Warren Buffett Social Security warning for retirees, Digi Mart USA News: Warren Buffett stepped down as CEO of Berkshire Hathaway this year at age 95 and now serves as chairman emeritus. Over several decades, he has shared money advice through the media, at Berkshire Hathaway meetings and in letters to shareholders.
Social Security is one of the topics on which Buffett has strong opinions. In 2005, at the annual Berkshire Hathaway meeting, he said it would be a mistake for Social Security payments to drop any lower.
He argued that because the United States is a wealthy country, it should have the funds to care for its elderly population.
Buffett does not write U.S. laws, but his opinion carries weight because he led Berkshire Hathaway for decades and is one of the world’s wealthiest people.
According to the 2026 Trustees Report, the Old-Age and Survivors Insurance (OASI) Trust Fund, which funds a portion of Social Security, will run out of reserves in 2032. At that point, if Congress does not change the law, the OASI would have to cut retirement benefits by 22%.
For an individual receiving the average Social Security check of just over $2,000 a month, that check could fall to $1,560, a reduction of $440 per month or $5,000 per year.
The Committee for a Responsible Federal Budget (CRFB) estimates that couples would feel the loss especially hard if Congress does not fully fund Social Security. Medium-income couples could lose just under $17,000 annually, and high-income couples could lose more than $22,000 annually.
Single-earner households and individuals without a second income stream would face even greater strain.
The main reason benefits may need to be cut is the worker-to-beneficiary ratio, which fell from 5.1 in 1960 to under 3 today. In 1960, roughly five workers paid Social Security taxes for every retiree collecting benefits.
Today there are fewer than three workers for each beneficiary. People are also living longer, which means they receive more checks over their lifetimes.
Buffett has said that lifting the payroll tax cap could help close the funding gap. He has also said that raising the retirement age could help ensure Social Security does not run out.
Retirees cannot change Social Security law, but they can prepare their finances. Although benefits can be claimed at age 62, waiting until age 70 could result in a larger check.
Tracking spending, paying down high-interest debt and keeping spending below income can help retirees manage a possible benefit reduction.
Congress has not yet enacted a solution to the Social Security funding shortfall. Retirees worried about affording their lifestyle may benefit from consulting a financial planner, who can review income, expenses and retirement goals and help determine the best age to begin taking Social Security benefits.
