Elon Musk is known for making headlines — and this time, it’s not about rockets or electric cars. In a recent Fox News interview, Musk revealed a plan tied to a new initiative he calls the “Department of Government Efficiency” (DOGE). His claim? By cutting government waste and fraud, more money will be available for Social Security beneficiaries.
His statement quickly caught attention across the United States. Supporters praised the idea, while retirement experts and economists were more skeptical. The promise of boosting Social Security payments sounds great, but the truth about how the system works shows a different story.
Musk’s Idea: Cut Waste, Increase Payments
Musk’s plan is built on a simple idea: reduce fraud and inefficiency in the Social Security Administration (SSA), and use those savings to give more money to retirees. According to him, this would make the system more fair and give more support to people who actually need it.
While the idea of improving government efficiency sounds good in theory, experts warn that it may not lead to the results Musk expects.
What Do the Experts Say?
Retirement expert Chris Orestis, president of Retirement Genius, explains that fraud in Social Security isn’t as big of a problem as some people think. “There’s no strong proof that a large amount of money is going to people who don’t deserve it,” he said.
And even if some wasteful spending could be reduced, it wouldn’t automatically raise benefit amounts. That’s because Social Security payments are based on laws and formulas that are not tied to savings or budget cuts.
How Social Security Benefits Are Actually Calculated
According to Martha Shedden, president of the National Association of Social Security Registered Analysts, Musk seems to misunderstand how the system works. The amount a person receives in Social Security is based on their lifetime earnings, not how much money is left in the system or how many people are working at the SSA.
In fact, the only way benefits can increase for everyone is through a Cost-of-Living Adjustment (COLA), which is recalculated each year based on inflation — not on internal savings or reforms.
To change how benefits are calculated or increase payments outside of COLA, Congress would need to pass a new law. And at the moment, there’s no sign that such a change is being discussed.
Can Social Security Actually Afford Higher Payments?
The idea of increasing payments is nice — but is it realistic? According to the 2024 Social Security and Medicare Trustees Report, the current system can only pay full benefits until 2035. After that, if no major changes are made, benefits might drop by around 17% because income from taxes won’t be enough to cover costs.
This is mainly because the number of people receiving benefits is growing, while the money coming in from payroll taxes isn’t rising fast enough.
So, while cutting waste may help in small ways, it won’t fix the bigger problem: the system needs more money to stay healthy in the long run.
What Real Changes Could Help?
Experts agree on a few realistic steps that could support or even increase Social Security payments:
One idea is to remove the income cap on Social Security taxes. Right now, people only pay Social Security taxes on their income up to $176,100. Lifting that cap would mean high earners contribute more.
Another idea is to raise the retirement age for future generations, especially as people live longer and work later into life.
Some even suggest that extremely wealthy people — including Musk himself — could opt out of Social Security altogether. As Orestis pointed out: “Does Elon Musk really need to collect Social Security in the future?” Many agree that making the system more targeted could help those who need it most.
Elon Musk’s push to “fix” Social Security through government efficiency may sound good at first, but the reality is far more complex. Experts are clear: Social Security benefits are determined by laws, formulas, and long-term funding — not by cutting office expenses or trimming staff.
While reforms are needed, the real solutions involve increasing funding, adjusting the tax system, or changing retirement policies — all of which require congressional action. Musk’s ideas may spark conversation, but without legal changes, retirees shouldn’t expect their checks to grow anytime soon.
