Former Social Security Commissioner has bold warning for retired Americans

Social Security payments may be at risk soon.

Mar 5, 2025 - 16:39

Former Social Security Commissioner has bold warning for retired Americans

Social Security benefits have faced the risk of insolvency for decades.

Strong inflation and low wages in the 1980s reduced contributions to the Social Security trust, prompting the federal government to increase Social Security taxes from 10.8% to 12.4%, and temporarily delay Cost of Living Adjustments (COLA).

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Now that the aging Baby Boomer generation is enrolling in Social Security en masse, the trust is depleting faster than it can be replenished, and potential regulatory cuts threaten the program's longevity.

Recent cuts to federal funding and large-scale federal employee layoffs could threaten the efficiency of the Social Security Administration, delaying benefits for many retirees dependent on those payments.

Former Social Security Commissioner Martin O'Malley predicts there may be disruption in the near future and that retirees should start preparing now.

A woman is seen sitting at a kitchen table with a calculator looking at the Social Security benefits she will receive in retirement. *Millions of seniors rely on Social Security to make ends meet, especially given the rising cost of living.*
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Social Security payments may be delayed for 54 million retirees

In 2024, nearly 69 million Americans received Social Security benefits, 54 million of which were retirees. However, more than two-thirds of seniors rely on their Social Security payments to cover necessities and the cost of living.

The Social Security Administration trust fund — funded by taxes — is now already at risk of becoming insolvent by 2034, as the dwindling working population cannot replenish the trust enough to cover Baby Boomers' benefits. Benefits would need to be cut 23% to keep the program afloat, per the Congressional Budget Office.

However, proposed tax cuts from the Trump administration could expedite insolvency by three years, moving it up to 2031.

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Former Biden Social Security Commissioner Martin O'Malley has raised concerns that recent staffing cuts to most federal agencies could exacerbate the Social Security Administration's efficiency, adding to the looming solvency concerns.

“I think for the first time in 90 years, we’re going to see an interruption of benefits,” O’Malley told CNBC. “I hope that doesn’t happen, but I believe it will. And at the very least, you are going to see wait times skyrocket. People should start saving now."

Seniors reliant on Social Security payments to cover rising housing, healthcare, and groceries expenses may see a delay in benefits.

Federal staffing cuts could create delays in Social Security payments

Widespread federal employee layoffs have been implemented by the Trump administration in cost-cutting initiatives. Though cutting federal programs has been proposed as part of an effort to increase efficiency, O'Malley notes that the measure will likely hurt the effectiveness of the distribution of Social Security benefits.

“You’re talking about an agency that already has been operating at a 50-year low in staffing, [the exit of experienced senior staff] could create a super high risk of collapse and system failure. It’s a very fragile system,” O’Malley said.

Over 17 million Americans over 65 are economically insecure, with an income well below the poverty line. Disrupting or delaying Social Security payments could threaten the well-being of millions of seniors.

Though it remains unknown if large-scale staffing cuts will target the Social Security Administration, O'Malley warns seniors to prepare themselves financially anyway.