What Do I Do if My Parents’ Social Security Is Impacted by DOGE? 3 Ways To Boost Savings of Current Retirees
Written by
Laura Bogart
Edited by
Kristen Mae
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Anyone who has followed politics and current events lately has likely heard about the actions of the Department of Government Efficiency (DOGE), a team led by Elon Musk as it sweeps through various government agencies.
Critics have suggested that the DOGE team has swung its axe a little too wide, leading to massive job losses within the government and deep worries about the reliability of core services that people rely on — Social Security among them.
Reporting from ProPublica indicates that, under DOGE’s directive, the Social Security Administration has closed several office locations and laid off roughly 7,000 employees — which has raised concerns about how well the agency can serve the people who rely on Social Security for income, including elderly and disabled people.
Understandably, people who receive Social Security are concerned about reliably receiving their payments. They’re not the only ones: The loved ones of people who rely on Social Security are also worried about what to do if their family members are impacted. Fortunately, there are a few steps you can take to help protect your loved one’s financial well-being and boost their savings, especially if there’s a disruption in benefits.
Downsize However They Can
While it can be difficult for retirees to potentially leave a home where they’ve spent the better part of their lives, downsizing to a more affordable property — and potentially profiting from the sale — can free up cash for savings or emergencies. Or, if the home includes a garden apartment or basement area that could be converted into a rental unit, they could generate passive income by taking on a boarder.
You may also encourage your loved one to think of other ways to downsize their lives, like decluttering closets and attic spaces to see if anything could be sold to vintage stores or online marketplaces. Meanwhile, finding ways to reduce everyday expenses can stretch their budget further — including cutting grocery costs, canceling unused subscriptions, or applying for senior discounts on utility bills. These are habits that benefit everyone, regardless of retirement status.
Invest Wisely
Investing isn’t just for young people — and in retirement, smart investing can help offset inflation and create a reliable income stream. The best time to start was yesterday, but the second-best time is now. Regardless of what may or may not happen with your loved ones’ Social Security payments, a solid investment plan can provide a financial cushion.
Set your loved one up with a trusted financial advisor who can walk them through a mix of investments, such as dividend-paying stocks, bonds, and annuities, which offer steady income with relatively low risk. This is not the time to play YOLO (or, you only live once) with speculative investments like cryptocurrency. In this phase of life, “wise and conservative” should be your investment motto.
Get Strategic About RMDs
Most likely, your loved one isn’t relying solely on Social Security for income — they probably have a 401(k), a traditional IRA, or a Roth IRA. For those with tax-deferred retirement accounts, required minimum distributions (RMDs) begin around age 73, depending on birth year.
If your loved one can use their RMDs to cover their living expenses, it may help buffer them from the effects of a delayed Social Security payment. This is another area where a financial advisor can help — guiding decisions about timing withdrawals, minimizing taxes, and creating a stable drawdown strategy.
Bottom Line
If your parents or loved ones are feeling anxious about what DOGE might mean for their Social Security, they’re not overreacting — and you’re right to be thinking ahead. A few smart moves now, like downsizing, investing conservatively, and making the most of retirement withdrawals can go a long way toward giving them some financial breathing room.
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.
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