Modern Estate Planning Blog

Takeaways

• A new report finds that Americans overwhelmingly support preserving and strengthening Social Security benefits, even if it means paying more to address the program's long-term financing gap.

At a time when the nation is deeply divided across political lines, Americans can agree on at least one thing: Social Security benefits should not only be preserved but strengthened — even if that means they have to pay more to address the program’s long-term financing gap.

A new report, published as Social Security turns 90, finds that Americans overwhelmingly view Social Security benefits as a vital part of their retirement security and the financial well-being of seniors.

They express broad support for increasing revenues to strengthen Social Security rather than cutting benefits, with a preference for raising taxes on higher earners. Americans also value Social Security disability benefits and want to make sure they can rely on them if needed.

Social Security Turns 90

The Social Security program enters its 90th year in 2025. The largest single program in the federal budget, Social Security makes up approximately one-fifth of total federal spending.

Initially created to provide retirement income for workers over the age of 65, Social Security is funded through payroll taxes paid by workers and their employers. The program has undergone several changes over its nine-decade history in an effort to adapt to evolving economic and demographic realities while retaining its core mission of providing financial protection for our nation’s people.

Today, Social Security is a vital source of income for millions of retirees, disabled workers, and their family members. According to Social Security Administration (SSA) statistics from January 2025:

• Nearly 73 million Americans receive Social Security benefits.
• Most of these recipients (56 million) are adults aged 65 or older.
• More than 51 million retired workers receive benefits, in addition to 1.86 million spouses of retired workers and 714,000 children of retired workers.
• Survivor benefits are paid to 5.78 million children, widowers, and parents of deceased workers.
• Social Security Disability Insurance (SSDI) benefits are provided to more than 8 million Americans, including disabled workers, their spouses, and their children. Twelve percent of all Social Security benefits are disability benefits.
• Another 7.42 million people across the United States receive Supplemental Security Income (SSI) benefits. More than half of them are adults aged 18 to 64, while a third are 65 or older.

SSA describes Social Security as “one of the most successful anti-poverty programs in our nation’s history.” It is a crucial safety net for many older Americans, especially those with limited income.

Nearly nine out of 10 seniors received benefits in 2024, representing approximately 30 percent of the total income of older Americans.

For around half of seniors, Social Security provides at least 50 percent of their income; for about one in four seniors, Social Security provides at least 90 percent of their income. The average monthly benefit amount for retired workers is $1,975.34, or just over $23,700 annually.

The Center on Budget and Policy Priorities (CBPP) estimates that, without Social Security, almost 4 in 10 seniors would have incomes below the official poverty line.

Financing Gap Threatens Social Security Benefits

Social Security has a pay-as-you-go structure that means today’s revenues fund benefits paid to current recipients. Funds are deposited into two trust funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund.

Reserve funds, generated when program revenues exceed benefits, are kept in the trust funds and invested in U.S. government securities, such as bonds. These reserves supplement revenues to meet the government’s payment obligations.

The last significant changes to Social Security were made in 1983 under President Ronald Reagan to address the looming insolvency of the trust funds. Raising the retirement age and other reforms were expected to extend the solvency of the trusts by 75 years, and from 1983 to 2009, Social Security ran a surplus. But since 2010, Social Security revenues have fallen below outlays and the trust funds are being depleted, mainly because more Baby Boomers are retiring.

According to a 2024 trustees report, Social Security trust fund reserves are projected to run out in 2035. At that time, revenues would only cover about four-fifths of scheduled benefits. To make up the difference, Social Security benefits would need to be reduced by about 20 percent to 25 percent.

Only Congress has the authority to modify the Social Security program and ensure its long-term viability. However, there are only two general options for reforming Social Security: reduce program costs by lowering current or future benefit amounts for some or all groups of beneficiaries, or increase program revenues, either by raising taxes or adding new sources of revenue.

Americans’ Views on Social Security

It is amid this backdrop that the National Academy of Social Insurance, AARP, the National Institute on Retirement Security, and the U.S. Chamber of Commerce conducted a survey to gauge Americans’ preferences about how to fix Social Security’s long-term financing gap. Their findings are published in a new report released in January 2025.

Social Security at 90: A Bipartisan Roadmap for the Program’s Future finds that Americans are united in their support for Social Security and their desire to see it strengthened. Some of the key takeaways are:

• Social Security is crucial for Americans’ retirement. Across demographics, 81 percent of future retirees say it will be important to their monthly income.
• Most Americans favor strengthening the program’s finances through increased revenues. Eighty-five percent of respondents want to either maintain current benefits or increase them, even if it requires raising taxes on some or all Americans.
• They prefer changes that close the financing gap and improve benefits. The favored plan includes:
  • Removing the payroll tax cap for earnings over $400,000
  • Gradually increasing the payroll tax rate from 6.2 percent to 7.2 percent
  • Adjusting COLA to better reflect inflation and the spending habits of older adults
  • Providing a caregiving credit for those caring for children under 6
  • Offering a bridge benefit for older workers with physically demanding jobs
  • Reducing benefits for high-income retirees
• SSDI and SSI protections are valuable to many Americans. The vast majority (90 percent) say that SSDI would be important to their income if they experienced a work-limiting disability, including 71 percent who said it would be “very important.”
  
  Americans also express strong bipartisan support for reforming SSI, which provides modest income support to low-income Americans who are 65 and older and/or disabled and have very limited resources. SSI is not funded by the Social Security trust funds and its rules, including a $2,000 asset limit, have not been updated in decades.

Beyond these main findings, Americans favor of the following Social Security reforms:

• Using general government tax revenue to fund Social Security. Two-thirds of respondents support this idea.
• Increasing administrative funding for the SSA. SSA staffing is at its lowest level in 50 years. Americans favor giving SSA increased administrative funding — a move that could improve customer service and wait times for disability claims — by a 2-to-1 margin.
• Eliminating taxes on Social Security benefits: Beneficiaries with significant non-Social Security income pay taxes on part of their benefits if their total income exceeds a set threshold, a policy that affects around 40 percent of current beneficiaries. Around half of respondents support ending this tax and 33 percent oppose ending it. President Trump has proposed eliminating taxes on Social Security benefits.
• Raising SSI asset limits. Two-thirds of respondents support increasing SSI asset limits.

Closing Thoughts

The report concludes that “The message to Washington is clear: rather than see the gap closed by reducing benefits, Americans want to see Social Security secured and strengthened through additional revenues, and they are willing to pay more to bolster the program’s finances.”

AARP’s Chief Public Policy Officer said that the survey shows “virtually all Americans want their Social Security benefits to be preserved and are willing to do what it takes to ensure the program continues to provide meaningful support for future generations.”

The CBPP stresses that there is “no imminent crisis” in the Social Security system, and lawmakers have time to put the program on solid financial footing. However, it also notes that changes should be made as soon as possible to give workers enough time to plan their work, savings, and retirement.

If you’re concerned about the future of Social Security, there are steps you can take in older adulthood to reduce your reliance on the program and improve your retirement security. A 2023 study found that working with a financial advisor can be helpful. An elder law attorney has a role to play as well.

Find a local attorney who can help you understand the different Social Security benefit programs and work with you to create a plan that gives you financial independence into your later years.

As we look toward the future, strengthening Social Security is crucial to ensuring financial stability for older generations. At Chubb Law Firm PC, we understand how important it is to plan ahead and secure your retirement. If you need assistance navigating Social Security benefits or creating a strategy for financial independence in your later years, contact us today. Call Chubb Law Firm, PC at (916) 241-9661 to schedule a consultation.

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