Social Security is one of the most important programs in the United States, providing benefits to nearly 64 million people. For many retirees, it represents a crucial source of income, especially for those who have reached age 65 or older. As the number of people relying on these payments increases, so do concerns about the sustainability of the system.
In the coming years, the program is expected to face significant financial challenges. One of the main problems is that Social Security will begin to pay out more money in benefits than it collects through payroll taxes, its main source of revenue. This situation is worrisome for millions of Americans, as it puts the stability of the program at risk for the foreseeable future.
Adding to the problem is criticism of the program’s financial management. A former employee of the Social Security Administration has revealed significant errors in the issuance of payments, resulting in millions of dollars in losses for the agency. These revelations suggest that SSA is not doing enough to keep the resources it manages under control, further affecting its solvency.
The Problem of Improper Social Security Payments
One of the factors that is making the situation worse is the increasing number of incorrect payments made by the Social Security Administration (SSA). Avram Sacks, a former SSA employee, has been an outspoken critic of the overpayments, attributing them to simple errors and even fraud in some cases. According to a 2024 report from the Office of Inspector General, between 2015 and 2022 the agency made nearly $72 billion in incorrect payments, most being overpayments.
Although SSA has the right to recover these funds, it is a complicated process. At the end of tax year 2023, SSA had yet to recover more than $23 million in overpayments. According to Yahoo, all of these problems are a main issue to keep in mind about the Social Security payments nowadays.
Does Social Security need more oversight?
According to the Social Security Trustees report, the program’s funding could run out by 2035, resulting in a 25% reduction in benefits. This cut would affect millions of retirees who rely heavily on the program for their livelihood. Currently, a significant percentage of people over age 65 rely on Social Security to cover 50% or more of their income.
To prevent the problems from getting worse, SSA has begun reviewing its overpayment procedures and is working on new ways to obtain wage data that will help prevent these errors. Although overpayment prevention will not completely solve the program’s financial problems, it is an important step toward protecting the benefits of millions of retirees.