Alexandria Ocasio-Cortez, often called AOC, is a Democratic member of the U.S. House of Representatives from New York. She is widely known for her role in shaping progressive economic policy, including debates around wages, health care, taxes, and retirement security.
Social Security reform has been a consistent focus for her because she believes the program has failed to evolve and now falls short of setting oneself up for retirement. Here’s everything you need to know about why Social Security isn’t keeping up, her proposal to fix that, and why her message is resonating with voters.
Why AOC says Social Security is “not keeping up with reality”
AOC argues that Social Security was designed for a very different economy and no longer reflect’s senior needs. While Social Security benefits remain an essential source of retirement income, she believes that current benefit levels and funding rules must be updated to match today’s economy.
In public comments responding to criticism of Social Security, she has stated that the program is one of the most successful anti-poverty programs in American history. However, she warned that historical success isn’t sufficient for today’s retirees.
When Elon Musk called Social Security “the biggest Ponzi scheme of all time” during an interview with podcaster Joe Rogan, AOC pushed back. She stressed that seniors already struggle to live on benefits that often fail to cover basic expenses like housing, health care, and food, while billionaires like Elon Musk continue to push for more tax cuts and reduced government spending.
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Benefit levels and the cost-of-living gap
One of the core shortcomings she highlights is that Social Security benefits often do not keep pace with real-world living costs. Annual cost-of-living adjustments (COLAs) are tied to inflation metrics. However, the metrics behind the COLA increases may not reflect how retirees actually spend money, particularly on healthcare and housing.
AOC has pointed out that many retirees are forced to stretch fixed benefits across expenses that rise faster than official inflation measures. In interviews and social media posts, she has argued that this disconnect leaves seniors vulnerable, even after decades of paying into the system.
For retirement planning purposes, this concern aligns with what many retirees experience. Social Security is a reliable income source for seniors, but rarely sufficient on its own. In addition to monthly Social Security checks, seniors often rely on pensions, part-time work, investments, and other income sources to pay their monthly bills.
Funding rules that exempt high earners
Another issue she frequently raises is how Social Security is funded. Payroll taxes currently apply only to wages up to an annual cap, meaning income above that level is not subject to Social Security taxes. In 2026, the maximum taxable wages is $184,500.
AOC has argued that this structure allows high earners to contribute a smaller share of their income than middle- and lower-income workers. She has stated that the wealthy need to chip in to keep the program strong and sustainable.
This argument resonates with voters who worry that Social Security will run out of money and that future benefits will be reduced without changes to funding.
The Social Security 2100 Act and modernization efforts
AOC has publicly supported legislative efforts to expand and modernize Social Security, including the Social Security 2100 Act. This proposal aims to strengthen the program by increasing benefits, adjusting COLA calculations, and applying payroll taxes to higher income levels. The bill also includes provisions intended to improve benefits for long-term low earners and surviving spouses.
Why her message resonates with retirees and workers
Many voters connect with AOC’s message because it reflects their own experiences. Rising rents, medical premiums, and longer lifespans make it harder for the average retiree to pay their bills. When Social Security was originally designed, retirement looked very different, pensions were commonplace, and workers didn’t live as long.
While AOC’s comments are critical of Social Security, she’s arguing for strengthening it to ensure benefits will be there for today’s retirees and future generations of workers.
Bottom line
Whether you like her or hate her, AOC’s critique of Social Security reflects concerns shared across the political spectrum. Social Security remains an essential part of a senior’s retirement plan, but it often falls short of covering today’s retirement expenses. She focuses on ensuring retirees have adequate benefits and that the program survives by raising income limits that exclude many high-income earners from paying their fair share. Whether or not proposed reforms become law, understanding these debates helps retirees and future retirees better plan for how Social Security fits into a realistic income strategy.
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Author Details
Lee Huffman
FinanceBuzz writer Lee Huffman is a former financial planner and corporate finance manager who now writes about early retirement, credit cards, travel, insurance, and other personal finance topics. He enjoys showing people how to travel more, spend less, and live better. When Lee is not getting his passport stamped around the world, he’s researching methods to earn more miles and points toward his next vacation.
