Scott Galloway, a professor at New York University and host of “The Prof G” podcast, has shared some startling thoughts on Social Security and Medicare. He believes that the current system needs to be reformed to ensure its long-term viability and fairness. Galloway points out that the average Social Security check in 2025 is about $1,900 per month, which amounts to only $23,000 annually.
This is not enough for most people to live on in retirement, which is why Social Security is considered a safety net rather than a complete replacement for income. As someone who makes $16 million per year, Galloway does not think he should be eligible to collect Social Security when he retires. He supports means-testing as a tool to determine whether one qualifies for benefits.
Galloway pays $9,000 in Social Security taxes every year, the same amount as someone who makes $160,000 annually. “It’s a tax,” he said.
Means-testing for Social Security benefits
“People who need it are entitled to it. So I think you’ve got to means-test it.”
Galloway also warns about risky investment strategies that people should avoid when saving for retirement. In his 2024 book, “The Algebra of Wealth,” he writes that a proper investment strategy is a smartly defensive move.
“As in sports, defense wins championships,” he noted. Galloway explains that while an infinite upside to risk is easy to absorb, a bad bet can devastate you if you’re concentrated in one asset. He encourages people investing for retirement to use an appropriate share of their capital to go after big market wins while maintaining a diversified portfolio.
“A safe and steadily growing asset base will give you the confidence to pursue greater opportunities with your more valuable asset — your time,” he wrote. Galloway emphasizes that the objective is not to be the richest person alive, but rather to achieve economic security through a well-managed, diversified portfolio. In summary, Galloway’s thoughts on Social Security and retirement investing serve as a warning for Americans to carefully consider their financial strategies and to support reforms that ensure the long-term sustainability and fairness of these critical programs.
Image Credits: Photo by Kelly Sikkema on Unsplash
