Will Baby Boomers Drain Social Security Resources?

Social Security is an essential means of financial support for many older Americans. With so many baby boomers receiving Social Security payments, will there be enough money in the program for future generations?

Key Takeaways

• Social Security provides financial support to retired Americans and Americans with disabilities.
• The baby boomer generation is so large that it is putting a strain on Social Security.
• Raising the retirement age and raising Social Security taxes are two ways to address this growing demand for benefits.
• Some Americans are nervous about proposed changes to Social Security by the Trump administration, but supporters see the changes as making Social Security more efficient.

Changes Needed

The Social Security trust fund will be able to pay 100% of benefits until 2033 and then will only be able to pay 79% of benefits. Changes to Social Security will be needed within the next few years to bolster the program’s funds.

“The number of beneficiaries compared to the number of workers will increase over the next decade. There will have to be some changes with the way Social Security will work,” says Chuck Czajka, a certified Social Security claiming strategist and founder of Macro Money Concepts.

Those changes could include raising the retirement age or raising Social Security taxes.

“One potential solution is to raise the retirement age to age 70. Boomers are working longer, which has helped Social Security funds from being depleted,” Czajka says. “Adjustments will have to be made, like increasing the taxes or raising the retirement age. I believe these changes can shore up Social Security for future generations.”

Job Cut and Retirement Age Concerns

Plenty of people are nervous about the changes to Social Security that the Trump administration may be proposing, including slashing jobs at Social Security.

“With Trump and the Department of Government Efficiency (DOGE) making swift cuts to the program and decreasing the workforce, beneficiaries will begin to have a delayed retirement process and not get the customer service they need,” says Colin Ruggiero, co-founder of DisabilityGuidance.org. “The Social Security Administration (SSA) is already overwhelmed as it is, so processing claims with a reduced workforce could be catastrophic. If there is a delay in benefits for those who collect them, millions will be affected financially. There are over one million disability claims that have yet to be processed, and beneficiaries are racking up debt to make ends meet.”

Ruggiero isn’t alone in his concerns. About 51% of surveyed adults are worried that the Trump administration could make changes to Social Security that would negatively affect them, and 60% of adults believe the Trump administration will attempt to raise the retirement age for Social Security, according to Taylor Shuman, an editor at SeniorLiving.org.

But Czajka doesn’t see the potential changes as negatives for Social Security.

“The Trump administration’s recent moves could actually benefit the Social Security trust fund,” Czajka says. “Social Security will be made more efficient.”

The Bottom Line

To meet the growing demands of the baby boomer generation, a change will have to be made to Social Security, whether it is lifting the retirement age to 70 or raising Social Security taxes. So while baby boomers haven’t drained Social Security completely, the number of baby boomers collecting Social Security is a challenge.

Whether changes are made during the Trump administration or a future administration remains to be seen. In the meantime, Social Security will continue to provide a vital financial lifeline to millions of Americans.