4 Ways Elon Musk’s DOGE Exit Could Affect Your Retirement
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
When President Donald Trump took office in January 2025, Tesla CEO — billionaire Elon Musk — also assumed his spot at the head of the Department of Government Efficiency (DOGE).
DOGE’s goal was to slash government waste, and Musk set a lofty goal of $2 trillion, but only reached about $160 billion in federal cuts, many of those being federal employees who lost their jobs.
Now, Musk is stepping back from DOGE to return to his electric car company. What, if any impact, does his DOGE departure have on Americans’ retirement plans or benefits?
What DOGE Did With the Social Security Administration
While Musk’s departure may not change much — the changes that DOGE has already wrought will have continuing effects on many Americans’ retirements. Musk’s cost-cutting measures included significant staff reductions and office closures within the Social Security Administration (SSA). While this did not lead, as some feared, to the end of Social Security, there have been some negative effects such as longer wait times, increased overpayment clawbacks and less access to benefits information for vulnerable populations.
Reduced Access To Benefits
Many Americans don’t realize the vast array of services the SSA provides that are not just servicing basic benefits; they are an essential resource to people with disabilities, low-income seniors and families, and more. The SSA administers numerous programs that support retired people in these categories, and the staff reductions and cost-cutting measures could threaten the access and availability of these programs to anyone recently retired or retiring now.
Increased Risk of Social Security Fraud
Social Security staff also protect a lot of highly sensitive personal data that is prone to fraud, such as Social Security numbers, tax info and medical records, and seniors are frequently the targets of these kinds of scams.
Additionally, many people expressed concern that DOGE itself was illegally gaining access to their info for unexpressed purposes, potentially leaving them more vulnerable to fraud.
Increased Benefit Withholdings
Under DOGE’s influence, the SSA tightened up repayment rules for overpaid benefits. The prior clawback rate was 10% of the benefit amount per month until the overpayment was repaid. The SSA bumped that up to 100% before public outcry forced a reduction back to 50%.
This policy change means that retirees who receive overpayments may find themselves in financial deficit, even if the money wasn’t supposed to come to them in the first place. It’s easy to spend money as it comes, and many people living on Social Security are already low-income.
Need for Diversified Retirement Planning
DOGE’s impact on the SSA drives home the need for those who are still in the retirement planning phase of their careers to diversify their retirement planning strategies. It’s never wise to rely solely on Social Security benefits if individuals can help it.
A balanced approach that includes a mix of traditional savings, investments and awareness of policy changes can help mitigate these risks.
Will DOGE Keep Going?
Musk’s exit from DOGE does not mean that DOGE’s work is done, however. Though Musk may be out, he anticipates the department continuing on well into 2028, if Trump deems it necessary. Whether Trump has the desire and momentum to keep up the cuts is still to be seen.
What retired or soon-to-be retired adults should keep their eyes on is a recent Republican House spending bill that proposes massive cuts to Medicaid. If that passes the Senate, it doesn’t bode well for Medicare, which seniors rely upon.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
