Social Security is facing a financial shortfall that could lead to benefit cuts in the future. If no action is taken, by 2035, retirees may receive only 83% of their full benefits due to a funding gap, according to the latest projections from the program’s trustees.

To make matters worse, the Social Security Fairness Act, a new law that increases benefits for more than 3 million workers who receive public pensions, may push the depletion date six months earlier. Without intervention, millions of retirees and workers relying on these benefits could face unexpected financial difficulties.

How Americans Want to Fix Social Security

A recent survey of more than 2,200 Americans found that the majority prefer keeping or even increasing benefits, even if it means raising taxes.

The study, conducted by the National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce, revealed that:

• 85% of respondents support raising taxes to maintain or increase Social Security benefits.
• 15% prefer keeping tax rates the same, even if it means reducing benefits.

According to Tyler Bond, research director at the National Institute on Retirement Security, most Americans are willing to pay more taxes to prevent across-the-board cuts, even if they don’t personally receive additional benefits.

The Most Popular Solutions to Save Social Security

The survey asked participants to choose the changes they prefer and would be willing to pay for. Regardless of political views, income, age, or education, the majority favored a combination of policy changes:

1. Removing the payroll tax cap for high earners:
   • Currently, only earnings up to $176,100 are taxed for Social Security in 2025.
   • The proposed change would tax income above $400,000, ensuring wealthy individuals contribute more.
   • This change would not provide additional benefits to high earners.
2. Raising the payroll tax rate:
   • The current Social Security tax rate is 6.2% for employees and employers.
   • Increasing it to 7.2% could provide additional funding for the program.
3. Adjusting cost-of-living increases:
   • The annual COLA (Cost-of-Living Adjustment) would be updated to better reflect real inflation and spending patterns of seniors.
4. Providing caregiver credits:
   • Parents who take time off work to care for children under age 6 could receive Social Security credits, reducing long-term financial losses.
5. Bridge benefits for physically demanding jobs:
   • Workers in labor-intensive jobs would receive temporary benefits to ease early retirement penalties.

Least Popular Change: Cutting Benefits for High-Income Retirees

One proposed change was reducing benefits for individuals earning over $60,000 annually (or $120,000 for couples), excluding Social Security income. However, this idea was the least favored among survey participants.

Proposed Changes Would Prevent Cuts & Create a Small Surplus

According to Bond, implementing these combined changes would fully close the Social Security funding gap and even result in a minor 1% surplus.

Interestingly, some commonly suggested solutions—like raising the retirement age, increasing benefits for all, or changing the taxation of benefits—were not popular among respondents.

Strong Public Support for Social Security Over Decades

Another study from the National Institute on Retirement Security examined over 40 years of polling data on Social Security and found public support remains high.

Many Americans view Social Security as an essential safety net, and the majority believe funding should be increased to secure its future.

One key finding was that confidence in the program grows as people approach retirement age. Younger workers may feel uncertain about whether Social Security will be available, but older generations tend to trust the program more as they near retirement.

The Urgent Need for Action

With 2035 approaching, policymakers must decide whether to raise taxes, adjust benefit structures, or find alternative funding sources. If Congress fails to act, millions of retirees and workers could face automatic benefit cuts, which could have devastating economic effects.

For now, the survey suggests that most Americans are willing to pay more to keep Social Security strong, rather than see benefits reduced. Whether lawmakers will act on these preferences remains to be seen.

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