Since taking on a leadership role within the newly formed Department of Government Efficiency (DOGE), Elon Musk has made a number of high-profile statements about Social Security—some of which have generated confusion and concern.

If you’re currently receiving Social Security benefits or planning to soon, it’s understandable to feel unsettled by the recent headlines. I’ve already had several clients reach out to me with questions, and you may be wondering what all of this means for your financial future.

To be fair, Social Security isn’t without its challenges. The Trump administration has already proposed cutting 7,000 jobs at the agency, with more reductions potentially on the horizon, and concerns about the program’s long-term solvency have existed for decades. That said, not all of the recent claims—particularly those related to alleged fraud—are supported by the facts.

To help you cut through the noise and feel more at ease, here’s a clear look at what’s been said, what the data shows, and what it means for your retirement plan.

Claim: Fraud in federal entitlement programs is costing taxpayers around $700 billion per year.

On February 4, 2025, Elon Musk posted on X (formerly Twitter), “Fraud in the federal government is closer to 10% of disbursements, so more like ~$700 billion per year.” However, this estimate significantly overstates the issue.

Improper payments do occur within federal programs, but the actual figures are far lower than the amount suggested. Social Security, in particular, has consistently demonstrated a high level of accuracy and oversight. From 2015 to 2022, the Social Security Administration’s Office of the Inspector General reported that less than 1% of payments were improper.

Looking more broadly, the federal government reported $236 billion in improper payments across all programs in 2023. This includes both overpayments and underpayments, and not all of it is the result of fraud. In fact, that total was down $11 billion from the previous year and remains well below Musk’s estimate.

Claim: People who are 150 years old are receiving Social Security benefits.

This claim, shared by Elon Musk during a February 2025 press conference, drew attention for its shock value—but it doesn’t reflect the reality of how the Social Security system operates.

While there are anomalies in the Social Security Administration’s (SSA) records, officials and independent experts have clarified that these do not indicate that individuals aged 150 are actively receiving benefits. Rather, these instances stem from outdated files where no date of death was ever recorded—not active disbursements.

A likely explanation, according to a Wired report, involves the SSA’s legacy computer systems, which still rely on COBOL, a programming language developed in the 1960s. In cases where a date of death is missing, the system may default to a placeholder date—usually one in 1875—which can make individuals appear far older than they are.

In fact, a 2023 audit by the SSA’s Office of the Inspector General found that 18.4 million individuals listed as over age 100 were not receiving benefits and had no earnings activity in more than 50 years. These records remained open due to the administrative cost of updating inactive files—not because payments were being sent out.

Claim: Democrats have been able to “buy voters” by luring them in with “government handouts” like Social Security.

During an appearance on Senator Ted Cruz’s podcast, Elon Musk suggested that government entitlement programs—specifically Social Security—are being used to attract and retain undocumented immigrants, implying this is a political strategy to gain votes. However, no evidence was presented to support this claim, and the facts tell a different story.

Undocumented immigrants are not eligible for most federal entitlement programs, including Social Security retirement benefits. Claims of widespread noncitizen voting are also not supported by the data. For instance, a study by the Brennan Center for Justice reviewed 23.5 million votes across 42 jurisdictions in the 2016 general election and found only 30 potential cases of noncitizen participation.

It’s also important to consider that undocumented immigrants often contribute more to public benefit programs than they receive. According to the Institute on Taxation and Economic Policy, undocumented workers paid an estimated $25.7 billion in Social Security taxes, $6.4 billion in Medicare taxes, and $1.8 billion in unemployment insurance taxes in 2022—despite being ineligible for many of the benefits those programs provide.

Claim: Social Security is “the biggest Ponzi scheme of all time.”

Elon Musk made this statement during an episode of The Joe Rogan Experience, drawing a comparison between Social Security and a Ponzi scheme—a type of fraudulent investment operation where returns are paid using funds from new participants rather than actual earnings.

While the comment may reflect a personal opinion, it’s an oversimplified and misleading analogy.

It’s true that Social Security faces long-term funding challenges. According to the 2024 Trustees Report, the program’s trust fund reserves are projected to be depleted by 2035. However, that doesn’t mean the program will cease to function. Even if no legislative action is taken, ongoing payroll taxes are expected to cover about 83% of scheduled benefits.

Unlike a Ponzi scheme, Social Security is a legally mandated, transparent program that has operated for nearly 90 years, paying out benefits reliably and helping millions of Americans maintain financial stability in retirement. Perhaps most importantly, Social Security has had a meaningful impact on reducing poverty among older Americans. According to the Brookings Institution, it remains the most significant source of income for nearly 40% of its beneficiaries and is one of the most effective social insurance programs in U.S. history.

What Does This Mean for You?

Elon Musk’s recent comments have brought renewed attention—and concern—to the future of Social Security. While his public profile and new role within the administration suggest that reform efforts may be under discussion, it’s important to note that no changes to Social Security benefits have been enacted. In fact, President Trump and other officials have stated that their primary focus is on improving efficiency, not eliminating support.

Of course, Social Security does face long-term funding pressures that policymakers will eventually need to address. Nevertheless, the program remains operational, and any future updates are likely to be implemented gradually—not abruptly.

If you’re approaching retirement or already drawing benefits, know that the foundation of the system is still strong. The best thing you can do right now is stay informed and make thoughtful, proactive decisions about your retirement income.

At Align Financial, we’re here to help you navigate uncertainty with confidence. Our goal is to help you stay grounded, focused, and prepared, so your retirement plan supports the life you envision. If you’d like to talk through your strategy or simply have questions, don’t hesitate to reach out.