The Social Security Administration plans to lay off 7,000 workers, bringing its workforce headcount to about 50,000, according to a recent news release.
If there’s any government program that directly affects the lives of a wide swath of Americans, it’s Social Security. According to the Social Security Administration, almost 69 million Americans will receive a Social Security benefit every month in 2025. That’s about $1.6 trillion in benefits paid during the year.
Former SSA commissioner Martin O’Malley, a Democrat, told CNBC that workforce cuts could result in a system collapse. However, Republicans say the cuts are designed to reduce costs and eliminate waste.
“It is truly unknown at this time how Social Security Administration cuts may impact Social Security beneficiaries,” said Krisstin Petersmarck, president and founder at New Horizon Retirement Solutions in Bloomfield Hills, Michigan, in an email. “One side says there will be delays, while the other side says the cuts are not related to mission-critical services,” she added.
For Social Security recipients and those planning to claim their benefits soon, here are some points to keep in mind regarding the cuts.
Will Social Security Benefits Be Delayed?
According to a January 2025 report from the nonpartisan Center on Budget and Policy Priorities, nearly 40% of adults aged 65 and older would have incomes below the official poverty line without Social Security benefits. In many cases, any delay in processing benefits would have serious consequences.
Politicians have generally considered Social Security an issue they don’t want to tamper with, as changes risk alienating voters. For that reason, it’s unlikely that benefits would be delayed, wrote Said Israelov, financial planner and wealth manager at Israelov Financial in San Francisco, in an email.
“Millions of retirees across the nation rely on various government benefits for a living, and any hold-up on Social Security checks will generate pushback across the political spectrum,” Israelov said.
He added that retirees and their grown children, who may have to financially support aging parents, would suffer.
[Related:Trump Proposed Eliminating Social Security Taxes. Here’s the Bill That Could Make It Happen.]
Navigating Longer Processing Times
Retirees who haven’t yet claimed their benefit but who anticipate delays should act quickly, Petersmarck said.
“Take the time to create an online account, if you do not already have one established, and utilize the online portal,” she said.
Delays may be more likely to affect those not yet taking Social Security, said Chad Gammon, owner of Custom Fit Financial in Cedar Rapids, Iowa, in an email.
“It is possible that your benefits could be delayed if you are a new applicant or need assistance if you had an issue,” he said. “If you are currently receiving Social Security, then it should not have a delay.”
[Read: How to Correct Your Social Security Earnings Record.]
Local Social Security Office Closures Due to DOGE Cuts
Since the Trump administration announced cuts to the Social Security Administration, at least 10 offices nationwide are in the process of shutting down. That will likely make it more challenging for Americans to visit an office for in-person transactions.
Sending out benefits is not the only function of the Social Security Administration, and cuts to its workforce may result in the delays of other services, including:
— Tracking workers’ lifetime earnings to calculate Social Security benefits.
— Issuing Social Security numbers.
— Administering Social Security benefits for people who are disabled or unable to work.
— Overseeing initial Medicare enrollment.
— Investigating Social Security fraud and identity theft.
— Offering tools and resources to help people estimate how benefits fit into retirement plans.
— Managing appeals for denied disability or retirement claims.
— Overseeing programs such as Survivors Benefits for widows, widowers and children of deceased workers.
In addition to these services, it’s common for people to call or visit a regional Social Security office for help with lost Social Security cards, incorrect benefit amounts and direct deposit issues.
The SSA’s customer service wait times were increasing prior to cuts, and further staffing cuts could exacerbate these issues. “It is already challenging for Americans to contact the Social Security Administration,” Petersmarck said. “So, to say it will be more difficult sounds like a fair assumption.”
However, she noted, it’s too soon to understand how the cuts will fully impact citizens.
“The best advice is to find an advisor who specializes in Social Security, as they will likely be able to answer many of your questions,” Petersmarck said.
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This Is How Trump’s Social Security Layoffs Could Affect Your Benefits originally appeared on usnews.com
