Nearly Half of Self-Employed Americans Fear Social Security Won't Be Around in Retirement
Tesla CEO Elon Musk has grabbed a lot of headlines this year as head of the Department of Government Efficiency (DOGE), a non-official organization created by President Donald Trump to slash the federal government. Musk said he will soon 'step back' from DOGE, but his work there has already raised numerous red flags — including its potential impact on Social Security.
Read More: 4 Things To Watch For as Elon Musk Takes on Social Security
Try This: The New Retirement Problem Boomers Are Facing
Many Americans worry that DOGE's work to cut spending within Social Security could lead to benefit cuts or worse. In fact, nearly half (45%) of self-employed Americans fear Social Security won't even exist when they retire, according to a new survey from public interest law firm Atticus.
Next, find out what promises Musk has made about Social Security.
How Social Security Payroll Taxes Work
The survey of 1,006 self-employed Americans, conducted in February 2025 and released in late April, aimed to gauge how these workers view Social Security. Many of the questions centered on tax issues.
The self-employed must pay a 15.3% rate to cover Social Security and Medicare taxes. That's double what W-2 employees pay, mainly because self-employed workers must pay both the employee and employer portions of these taxes.
Nearly two-thirds (64%) of Atticus' survey respondents said Social Security taxation is 'unfair' compared with W-2 employees. Seven in 10 believe the government should provide 'special tax breaks' to offset their Social Security burden, while 42% would prefer to opt out of Social Security and invest privately.
Find Out: 3 Changes That Could Be Coming to Social Security Now That Congress Is Republican
Unease Over Social Security's Future
The survey also uncovered growing unease over Social Security's future, especially given recent events.
Already this year, the Social Security Administration (SSA) has announced plans to cut more than 7,000 jobs and close at least 10 field offices. Musk himself has suggested that Social Security is a 'Ponzi scheme' rife with waste and fraud and might be a good candidate for a massive overhaul.
Cuts to Social Security's spending could not have come at a worse time for the embattled agency. One of the biggest risks right now has to do with the looming depletion of Social Security's Old Age and Survivors Insurance (OASI) Trust Fund.
The fund is expected to run out of money in about a decade, leaving Social Security solely dependent on payroll taxes for funding. Those taxes currently fund about 77% of benefits.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Yahoo
a minute ago
- Yahoo
The average rate on a 30-year mortgage slipped to 6.74% this week, Freddie Mac says, as elevated rates weigh on market
MCCLEAN, Va. (AP) — The average rate on a 30-year mortgage slipped to 6.74% this week, Freddie Mac says, as elevated rates weigh on market.

Yahoo
a minute ago
- Yahoo
Top Midday Stories: Alphabet, Tesla Kick Off 'Magnificent 7' Earnings; Union Pacific, Norfolk Southern in 'Advanced' Merger Talks
Wall Street's major market averages were mixed around midday Thursday as corporate earnings continue Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a minute ago
- Yahoo
American Airlines stock tumbles as carrier cites 'tough' July for domestic travel
American Airlines (AAL) stock slumped 6% on Thursday as the carrier echoed a trend seen with its peer Southwest (LUV) — weaker-than-expected domestic travel last quarter. "July has been tough, really hit hard by the uncertainty during the primary booking period," American CEO Robert Isom said during the company's earnings call on Thursday morning. The airline pointed out domestic revenue declined about 6% year over year over year in the three-month period ending in June. However, the company expects that July will be the low point and that performance will improve sequentially month over month. In other words, American's financials will recover during the second half of the year. "Let's face it, the domestic network has been under stress because of the uncertainty in the economy and the reluctance of domestic passengers to get in the game," Isom said American said it expects a loss per share between $0.10 and $0.60 during the current quarter and earnings for 2025 in a range between a loss of $0.20 and a gain of $0.80 per share. Read more about American's stock moves and today's market action. The airline reinstated its guidance after pulling it in April, along with the other major carriers, following President Trump's broad-based tariff policy. Despite posting record quarterly revenue of $14.4 billion, American's outlook diverges from the more bullish forecasts from Delta (DAL) and United (UAL). Part of the reason is that American has more domestic destinations and flights than its two biggest rivals. Airlines have been leaning into meeting demand from international routes, as well as premium seats, which command higher ticket prices. Meanwhile, Southwest stock plunged 10% on Thursday after the carrier issued a trimmed pre-tax profit outlook of $600 million to $800 million in 2025 — as much as $1 billion less than previously anticipated. "We saw some uncertainty that came in and demand fell off quite quickly during that period," Southwest CFO Tom Doxey told Yahoo Finance on Thursday morning. "The speed with which that came down was one of the faster reductions in revenue that we've seen in years across the industry." "The great news is we're starting to see that stabilize," Doxey added. "As tariffs and other things are starting to solidify a bit, you're starting to see that spending change," creating a potential tailwind for the airline in the second half of the year. Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre. Click here for in-depth analysis of the latest stock market news and events moving stock prices