The program is running short of funds as the senior population grows and fewer workers contribute
of ConsumerAffairsSocial Security turns 90 years old today (August 14) but many seniors current and future fear for its future, as longer lifespans and ailing pension programs threaten the economic wellbeing of millions.
PresidentFranklin Delano Rooseveltsigned the program into law in 1935 during the Great Depression. Today, it provides benefits to 70 million retired workers, disabled workers, and their families, with thenumber expected to increase to 82 million people by the time Social Security turns 100.
"Social Security helps tens of millions of Americans stay out of poverty and retire with dignity after a lifetime of hard work. For more than 40% of older Americans, Social Security is their primary source of income. And for many people, Social Security is the only inflation-protected income they have in retirement," said Myechia Minter-Jordan, CEO of AARP. "As we look ahead to the next 90 years of Social Security, its critical that it remains strong for generations to come."
But while an AARPsurveyshows that67% of Americans view Social Security as more important to retirees today than five years ago, Americans increasingly say theyre concerned about its future. Confidence in the future of Social Security has declined by 7% in the last five years, from 43% in 2020 to 36% in 2025.
Payments falling behind
Besides those who fear the program won't survive for another generation, current recipients say that payments are falling behind the cost of living. "Too many seniors are struggling to make ends meet. Cost of Living Allowances(COLAs) havent kept up with real inflation, and monthly payments simply dont stretch far enough," said Edward Cates, chairman of the Senior Citizens League.
His group is calling on Congress to authorize aone-time make-up paymentto all Social Security recipients.
"This isnt without precedent. In 2009 and 2010, when COLAs were frozen, Congress approved a one-time $250 payment to help recipients cope. If it was justified then, its justified now. Especially after years of high inflation and rising costs," Cates said in an email.
The funding challenge
Social Security is funded mainly through payroll taxes under the Federal Insurance Contributions Act (FICA). But demographic shifts longer lifespans, lower birth rates, and the retirement of the massive baby boomer generation mean fewer workers are paying into the system for each retiree drawing benefits.
In 1960, there were more than five workers per beneficiary; today, there are around 2.7, and that ratio is expected to shrink further. Combined with slower wage growth and widening income inequality, the payroll tax base is under stress.
Policy analysts have laid out potential fixes, including:
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Raising or eliminating the cap on taxable income (in 2025, earnings above $168,600 are exempt from Social Security tax).
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Gradually increasing the payroll tax rate shared by employers and employees.
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Adjusting the full retirement age or benefit formulas for higher earners.
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Diversifying trust fund investment strategies to potentially increase returns.
Each option comes with trade-offs that have made reform politically difficult, despite overwhelming public support for the program.
A 2024 survey found over 90% of Americans across party lines support Social Security and want lawmakers to strengthen it, not cut benefits. Still, political divisions have stalled decisive action.
Democratic lawmakers have backed proposals to expand benefits by taxing higher incomes, while some Republican proposals focus on limiting the growth of future benefits and encouraging private retirement savings. Without a compromise, experts warn, retirees could face automatic benefit cuts within a decade.
Posted: 2025-08-14 18:09:43
