Will Artificial Intelligence Upend The Social Security Program? Suze Orman Fears It Might

Suze Orman, financial expert and host of the Women & Money podcast, recently raised concerns about the potential impact of artificial intelligence (AI) on the Social Security system. Speaking on her podcast, Orman acknowledged the growing anxiety among her listeners – many of whom are already on Social Security – about the program’s future, not just for themselves but for their children.

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"I don’t want you to worry if you’re 10 years away from it, 20 years away from it, whatever it may be – Social Security in some form will be here," Orman reassured her audience. However, she did point out that the program will likely change in the future, speculating that the full retirement age could change or that benefit formulas could be altered to address funding shortfalls for younger generations. 

One of Orman's main concerns is how artificial intelligence could affect the workforce – and, by extension, Social Security funding. She shared an example of how toll booths, which used to be operated by people, are now automated, illustrating how some jobs have already disappeared.

"I don’t think it’s impossible that by 2030 or so we could have a really high unemployment rate," she said, adding that a primary reason for this would be the capabilities of artificial intelligence to replace human jobs. 

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If fewer people are employed, less tax revenue would flow into the Social Security program, something Orman said could potentially move up the projected depletion date for the Social Security Trust Fund. Currently, the trust is expected to run out by 2033, reducing Social Security recipients' benefits to 79% of what they currently receive or would be expected to receive with today's formula. 

Orman advised listeners to take proactive steps to secure their financial futures, regardless of potential changes to Social Security. She suggested planning for retirement as if Social Security benefits might be reduced. "I would like you to see if you can make it work for yourself without including Social Security now," she said.

She also highlighted the importance of taking advantage of retirement savings opportunities, such as 401(k)s and IRAs, especially as contribution limits increase in 2025. For instance, individuals aged 60 to 63 will have a new catch-up contribution limit of $11,250 for certain retirement plans.

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Although Orman expressed hope that policymakers will address the Social Security funding crisis, she emphasized the need for individuals to take control of their financial security. Whether it's through saving more, investing in retirement accounts or planning for reduced benefits, she encouraged her audience to act now.

The interplay between AI and Social Security highlights a critical question for the future: How can the nation adapt to technological advancements while maintaining vital social programs? While the answers are uncertain, Orman's message is clear – planning will be invaluable for navigating the complex uncertainties of the evolving economy.

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