In the United States, Elon Musk is no stranger to bold statements and controversial ideas. This time, he’s made headlines again after a Fox News interview, where he introduced his plan to improve the Social Security system through a new initiative called the “Department of Government Efficiency” (DOGE).
According to Musk, these reforms will remove fraud and waste in the system and, in turn, ensure that legitimate Social Security beneficiaries get more money. While this idea has created a buzz online, experts in retirement and public policy are not fully convinced.
Can Efficiency Really Lead to Higher Social Security Benefits?
On the surface, Musk’s idea of cutting government waste sounds appealing. But experts say the reality is more complicated.
Chris Orestis, retirement expert and president of Retirement Genius, said that there’s no strong evidence showing large amounts of Social Security money are being wrongly paid out. Media reports from trusted sources like The New York Times and Associated Press also confirm that fraud and abuse in the system are relatively low.
And even if extra funds were found, that would not automatically lead to higher benefit payments.
How Are Social Security Benefits Really Increased?
As experts like Orestis explain, Social Security benefits can only go up through the Cost-of-Living Adjustment (COLA). This adjustment is done once a year, based on inflation rates. It ensures retirees don’t lose their purchasing power as prices rise.
So, no matter how much money is saved through reforms, benefit checks can’t increase unless inflation rises or Congress changes the law.
Martha Shedden, president of the National Association of Social Security Registered Analysts, added that Musk seems to misunderstand how benefits are calculated. The amount you get from Social Security depends mainly on:
- Your lifetime earnings
- The age you start claiming benefits
- The COLA, updated annually
Nothing in this formula is directly tied to the number of government employees or how efficient the department is.
What Would Actually Increase Social Security Payments?
According to the 2024 Social Security and Medicare Trustees report, the system can only continue paying full benefits until 2035. After that, without changes, payments might be cut by 17% due to a gap between income (mainly from payroll taxes) and the rising number of beneficiaries.
To fix this, experts suggest:
- Raising the cap on taxable income (currently $176,100)
- Increasing the retirement age for younger generations
- Adding more funding into the system from other sources
Some even argue that wealthy individuals like Elon Musk should not receive Social Security, as they don’t need the support. “Does Elon Musk really need to collect Social Security in the future?” Orestis asked.
While Elon Musk’s DOGE reforms sound innovative and well-meaning, Social Security doesn’t work like a private company. Removing inefficiencies is good, but it won’t automatically increase checks for retirees. Only Congress has the power to change Social Security laws and how benefits are calculated.
If real change is to happen, it will need more than ideas—it will require legal reforms and financial investments to make the system stronger for future generations.