As workers in the United States approach retirement, it’s natural for them to worry about Social Security and how it will support their financial well-being in their post-career lives.
Notable entrepreneur Scott Galloway, the popular podcaster and New York University professor, offers his views on the future of Social Security — and another looming threat that serves as a growing problem for the U.S. economy.
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Recent reductions in staffing appear to have caused inefficiencies in the federal program, leading to issues such as extended wait times for phone assistance, raising concerns among both current and future Social Security beneficiaries.
An even greater worry is long-term financial stability. Without intervention from lawmakers, Social Security’s trust funds are projected to be depleted by 2033.
If this happens, monthly payments may be cut to roughly 80% of what recipients currently anticipate.
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The Social Security Administration reports that the average monthly payment stands at $1,976 — amounting to around $23,712 per year — which falls short of the financial security many retirees seek.
Adjustments for the cost of living (COLA), designed to increase Social Security payments, do not always keep pace with inflation.
Additionally, economic uncertainty — especially during market downturns or recessions — can heighten concerns that individuals may rely on Social Security more than they originally planned.
Galloway discusses Social Security solvency and increasing worries about the U.S. national debt — particularly regarding the political stalemate that fuels inaction on solving the problem.
A man in retirement is seen teeing off toward the sun on a golf course. New York University professor Scott Galloway offers a prediction on Social Security solvency and explains his beliefs on the realistic way to solve the U.S. national debt crisis.
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Scott Galloway makes prediction on Social Security, national debt, US economy
As we discussed, action from Congress is needed to avoid Social Security recipients losing out on about 20% of the expected value of their monthly paychecks.
But in his book, “The Algebra of Wealth,” Galloway explains that he does not believe that is likely to happen.
That is because he believes politicians on Capitol Hill are very well aware of the fact that people nearing retirement or already receiving Social Security benefits are more likely to participate in elections than those of other age ranges.
“Old people keep living longer, and they vote, so we’re more likely to get rid of schools, the space program, and half the Navy before we fail to fund Social Security,” he wrote.
More on retirement:
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Galloway also addressed another looming crisis for the U.S. economy: the national debt.
And the future of this growing concern is in the hands of legislators right now.
Related: Dave Ramsey sounds alarm for Americans on Social Security
Scott Galloway has blunt words for US Senate, ‘Big, Beautiful Bill’
The ambitious “Big, Beautiful Bill” currently working its way through Congress faces pushback from multiple fronts. After narrowly clearing the House, the debate in the Senate is becoming increasingly tense, driven by opposition from Republicans, influential tech figures, and policy experts.
The Congressional Budget Office estimates that the bill would add $2.4 trillion to the national deficit over the next decade.
Beyond fiscal concerns, researchers from the University of Pennsylvania and Yale have cautioned that reductions in Medicaid and nursing home funding proposed in the bill could result in an additional 51,000 deaths annually, according to Galloway’s Prof G Markets newsletter.
The bill’s threat to the national debt is not surprising, Galloway explained, citing his understanding that it increased by $8 trillion during President Donald Trump’s first term.
Galloway credits Elon Musk with drawing attention to the conversation about the deficit.
“Still, no one in this so-called deficit debate is talking about raising revenues,” Galloway wrote. “If we want to reduce the deficit in any meaningful way, we have to be honest about the trade-offs. That means raising taxes on the wealthy, or cutting back on large-scale programs like defense and Social Security.”
“But no one wants to say that out loud,” Galloway continued. “So, instead, we get this sideshow — rage tweets, personal feuds, and performative austerity — instead of a serious conversation about how we fund the government.”
Related: Shark Tank’s Kevin O’Leary sends strong message on Social Security
