Social Security Warning: 3 New Reports Point to Cuts and Delays - What You Need To Know

Millions of older Americans need their Social Security benefits for a stress-free retirement. But the program is facing a number of challenges.

Some of those challenges aren't a "today problem" per se. But other issues are immediately threatening near retirees' ability to get benefits or make ends meet.

Here are three different red flag issues plaguing Social Security, and what you can do about them.

Benefit cuts may be on the horizon

Social Security is facing a serious shortfall in the coming years as baby boomers exit the labor force in droves. The program's main source of revenue is money collected from payroll taxes. But as older workers stop paying into the system and start claiming benefits, Social Security will find itself under serious strain.

The Social Security Trustees reported last year that the program's Old-Age and Survivors Insurance (OASI) Trust Fund, from which retirement benefits are paid, will only be able to meet its financial obligations through 2033. From there, benefits could face a 23% cut.

If Social Security were to combine its OASI Trust Fund with its Disability Insurance (DI) Trust Fund, the program would be able to meet its financial obligation through 2034, per the Trustees' 2025 report. From that point onward, benefits could face a 19% cut. Combining the two funds would require lawmaker approval.

The Congressional Budget Office, meanwhile, more recently projected the depletion date of the OASI Trust Fund to 2032, making potential benefit cuts more imminent.

The nonpartisan Senior Citizens League says that a major Social Security cut could push many older Americans into poverty. The group found earlier this year that 73% of seniors would struggle to pay monthly bills in the face of benefit cuts.

Staffing shortages are hurting customer service

Potential benefit cuts aren't the only issue Social Security is dealing with now. The Social Security Administration (SSA) shed roughly 7,500 employees between January 2025 and January 2026, resulting in a loss of about 13% of its workforce, according to the Center on Budget and Policy Priorities.

Those staffing cuts included more than 3,000 employees who assist visitors to SSA field offices and take calls on the agency's 800 number. 

With fewer customer service representatives available to help navigate issues and benefit claims, near-retirees could face delays in getting their Social Security checks once they're ready to start collecting them. And even if the benefits themselves aren't delayed, the process of filing for them could become more painful than necessary.

2027 COLA projections leave much to be desired

Not only are current Social Security recipients facing potential benefit cuts, but next year's cost-of-living adjustment (COLA) may not be much to write home about. 

Following the release of the most recent Consumer Price Index, the Senior Citizens League put out an estimate on 2027's COLA. And as of now, it's calling for a 2.8% raise — the same amount seniors received in 2026.

This year, Medicare Part B premiums rose by $17.90 a month from last year. And the Medicare Trustees are projecting another Part B hike for 2027. If that increase is similar to this year's, and next year's COLA is the same 2.8% boost that Social Security received in 2026, seniors may find that they don't have much of a net raise to spend.

Coping with Social Security upheaval

None of these Social Security issues are easy to deal with. But there are steps you can take to cope with potential cuts, staffing issues, and a small 2027 COLA.

In the context of benefit cuts, the best thing you can do is increase your savings rate if you're still working, or delay retirement a few years if you're nearing that point and your IRA or 401(k) needs a boost. If you're already retired, it may be tough to build savings, but you can try to supplement your income with part-time work.

With regard to staffing issues, your best bet is to plan ahead if you're claiming benefits in anticipation of potential delays. Also aim to file online if you can. That may speed up the process compared to waiting for an in-person appointment.

Finally, if you're already collecting Social Security and you're worried next year's COLA will fall short, be mindful of your spending in the near term and try to make budget cuts if possible. Some of those cuts may have to go beyond canceling a streaming service or subscription. You may need to consider downsizing to a smaller home or relocating to a cheaper part of the country if money is very tight.

Bottom line

Social Security is a big part of many people's retirement plans. The program may be facing a host of challenges, but they're not all necessarily guaranteed to have a worst-case outcome.

Lawmakers may be able to prevent benefit cuts as they've done in the past. And as more lawmakers and agencies demand accountability from the SSA, some of its staffing woes could be resolved. Also, next year's COLA is by no means set in stone. And even if it only comes in at 2.8%, careful budgeting and planning could make a smaller raise easier to work with.

You May Also Like

Almost 80% of Americans Fear a Retirement Age Increase — Here’s the Real Reason Why

Read More

10 Smart Money Moves to Retire

Read More

The Easiest Way to Diversify Your Investment Portfolio With Fine Art

Read More

7 Brilliant Ways to Build Wealth After 40

Read More

5 Ways Seniors Are Throwing Away Money

Read More

Earn Up to 4.10% APY With The Best High-Yield Savings Accounts of April 2026

Grow your savings faster with these high-yield savings accounts

Read More

Have $150K+ in Assets? See If You Can Retire Early

Zoe Financial Benefits

• Get matched with vetted and fiduciary-certified financial advisors
• Take the mystery out of retirement planning
• Their matching tool is free

Find an advisor

Paid Non-Client Promotion

FinanceBuzz doesn’t invest its money with this provider, but they are our referral partner. We get paid by them only if you click to them from our website and take a qualifying action (for example, opening an account.)

---

Subscribe Today

Unlock the Best Banking Deals and Bonuses

From high-yield savings accounts to cashback checking and sign-up bonuses, we bring you the best banking offers to grow your money smarter.

or

SEE TOP BANKING OFFERS →

By submitting this form you agree to receive emails from FinanceBuzz and to the privacy policy and terms