The Social Security Administration is slashing its workforce — a looming 12% staff cut sparks fears of massive benefit delays for retirees

How Social Security is changing

The SSA’s prior acting commissioner, Michelle King, was recently replaced after clashing with DOGE over access to Social Security records. She was replaced by Leland Dudek, a mid-level SSA employee who had been on administrative leave for aiding DOGE.

“The agency plans to reduce the size of its bloated workforce and organizational structure, with a significant focus on functions and employees who do not directly provide mission critical services,” the SSA announced in a press release. The release also said its regional structure of 10 offices is “no longer sustainable,” and it will “reduce the regional structure in all agency components down to four regions.”

While the SSA is offering early retirement and voluntary separation incentives (also known as buy-outs) to employees, it’s likely that some workforce reductions will come from layoffs. For example, by shuttering its Office of Civil Rights and Equal Opportunity, 140 workers have been placed on administrative leave.

Musk said on X that his goal of auditing the SSA was to “stop the extreme levels of fraud taking place, so that it remains solvent and protects the Social Security checks of honest Americans!”

As an example of fraud, he’s pointed to Social Security recipients in the SSA database who are 150 years old.

However, in a 2023 report, the SSA’s Office of the Inspector General found that — although there were 18.9 million Social Security numberholders in the database over 100 years old with no data about their death dates — “almost none of the 18.9 million numberholders currently receive SSA payments.”

Another goal of the Trump administration is to crack down on overpayments to save an estimated $7 billion over the next decade, with the SSA announcing that it would withhold 100% of benefits from overpaid beneficiaries until they paid back their debt — even if the overpayment was a mistake on the part of the SSA. Previously, the SSA withheld 10% of benefits for overpayments.

The richest 1% use an advisor. Do you?

Wealthy people know that having money is not the same as being good with money. WiserAdvisor can help you shape your financial future and connect with expert guidance . A trusted advisor helps you make smart choices about investments, retirement savings, and tax planning.

Try Now

What does this mean for you?

The SSA is already plagued with long wait times — and those are expected to get even longer.

“We’re at a 50-year staffing low, and we’re serving the highest number of beneficiaries we’ve ever had in the history of this agency,” Rich Couture, a spokesperson for the American Federation of Government Employees’ Social Security General Committee, told CNN. “All of this will adversely undermine the ability of SSA to fulfill its responsibilities to the American people for the provision of Social Security benefits.”

For example, any beneficiaries being overpaid by the SSA who suddenly stop receiving checks will have to contact the SSA to negotiate paying back their overpayment either via the toll-free number or at their local office. But as the workforce is reduced, local offices shutter and hold times increase for the toll-free number, it could take much longer to resolve such issues.

Nancy Altman, president of Social Security Works, an advocacy group for the program, said in a statement that these reductions “will deny many Americans access to their hard-earned Social Security benefits” as field offices close and wait times for the 1-800 number soar. Musk has also indicated he wants to replace workers with AI chatbots.

“Contrary to what Elon Musk and his acolytes may believe, AI chatbots are no substitute for in-person service from a human being,” said Altman in her statement. “Americans apply for Social Security benefits at the most vulnerable times of their lives. Moreover, many people who seek information may have trouble articulating or even knowing what questions they need to ask.”

Along with its headquarters in Baltimore, Maryland and 10 regional offices, the SSA has a nationwide network of about 1,200 field offices. On average, 170,000 Americans visit and 250,000 call a field office every day, whether it’s to file a claim, ask questions or update information.

It’s safe to say countless Americans will feel the impact of the SSA staff cuts, with the potential for many questions to be left unanswered.