Social Security benefits are likely a key piece of your retirement plan. But Marjorie Taylor Greene’s recent warning that Social Security and
Medicare are quickly headed toward insolvency has many retirees worried. The
former Congresswoman wrote a lengthy post on X detailing what she believes may
happen once the programs are insolvent, and it paints a dire picture for
retirees who depend on the programs.
Posts on X aren’t always accurate, so here are the facts on these programs’
insolvency, the risk that retirees face, and what might need to be done to solve
the problem.
Greene’s warning about Social Security and Medicare
Greene warned that Social Security and Medicare may be insolvent by 2032, and
that the government may cut benefits that people have paid into their entire
lives. She predicted that first, Social Security may be taken away from the
rich, but within a few years it may also be taken away from the middle class.
She blamed the issue partially on the rapid growth of the national debt.
Greene highlighted the impact the benefit cuts could have on retirees. “Most
Americans don’t have any real savings for retirement so by that point not only
will most Americans not get Social Security checks, but they won’t have any real
retirement set up, and the value of the dollar will be so incredibly weak that
it will plunge most Americans into poverty,” she wrote.
“And both political parties are to blame. Both Republicans and Democrats are
doing this to Americans while Americans are too busy to notice,” wrote Greene.
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What the data says about Social Security insolvency
The Social Security Trustees’ 2026 report projects that the Social Security
trust fund may be insolvent by the fourth quarter of 2032. That’s one quarter
earlier than the Trustees projected in 2025. Once the fund is depleted, the
program’s revenue generated by payroll taxes may only be sufficient to pay 78%
of the total scheduled benefits.
Unless Congress acts to preserve the program, benefits would continue to be
paid, but payment sizes could be automatically reduced. Estimates put scheduled
benefit cuts at 22 to 24%; a 24% benefit cut would total a reduction of $500 in
monthly benefits on average. That’s more than what the average retired household
spends on groceries in a month.
What Greene gets right
Greene states that the programs may go “bankrupt,” which is overselling exactly
what may happen, since Social Security would still be partially funded by
payroll taxes, even though benefits could be partially cut. However, outside
financial experts have said that Greene’s underlying facts are largely accurate,
and a mid-20% cut could significantly impact retirees living on fixed incomes.
There’s conflicting data about how many retirees rely entirely on Social
Security for their income. According to a Senior Citizens league survey, 39% of
retirees, or about 22 million people, depend on Social Security for their entire
income. The Census Bureau estimates the figure to be just under 14%. Regardless,
a $500 monthly benefits reduction could be financially devastating for retirees
who depend on Social Security for their entire income, plus it could have a
major impact on retirees even if they have other income sources.
Potential Social Security fixes
There’s lots of conversation circulating about Social Security’s approaching
insolvency, and legislators have proposed numerous potential fixes. Congress
might raise the payroll tax cap so higher earners contribute more in payroll
taxes to the program, or Congress could adjust the tax rate so the general
public pays more in Social Security taxes.
It’s also possible that Congress might means test benefits, adjusting benefits
payments based on factors like recipients’ wages, wealth, or income. Congress
could also reduce initial benefits for new retirees to stretch the program’s
funding.
How soon might we see a fix
Greene’s post blamed Congress for the impending insolvency, noting that it’s
“the last thing they want to fix.” So far, Congress hasn’t demonstrated a
unified front in solving the Social Security insolvency issue, and it’s possible
that legislators might not arrive at a solution for some time.
The pressure is on, though, with just seven years until the projected shortfall.
The outcome depends on whether Congress acts before Social Security’s insolvency
and which solutions Congress ultimately decides to implement.
Bottom line
Congress still has options, and legislators are proposing numerous potential
solutions to solve the Social Security issue. Even so, it’s understandable for
retirees to be nervous, since the program’s future is uncertain and significant
cuts could strain budgets, especially for retirees on fixed incomes. Social
Security faces a long-term financial challenge, so be sure to watch for future
news about how Congress decides to address the issue.
In the meantime, consider stress testing your retirement plan by calculating
your monthly income and budget with reduced Social Security benefits. A
financial advisor may also review your retirement plan and help ensure that
you’re on track for
retirement.
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Author Details
Paige Cerulli
Paige Cerulli has covered personal finance for more than 15 years and writes about the money news readers can actually act on. In particular, she helps people claim what they are owed from class-action settlements, understand Social Security COLA changes and Federal Reserve rate moves, and make the most of everyday decisions around insurance, mortgages, and credit cards. Her work has appeared in U.S. News & World Report and Kiplinger.
