Major Changes to Social Security: Impacts on Marginalized Communities
Social Security, often regarded as America’s retirement safety net, is set to undergo significant changes this fall and into 2026. These modifications could drastically reshape the program, particularly affecting African Americans and other historically marginalized groups, raising concerns among experts about equity and access.
The Proposed Changes
The recent reforms initiated by the Trump administration include a series of adjustments that could have severe implications for vulnerable populations. The full retirement age has been raised to 67 for individuals born in 1960 or later, a continuation of a phased shift that began in the 1980s. This change means that workers filing for benefits before reaching this age will face permanent reductions in their monthly payouts, while delaying benefits until age 70 can yield up to a 24% increase in monthly income.
Financial analysts warn that claiming benefits early can lead to a reduction in lifetime income by as much as 30%. This burden predominantly impacts communities with lower life expectancies and those engaged in physically demanding jobs—conditions that disproportionately affect Black and Latino workers.
Disability Coverage Tightened
The proposed alterations are not limited to retirement benefits. The Center on Budget and Policy Priorities (CBPP) indicates that the Trump administration aims to implement what could be the largest cut to Social Security Disability Insurance (SSDI) in history. This plan may decrease the qualification rate for applicants by up to 20%, making it particularly challenging for older workers to meet eligibility criteria. Kathleen Romig, a senior analyst at CBPP, emphasizes that dismissing additional older applicants would unfairly disadvantage those who rely on these critical benefits.
Currently, nearly 80% of SSDI beneficiaries are aged 50 or older, many of whom reside in Southern and Appalachian states where older laborers, Black workers, and those with lower educational qualifications are concentrated. Such restrictions could force many into financial hardship, jeopardizing their retirement security and access to healthcare.
Changes to Payment Methods
Another notable shift is the Treasury Department’s decision to cease issuing paper checks for Social Security payments by September 30. This modernization effort could present a significant hurdle for more than five million Americans—many of whom are elderly, disabled, or unbanked—who still depend on physical checks for their income.
Romig raised alarms about how this transition could cut off essential income for vulnerable groups who may struggle to adapt to electronic payment systems. While waivers will be available for individuals with specific circumstances, such as “mental impairments or remote living arrangements,” they will only be considered in rare cases.
The Racial Wealth Gap
A 2024 study from the Center for Retirement Research found a notable disparity in Social Security benefits between Black and white retirees, with Black retirees receiving 19% less, even though the program’s structure is designed to favor lower earners. This gap is primarily a result of lower lifetime earnings, poorer health outcomes, and disproportionate caregiving responsibilities that impact Black workers more severely than their white counterparts.
Researchers assert that merely changing Social Security won’t significantly bridge existing racial and ethnic gaps. Instead, achieving equity for Black and Hispanic retirees necessitates broader efforts to enhance opportunities for workers and address pay inequities.
Echoes of History
Scholars like Rutgers Law School professor Jon C. Dubin highlight that these impending changes echo historical injustices rooted in the original Social Security Act of 1935, which excluded many Black Americans through occupational restrictions. Dubin notes that the initial exclusion of agricultural and domestic workers—a workforce predominantly composed of Black Americans—was a direct reflection of slavery’s lingering impacts and the desire to protect the plantation-sharecropping economy.
According to Dubin, the proposed increase in the full retirement age to 70 would severely disadvantage Black workers due to their generally shorter life expectancies, thus limiting their window for receiving benefits.
Final Thoughts
With increasing retirement ages, stricter eligibility criteria for disability, and a shift to electronic payments, there is a pervasive fear that Social Security—once a critical instrument for lifting millions out of poverty—could inadvertently reinforce existing inequalities. As Dubin states, “Equal protection doctrine has proven largely inadequate as a remedial tool,” highlighting the urgent need for more equitable solutions to address the consequences of economic insecurity among marginalized communities.