Elon Musk has once again made headlines in the U.S. — this time for comments about Social Security benefits. In a recent interview on Fox News, he said that his idea of a new “Department of Government Efficiency” (DOGE) would help increase Social Security payments by removing fraud and waste from the system.
While the idea of improving government systems sounds good, experts are not convinced. Many retirement specialists say Musk’s claims show a misunderstanding of how Social Security really works, and no actual reforms have been announced.
Can Elon Musk Really Increase Social Security Payments?
According to Musk, the system can save money by cutting down on fraud, abuse, and waste, and that extra money could be used to give more to the people who truly deserve it. But experts say this is a wrong assumption.
Here’s Why Payments Likely Won’t Go Up:
Chris Orestis, a retirement expert and head of Retirement Genius, says there’s no solid proof that large amounts of Social Security money are being misused. Major investigations and reports — including those from The New York Times and Associated Press — have shown that the level of fraud is not enough to make a big financial difference.
Also, even if some money was saved, Social Security benefits can only increase through COLA (Cost-of-Living Adjustments), which are based on yearly inflation. This is written into law, and no one — not even Musk — can change it without Congress.
How Are Social Security Benefits Really Calculated?
Martha Shedden, president of the National Association of Social Security Registered Analysts, explains it clearly: Social Security payments depend on your work history and lifetime income, not how much money is available in the system or how many workers are at the SSA.
So even if Musk finds a way to make the Social Security office more efficient, it won’t change how payments are calculated. To do that, Congress would need to change the law, and right now, no such changes are being discussed.
What Needs to Happen to Truly Increase Benefits?
The Social Security system is facing serious long-term issues. According to the 2024 report from the Social Security and Medicare Trustees, the program can only pay full benefits until 2035. After that, payments could drop by 17% unless changes are made.
This is because the number of people receiving benefits is growing fast, while income from payroll taxes — which fund the program — is not rising at the same speed.
Experts suggest a few possible solutions:
- Remove the income cap: Currently, only income up to $176,100 is taxed for Social Security. Removing this cap could bring in more money.
- Raise the retirement age: Especially for younger workers, this could help reduce future payment pressure.
- Limit payments for the wealthy: Some believe that very rich people, like Elon Musk, shouldn’t receive Social Security at all. As Orestis puts it, “Does Elon Musk really need to collect Social Security in the future?”