AARP Is Warning Retirees About a Proposal That Could Put Social Security at Risk - Here's What It Means for Your Benefits

Getting federal spending under control may sound like something retirees could support, especially when they want a healthy economy behind their retirement plan. AARP has been raising concerns, though, about what one approach could mean for Social Security.

The group has long opposed a constitutional balanced-budget amendment, warning that it could leave retirees' benefits more exposed when Congress has difficult budget decisions to make.

With Social Security already facing a funding shortfall, AARP's warning adds another issue for retirees to keep on their radar.

What is a balanced-budget amendment?

A balanced-budget amendment would add a rule to the Constitution requiring the federal government to keep yearly spending within the revenue it collects. Today, Congress can spend more than it brings in and borrow to cover the difference.

If revenue came up short under a balanced-budget requirement, lawmakers would generally have two ways to close the gap:

• Bring in more revenue: Some balanced-budget amendment proposals have required a "supermajority" vote to raise taxes, which could make new revenue harder to approve.
• Cut spending: Congress could reduce federal spending until the budget balances.

For most retirees, the big concern is whether Social Security would be among the programs Congress turns to when it needs to cut spending.

Why Social Security could end up in the crosshairs

Social Security is the federal government's largest spending program and pays benefits to more than 70 million Americans. If Congress suddenly had to close a large budget gap through spending cuts, leaving a program that large completely untouched could be difficult.

The Center on Budget and Policy Priorities (CBPP) says a strict balanced-budget rule would not automatically protect Social Security or Medicare. Protecting Social Security would mean lawmakers would have to find much deeper savings elsewhere in the federal budget.

Many versions of a balanced-budget amendment would also make tax increases harder to pass by requiring a two-thirds vote in Congress. If bringing in more revenue becomes harder, lawmakers may have to lean more heavily on spending cuts, which is where AARP sees a risk to Social Security.

Why Social Security could face pressure from two sides

Social Security is already on a path toward benefit reductions under current law. The retirement trust fund is projected to run out in the early 2030s, at which point benefits would automatically drop to about 78% of scheduled levels.

A balanced-budget amendment could make that problem harder to manage because Congress may have less flexibility when Social Security's costs are higher than the money coming in.

Depending on how the amendment is written, lawmakers could face more pressure to reduce spending instead of relying on borrowing or other budget tools while they work on a longer-term fix.

That could leave Social Security dealing with its own funding shortfall at the same time Congress is under a constitutional requirement to balance the budget, increasing the risk that benefit cuts become part of the solution.

AARP is not alone in raising concerns

AARP has long argued that Social Security should not be used to solve problems elsewhere in the federal budget. Workers pay into the program through dedicated payroll taxes, and AARP believes those benefits should be protected from across-the-board spending cuts.

The AFL-CIO made a similar argument when opposing a balanced-budget amendment considered by the House in 2026, warning that it "would result in massive cuts to Social Security, Medicare, Medicaid, and other essential programs" if lawmakers cannot increase revenue.

The Coalition on Human Needs, which represents anti-poverty groups, has also urged Congress to reject the amendment because of what spending cuts could mean for the millions of Americans who depend on federal benefits.

How AARP wants Congress to strengthen the program

AARP wants Congress to strengthen Social Security without cutting the benefits people have earned. The group has supported bringing more money into the program, including proposals that would ask higher earners to contribute more.

The nonpartisan organization also wants any changes to Social Security to go through the regular legislative process, giving lawmakers and the public time to consider how retirees would be affected. Its position is that Social Security's funding problem should be addressed directly rather than folded into a larger fight over the federal budget.

Give your Social Security plan a simple stress test

Any balanced-budget amendment would have a long way to go before it could affect Social Security. It would need approval from two-thirds of both the House and Senate, followed by ratification from 38 states.

Your benefits are still calculated under current law, but it can still help to plan for the funding risk Social Security already faces. Checking your projected benefit and seeing how your budget would look at about 80% of that amount can give you a better sense of how much flexibility you have.

If your retirement plan can handle a smaller check, you may be better prepared for future changes to the program.

Bottom line

A balanced-budget amendment could eventually reach the Social Security checks millions of people count on each month. AARP worries that if lawmakers have fewer ways to close a budget gap, Social Security could end up on the list of places they look for savings.

That risk can feel especially important if you expect to be living on just Social Security, since even a smaller check could make everyday expenses harder to cover. These proposals take time, though, and every year before retirement can give you another chance to build more financial support around your Social Security benefit.

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