Retirement Social Security

AARP Warns Americans on Major Social Security Problem

Social Security's funding crisis is coming to a head.

By Maurie Backman

Edited by Kristy DeSmit

Updated March 25, 2026

Add Us On Google

For many older Americans today, Social Security, coupled with savings, is the ticket to a stress-free retirement. But some seniors only have Social Security to rely on for income.

In 2024, AARP reported that 20% of Americans 50 and over have no retirement savings, so people in that situation need Social Security to make ends meet. But now, AARP is sounding alarms about a major Social Security crisis. The program is at risk of having to cut benefits, and that's not the only issue.

Let's review some of the problems Social Security is facing today and why lawmakers need to address them immediately.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

AARP is very worried about Social Security

There are a number of problems with Social Security that AARP has flagged. First, the program's Old-Age and Survivors Insurance (OASI) Trust Fund, which pays retirement benefits, is getting closer to being depleted. The Social Security Trustees put its depletion date at 2033 last year, while the Congressional Budget Office's timeline, released more recently, has the OASI trust fund running out one year sooner.

Part of the reason that the timeline has been accelerated stems from the passing of the One Big Beautiful Bill Act (OBBBA) in 2025. The OBBBA reduces overall tax liability for Social Security beneficiaries. As a result, the program is set to collect less revenue, which could push up its insolvency date. Social Security Chief Actuary Karen Glenn warned last year that the OBBBA could cost Social Security's combined trust funds $168.6 billion through 2034.

AARP wrote last year that without congressional intervention, Social Security benefits could be reduced by almost 17% in the next decade. The Social Security Trustees say that once the OASI Trust Fund runs dry, benefits could be cut by 23%.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Staffing levels and customer service issues

AARP also flagged the fact that staffing cuts are an issue for Social Security. The group stated that the Social Security Administration (SSA) lost over 6,000 employees in 2025, causing lags in customer service. It also said the SSA moved about 1,000 field office employees to its national call center, thereby taking local resources away from seniors.

These findings are consistent with the Center for American Progress's early 2026 analysis, which found that SSA staffing decreased by 6,645 employees between January and November 2025, a drop of more than 11%. That same analysis confirmed that some SSA field offices lost 25% or more of their staff, while some rural field offices shuttered completely.

Social Security recipients stretched thin

Making matters worse for Social Security recipients is that the cost of Medicare Part B rose by almost $18 a month in 2026. That increase is eating into seniors' 2.8% cost-of-living adjustment (COLA).

In a September 2025 AARP survey, 77% of respondents said a roughly 3% COLA would not be enough to keep up with rising prices. That sentiment was consistent across political affiliations.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

AARP calls for bipartisan action

AARP recognizes how essential Social Security is to the financial well-being of American seniors. To that end, the group is calling on bipartisan action to address the program's main issues.

Specifically, AARP is imploring lawmakers to:

Strengthen Social Security and Medicare and prevent cuts
Lower the cost of prescription drugs, which often strain retiree budgets
Expand opportunities for financial stability in retirement
Close the widening gap between lifespan and health span (meaning, how long people live versus how long they're able to remain in good health)

AARP has also been advocating for better customer service from Social Security. In 2025, the group successfully fought proposed changes that would have worsened customer service. AARP helped defeat the SSA's proposal to cut routine telephone services, and it fought a proposal to force beneficiaries to submit certain forms online instead of by phone.

Better customer service from Social Security isn't just a matter of convenience. For some seniors, it could spell the difference between being able to file a timely benefit claim or not.

Bottom line

The SSA has some major issues to address, as do lawmakers. While the SSA can, and should, work within its budget to improve customer service, lawmakers can move to allocate more funding to the agency for that purpose. But more so than that, lawmakers truly need to start working on solutions to prevent broad benefit cuts that could hurt current seniors and future beneficiaries.

Meanwhile, workers and retirees today should stay on top of their Social Security accounts to know what benefits to expect. Creating a my Social Security account makes it possible to track earnings and get estimates of future monthly benefits in retirement.

It's also important to plan for potential Social Security cuts in case lawmakers aren't able to stave them off. For current retirees, that could mean boosting income with part-time work and making spending cuts. For pre-retirees, it means saving consistently for retirement and investing strategically to supplement Social Security.

More from FinanceBuzz: