Social Security Isn’t Going Anywhere—Here’s Why

Social Security has been a foundation of retirement income for generations. If you’re approaching retirement or already there, you may be wondering: Is Social Security going away? The short answer is no. Despite headlines, political rhetoric, or the involvement of figures like Donald Trump or Elon Musk in broader government reform, Social Security is not being eliminated.

As of 2025, the Social Security Administration continues to issue benefits to over 67 million Americans. These payments are primarily funded by payroll taxes paid by today’s workforce. The system is backed by two trust funds—Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI). These are financially distinct but often considered together when assessing the system's long-term sustainability.

The concern isn’t about whether Social Security will vanish—it’s whether it will be able to keep paying full benefits decades into the future. According to the 2024 Social Security Trustees Report, the trust funds will be depleted by 2035 if no changes are made. At that point, the system would still be able to pay roughly 77% of scheduled benefits from ongoing tax revenue. While that would be a cut, it’s far from a collapse.

Understandably, many retirees and pre-retirees feel unsettled by reports of changes, especially those involving the current administration’s government efficiency initiatives. For instance, under the Department of Government Efficiency (DOGE), there have been efforts to modernize how Social Security benefits are administered. Some changes—like eliminating certain phone verification methods—have sparked frustration, especially in rural communities. But even these adjustments are about how the program runs, not whether it exists.

Similarly, former President Trump’s first administration and related policy efforts have not moved to eliminate Social Security. In fact, the current administration has repeatedly pledged to protect benefits. While debates continue around how to fund the system long-term, no serious proposal from this camp has included ending the program. That’s important context—especially for those hearing fear-based rumors suggesting otherwise.

So, if Social Security isn’t going away, why the concern? The system is under strain due to demographics. People are living longer, and birth rates are lower. In 1960, there were 5 workers for every retiree. Today, that number is under 3—and falling. This means fewer payroll tax dollars are coming in per beneficiary.

At the same time, the benefit has become far more generous than when the program was created in 1935.  Originally, it provided retirement benefits only to workers aged 65 and older (at that time, life expectancy in the United States was about 61 years), and only if they had paid into the system for years. There were no spousal benefits, no disability insurance, no cost-of-living adjustments, and no early retirement options.

Since then, the program has evolved dramatically. Today, Social Security includes benefits for spouses, survivors, and disabled workers. It offers early retirement as young as age 62 (with reduced payments), inflation-adjusted benefits through annual COLAs, and more inclusive eligibility. For modern retirees, this means the program provides not just a safety net—but a more comprehensive and adaptable retirement income source.

To address this, lawmakers have options. These include raising the payroll tax rate, lifting or eliminating the income cap, increasing the full retirement age gradually, adjusting benefits for higher earners, or changing how annual cost-of-living adjustments are calculated. None of these are simple, but all are being actively discussed in Washington. Importantly, any changes are likely to protect current and near-term retirees, with reforms targeting younger workers instead.

There are five main ways Social Security can be made financially sound for the long term—and most involve modest, phased-in changes that avoid disrupting benefits for those already retired or nearing retirement.

1. Increase Payroll Tax Revenue

The most direct way to strengthen the system is to bring in more funding through payroll taxes.

  • A. Raise the Payroll Tax Rate: Today, workers and employers each pay 6.2%. Raising this to 7.2% would eliminate most of the projected funding gap without reducing benefits.

  • B. Eliminate or Raise the Wage Cap: Only income up to $168,600 is currently taxed. High earners pay no Social Security tax on wages above that. Lifting the cap—or taxing income over $250,000—would bring in significant revenue while affecting only a small portion of workers. This is often called “Scrap the Cap.”

  • C. Broaden the Tax Base: Some proposals suggest taxing income sources currently excluded from Social Security contributions, like employer-provided health benefits or even investment income. While more complex, this could provide another stream of funding.

2. Reduce or Adjust Benefits

Policymakers can also look at managing costs without eliminating benefits.

  • A. Gradually Raise the Full Retirement Age: Right now, it’s 67 for those born in 1960 or later. Raising it to 68 or 69 would reflect rising life expectancy and spread benefits over a longer work life.

  • B. Modify the COLA Formula: Using the “chained CPI” instead of the current inflation index would slow the rate of annual increases, slightly lowering future payouts.

  • C. Reduce Benefits for High-Income Retirees: Known as “means testing,” this approach would reduce or phase out benefits for those with significant income from other sources—while protecting full benefits for middle- and lower-income retirees.

3. Combine Revenue Increases and Benefit Adjustments

The most realistic path forward likely includes a blend of new revenue and moderate cost controls.

  • For example, the Social Security 2100 Act proposes raising payroll taxes and slightly expanding benefits.

  • Other bipartisan plans from the Bipartisan Policy Center and Committee for a Responsible Federal Budget lay out similar balanced proposals designed to preserve the program over the next 75 years.

4. Invest Trust Fund Assets Differently

Today, Social Security trust funds can only invest in U.S. Treasury securities. Some economists propose allowing a portion to be invested in diversified portfolios—like stocks or index funds—as pension funds do. This could yield higher returns, though it introduces some investment risk. Even a small allocation to equities could help close part of the funding gap.

5. Immigration Reform

One often overlooked solution is expanding the working-age population through legal immigration. Most immigrants pay into the system for decades before collecting benefits, making them a net positive. Policies that attract more skilled, taxpaying workers would increase payroll tax revenue and support the trust fund.

As a retiree or someone nearing retirement, what should you do? First, don’t panic—Social Security is here to stay. But be realistic. Treat your benefits as one piece of your financial plan, not the whole picture. Build and preserve other sources of retirement income—401(k)s, IRAs, pensions, or annuities. And stay informed about policy changes, especially those affecting Medicare, taxation, and Social Security payment logistics.

To summarize, Social Security is not being canceled by Trump, Elon Musk, or any current government agency. While changes may occur in how the program is administered or funded, your benefits are not disappearing. There is time for lawmakers to act to ensure the program remains strong. For now, Social Security remains a stable, dependable source of income for millions of retirees—and it will continue to be, even as adjustments are made.

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This material was written in collaboration with artificial intelligence (ChatGPT) and derived from sources believed to be correct.

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