A program at risk
The Trump administration is signaling that no idea is off the table when it comes to fixing Social Security’s long-term funding problem. One option being seriously discussed is raising the retirement age.
U.S. Social Security Administration Commissioner Frank Bisignano commented on an appearance on Mornings with Maria. When pressed about whether higher retirement ages could be part of the solution, he replied, “I think everything’s being considered, will be considered.”
That remark has sparked debate because Social Security is more than just a government program—it’s the lifeline for tens of millions of Americans who depend on it every month.
Why the retirement age is on the table
Social Security faces a big math problem. Back in 1950, 16.5 workers were paying into the system for every one retiree. By 1985, that number had dropped to 3.3. In 2013, it was just 2.8—and today, it’s even lower.
This shrinking worker-to-retiree ratio means less money flowing in while more people are collecting benefits. Current projections show the two major Social Security trust funds will run dry by early 2034. Once that happens, the law requires an automatic cut to benefits—about 24% on average—unless Congress acts.
That’s why raising the retirement age is being discussed. If Americans wait longer to collect benefits, the system saves money in the short term and has more time to collect payroll taxes.
The cost of doing nothing
If Congress sits on its hands, beneficiaries could face a painful cut. Imagine losing nearly a quarter of your monthly check—that’s the scenario experts say could unfold.
The trustees overseeing Social Security have suggested another possible fix: increasing payroll taxes. Right now, workers and employers together pay 12.4% of wages into the system. To close the gap for the next 75 years, that rate would need to rise to 16.05%.
It’s not a small change. For someone earning $60,000 a year, that would mean roughly $2,000 more taken out in payroll taxes annually.
Other ideas on the table
Raising the retirement age isn’t the only idea being floated. Bisignano mentioned another option—lifting the cap on taxable wages. Currently, Social Security taxes only apply to income up to about $168,600. Anything earned above that isn’t taxed for Social Security.
Raising or eliminating that cap could bring in billions more to the program each year.
But all these choices—raising the retirement age, hiking payroll taxes, or lifting the wage cap—come with political risks. Older Americans don’t want to see benefits cut. Younger Americans don’t want to see more money taken out of their paychecks. And wealthy earners won’t like being taxed more on their higher salaries.
Americans already feeling uneasy
The uncertainty is making many workers nervous. A recent Allianz Life study found that only 28% of Americans feel confident they can financially support their retirement goals. That’s down sharply from 2020.
Even more striking, 70% of people said they worry more about running out of money in retirement than about dying. Gen Xers, in particular, are anxious since they’re closer to retirement but still young enough to be affected by policy changes.
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The road ahead
For now, there’s no final decision. Bisignano stressed that the process will take time and require teamwork between the White House, Congress, and federal trustees. “We’re less than 200 days into this administration,” he said, pointing out that reforms won’t happen overnight.
What is clear is that Social Security cannot continue on its current path without changes. Whether that means working a few more years, paying more in taxes, or adjusting benefits, tough choices lie ahead.
