Social Security Administration Warns of Massive Layoffs: What It Means to You
The Social Security Administration is gearing up to layoff thousands of workers. Here’s how it can impact you.


The Social Security Administration (SSA) is gearing up for massive layoffs as part of the Department of Government Efficiency(DOGE)'s efforts to cut waste in the federal government.
In a memo sent to employees, the SSA said it will soon implement agency-wide organizational restructuring that will include significant reductions in staff.
“Through these massive reorganizations, offices that perform functions not mandated by statute may be prioritized for reduction-in-force actions that could include abolishment of organizations and positions, directed reassignments and reductions in staffing,” wrote the SSA.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The job cuts could be as high as 50% of the SSA’s workforce of 60,000, reported the Associated Press.
This is the latest salvo in DOGE’s overhaul of SSA. The SSA just closed around ten Social Security offices located across the country.
Social Security layoffs: how it could impact beneficiaries
A workforce reduction of this magnitude at the Social Security Administration could adversely impact Social Security recipients.
After all, the agency is responsible for processing new applications, managing SS accounts and handling in-person or on-the-phone inquiries.
If they have less employees it may create bottlenecks in providing support and services.
“The Social Security Administration is already chronically understaffed. Now, the Trump Administration wants to demolish it.” says Nancy Altman, President of Social Security Works, the non-profit focused on protecting and expanding Social Security, Medicare and Medicaid.
“If Musk's plan goes through, it will deny many Americans access to their hard-earned Social Security benefits," she said. "Field offices around the country will close. Wait times for the 1-800 number will soar."
What you may encounter
If you have a problem with your benefits it may be harder to resolve your issue. Longer wait times on the phone and delayed resolutions may become common.
If you're planning on collecting Social Security benefits be prepared to wait longer for benefits to kick in.
“For new applications, being able to process those claims depends on the SSA maintaining accurate earnings history for individuals,” says Jack Smalligan, senior policy fellow at the Urban Institute, the D.C. non-profit think tank. "Maintaining that system requires non-frontline staff."
People filing for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) disability benefits could be particularly hurt by this.
As it stands there is a nearly 2 million backlog of claims for benefits. It takes seven months on average for an initial eligibility determination, according to data from the Urban Institute. Further staffing cuts would exacerbate backlogs and lengthen wait times, the Urban Institute warned.
What happens to SSA staffers?
SSA employees have a few options: apply for reassignment, resign with incentive pay, retire early or ride it out and hope they survive.
Employees opting to apply for reassignment must fill out a "Reassignment Questionnaire" no later than March 14.
Employees opting to resign with incentive pay must opt in by March 14 and "separate from the agency" no later than April 19. Any employee who agrees to this will be placed on administrative leave during the time between when they opt in and April 19.
These employees will be given a lump sum based on the grade level within the federal government. Payouts are as follows:
Up to GS 8: $15,000
GS 9 – 12: $20,000
GS 13 and up $25,000
Employees who resign also get paid out for their annual leave and may be eligible for a deferred retirement when they reach their minimum retirement age.
For employees who are eligible for early retirement, they have until December 31, 2025. The SSA warned that during the time they are employed they could be subject to restructuring activities.
What you can do
Much of what happens is out of your control, especially if you haven't filed for Social Security benefits yet. But there are steps you can take to prevent any issues.
If you don’t have an online account you can and should set it up at my Social Security account. If you have an existing account, make sure all the information is accurate and up-to-date.
Obtain and save a copy of your Social Security earnings. Typically the SSA will send a copy in the mail or you can access it through online services. If you don't have an online account call SSA or visit a field office.
If you have business you need to conduct with the SSA, it's best to schedule an appointment online or by phone. If possible, don't delay!
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Donna Fuscaldo is the retirement writer at Kiplinger.com. A writer and editor focused on retirement savings, planning, travel and lifestyle, Donna brings over two decades of experience working with publications including AARP, The Wall Street Journal, Forbes, Investopedia and HerMoney.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
Retire in Finland and Live the Nordic Dream
Here's how to retire in Finland as a US retiree. It's ideal for those who value natural beauty, low crime and good healthcare.
-
Baby Boomers vs Gen X: Who Spends More?
Baby Boomers and Gen X are guilty of spending a lot of money. Here's a look at where their money goes.
-
You're Close to Retirement and Cashed Out: How Do You Get Back In?
If you've been scared into an all-cash position, it's wise to consider reinvesting your money in the markets. Here's how a financial planner recommends you can get back in the saddle.
-
Should You Ditch Your Medicare Advantage Plan? Most People Do
If you want to switch your Medicare Advantage plan or enroll in original Medicare, you're not alone. Here's when it's a good idea and how to go about it.
-
The 401(k) Mistake That Could Cost You Millions in Retirement Savings
Thinking about reducing your 401(K) contributions in the current market? Here are six reasons why you may want to reconsider.
-
What the HECM? Combine It With a QLAC and See What Happens
Combining a reverse mortgage known as a HECM with a QLAC (qualifying longevity annuity contract) can provide longevity protection, tax savings and liquidity for unplanned expenses.
-
I'm 60 With a $4.2 Million Nest Egg. Can I Stop Saving and Start Spending Until I Retire at 65?
Should I continue contributing to my 401(k) or treat myself now?
-
These Jobs Reduce Your Alzheimer's Risk: How You Can Benefit
Two jobs are linked to a lower Alzheimer's risk. Even if you do a different kind of work or are retired, these jobs show how to keep your mind sharp.
-
My Professional Advice: When It Comes to Money, You Do You
This is how embracing the 'letting others be' and 'learning to surrender' mindsets can improve your relationship with money.