Jan 10, 2026
The massive $2.7-trillion Social Security program faces two waves of disruption in 2026: a renewed push to privatize the fund’s assets, and cuts to services that coincide with rising disinformation (1).
These changes could impact you in the long run, even if you’re not yet a beneficiary. Whether you’re collecting a check or still paying into the system, here’s what you need to keep an eye on in 2026.
Push to privatize
One of the more heated debates about the Social Security system is over how the trust fund is invested. Currently, the funds are invested exclusively in marketable Treasury securities, according to the Social Security Administration (2).
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However, President Donald Trump and his administration seem to be actively considering moves that could pour some or all of the fund’s assets into the private market. Treasury Secretary Scott Bessent hinted at this in a recent interview with Breitbart, where he described the new "Trump Accounts" for newborns, which are rolling out in 2026, as a potential "back door to privatizing Social Security” (3).
Although he later clarified that the Trump Accounts were designed to supplement rather than replace Social Security, the president himself indicated that privatization was still on the agenda. In December, Trump said he is looking “very seriously” at the compulsory Australian retirement savings program for inspiration to modify the U.S retirement system (4).
A few months prior, Republican Senator Bill Cassidy wrote an op-ed floating the idea of a government-sponsored investment fund, financed partly through borrowing, designed to invest in stocks and other higher-yielding assets as a means of shoring up Social Security’s finances (5).
These proposals have alarmed independent organizations ranging from the AARP to the Cato Institute.
Although diversifying away from treasuries could have some productive merits, Democratic Congressman John Larson of Connecticut cautioned that retirees and workers should closely monitor it.
“Everybody’s antenna should go up when you start looking at $2.7 trillion,” he said on his website. “This is not their money. It’s the people’s money” (6).
Whether you’re claiming Social Security yet or not, you should watch these moves.
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Cuts to service levels
The second critical change of 2026 is operational, but with far reaching practical implications.
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At the beginning of 2025, President Trump entrusted billionaire Elon Musk with overseeing cost cutting-measures across federal agencies. The so-called Department of Government Efficiency, or DOGE, has largely failed in its mission to save $1 trillion. The agency claimed to save $55 billion, but this is also unverified, and it has since gone defunct (7).
Although Musk’s crew didn’t save the government much money, it did reduce staff levels, which could impact service quality this tax season. Several field offices have been shuttered, and an Inspector General report found that employees available to handle national 800-number calls fell from about 4,700 at the start of fiscal year 2025 to just over 4,000 by June 2025, a 13% decline (8).
This coincides with a rapid rise in AI-generated misinformation content about taxes and finances online. The Federal Trade Commission (FTC) reported a four-fold increase in reports of scammers impersonating government agencies and businesses between 2020 and 2024 (9).
In other words, taxpayers are more likely to need to call the IRS for clarification just as it cuts back on staff to answer those calls.
Simply put, you’re facing longer wait times as the system struggles to keep up with rising demand.
What can you do?
The government’s efforts to reform the system or cut costs are largely beyond your control — although you could always get involved in the political process — but you can mitigate some of these risks by planning ahead. Get started on your tax return as early as you can so you can call the agency to clarify any doubts before it gets busy. Make sure you cultivate good sources of information, such trustworthy news outlets and qualified experts.
Use SSA.gov and the Inspector General’s scam resources — not social media — for benefit changes and cost-of-living adjustment (COLA) details. Check your my Social Security account often to make sure all your information and payment details are correct.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Social Security Administration (1); Social Security Administration (2); ABC News (3); Cato Institute (4); U.S. Senator Bill Cassidy (5); U.S. Representative John Larson (6); CEPR (7); Office of the Inspector-General (8); Federal Trade Commission (9)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
