and, therefore, does not add a penny to the deficit. Consequently, if a debt commission with jurisdiction over Social Security were to be formed, its purpose would be clear: to cut its modest benefits, while avoiding political accountability,” warn the cosponsors.

But the shortfall is real

In an article in Money magazine, the writer notes, “Taxpayer funds cover the bulk of Social Security payments, but if the program’s reserves run dry, beneficiaries would face immediate 20% cuts to their checks come 2034. Any decrease to Social Security payments would likely be extremely unpopular, considering they’re a major source of retirement income for tens of millions of people.” According to a new report from the American Academy of Actuaries, the longer the issue is put off, the harder it will be to address the looming shortfall.

The Third Rail of national politics

According to AARP research, “85% of older Americans, regardless of party, strongly oppose targeting Social Security and Medicare to reduce federal budget deficits. Specifically, the survey found that 88 percent of Republicans, 79 percent of Independents, and 87 percent of Democrats strongly oppose cutting Social Security. Similarly, 86 percent of Republicans, 80 percent of independents, and 88 percent of Democrats said they strongly oppose cutting Medicare.”

Washington insiders consider Social Security to be the “third rail of a nation’s politics”, a metaphor coming from the high-voltage third rail in some electric railway systems. Stepping on it usually results in electrocution and the use of the term in the political arena refers to “political death”.

Next November, can the GOP politically survive stepping on the third rail by targeting the nation’s most popular social welfare programs (Social Security and Medicare) for adjustments to reduce the federal budget deficit? When the dust settles after November, 2024 elections, we’ll see if younger voters, who have the most to economically lose, view Social Security and Medicare as a key issue influencing their vote and “untouchable.”

We’ll see.

Modest Social Security COLA increase seen as chump change by some

Published in RINewsToday on October 16, 2023

Last week, the Social Security Administration (SSA) announced that Social Security and Supplemental Security Income (SSI) benefits for more than 71 million beneficiaries will increase 3.2% in 2024, about $59 per month starting in January. The 2024 payment declined from last year’s 8.7%, but that had been the highest in four decades. And, its higher than the average 2.6% increase recorded over the past 20 years.

The Social Security Act determined how the cost-of-living adjustment (COLA) is calculated. Enacted on August 14, 1935, the Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

More than 66 million Social Security beneficiaries will see that COLA increase 3.2% beginning in January 2024, and increased payments to approximately 7.5 million people receiving SSI will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits).

“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” observes Kilolo Kijakazi, Acting Commissioner of Social Security in an Oct. 12 statement announcing this year’s COLA increase.

According to SSA, some other adjustments that will also take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Advocacy groups on aging talk turkey about COLA

“The annual COLA is a reminder of Social Security’s unique importance. Unlike private-sector pension plans, whose benefits erode over time, Social Security is designed to keep up with rising prices, noted Nancy Altman, President of the Washington, DC-based Social Security Works (SSW), in response to SSA’s COLA announcement.

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” said Jo Ann Jenkins, AARP chief executive. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” she added, stressing that Social Security has been the foundation for financial security for hundreds of millions of retirees. “SSA’s COLA announcement shows that it’s continuing to deliver on this promise,” she says.

However, Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare charges, “While we are grateful that Social Security is the only major retirement program with a built-in cost-of-living adjustment, the current formula for determining COLAs is inherently flawed. SSA’s current COLA formula doesn’t truly reflect the increase in prices for the goods and services that beneficiaries rely on.”

According to Richtman, the 3.2% 2024 COLA only represents a modest $59 increase in the average monthly benefit for retired workers, and that’s before deducting the projected increase in the 2024 Medicare Part B premium of about $10 per month. Because of this the average retirement beneficiary will receive a net COLA of about $50.

Richtman notes, “That is not enough for a tank of gas or half a week’s worth of groceries in many states. The net COLA will barely cover one brand-name prescription co-pay for some patients.”

Last year, Richtman noted that the COLA of 8.7% was unusually high, the highest in some 40 years. But post-pandemic inflation was also at record highs, he said, noting that historically, COLA’s have been relatively low. In fact, the COLA has been ZERO; three times since 2009.

“Seniors deserve an accurate COLA formula that accounts for the impact of inflation on their living costs. That is supposed to be the entire purpose of a COLA. The current formula measures the impact of inflation on urban wage earners and clerical workers. How is that a reasonable formula for seniors? Seniors have different spending patterns than urban wage earners & clerical workers,” asks Richtman.

Richtman notes that seniors spend more than other age group on expenses like housing, long-term care, and medical services. “We strongly favor the adoption of the CPI-E (Consumer Price for the Elderly) for calculating COLAs. The CPI-E would more accurately reflect the impact of inflation on the goods and services seniors need, he believes.

The CPI-E is included in both major pieces of legislation to expand and protect Social Security that have been introduced in this Congress: Bernie Sanders’ Social Security Expansion Act and Rep. John Larson’s Social Security 2100 Act. We have endorsed both of those bills as part of our commitment to boosting Social Security for current and future retirees. It’s past time for Congress to act,” says Richtman.

Although the 3.2% COLA is well above the 2.6% average over the past 20 years, a newly released retirement survey released on Oct. 12, 2023, by The Senior Citizens League (TSCL) indicates that seniors are pessimistic about their financial well-being in the upcoming months and very concerned about growing calls on Capitol Hill for Social Security cuts. Sixty-eight percent of survey participants report that their household expenses remain at least 10 percent higher than one year ago, although the overall inflation rate has slowed. This situation has persisted over the past 12 months.

According to TSCL’s latest retirement survey, worry that retirement income won’t be enough to cover the cost of essentials in the coming months is a top concern of 56 percent of survey respondents. Social Security benefit cuts are an even bigger concern, ranked as the number one worry by nearly 6 out of 10 survey participants, or 59%. Over the past year, benefit cuts and trims have affected a large percentage of older Americans low-income households, individuals who can least afford them.

A year ago, TSCL warned that higher incomes due to the 5.9% and 8.7% COLAs in 2022 and 2023 could potentially affect eligibility for low-income assistance programs such as SNAP and rental assistance. Earlier this year, federal emergency COVID assistance for SNAP (food stamps) and Medicaid also ended. Surveys conducted in 2022 and this year suggest that significant numbers of lower-income older households have lost access to some safety net programs over the past 12 months, the survey finds.

A Final Note…

Social Security plans to start notifying beneficiaries about their new COLA amount by mail starting in early December. Individuals who have a personal “my Social Security account” can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice—instead of waiting for them in my Social Security.

People will need to have a “my Social Security account” by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.

For details about SSA’s 2024 Changes, go to: https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf.