Social Security was established 80 years ago. Since then, it has been a safety net for millions of people. People who are not able to invest anywhere else invest in Social Security to ensure safety after retirement.
For millions of senior Americans, Social Security has been a financial lifeline. The average monthly payout as of February 2025 is $1,980.86. It may not seem like much, but most retirees find it indispensable.
About 80–90% of retirees depend on these benefits to cover their essential expenses. Social Security serves as the foundation of many people’s retirement income. No one denies that it is an integral part of the American economy.
However, alarm bells have been going off for social security benefits for some time now. They are facing increasing financial strain. The Trustees’ Report on the Social Security deficit came out in 2024. It painted a dismal picture of a $23.2 trillion suspected long-term shortage.
This is not an unexpected problem and has been predicted for the last 40 years. It is expected to get worse as life expectancy rises and fertility rates fall. The program is at capacity to fulfill its commitments for the current generation of retirees.
No one expects this program to run smoothly for future generations, with a vast difference between contributions and payouts.
Lie, lie lie Specifically, the report stated that the Old Age and Survivors Insurance (OASI) Trust Fund, which helps pay the benefits for current retirees (among other eligible Americans), was scheduled to be depleted in 2033, a year earlier than was believed the year prior. pic.twitter.com/qB0Vq28HSA
— R. Smith (@chubby2600) January 14, 2023
Social Security has one very important component- The Old Age and Survivors Insurance (OASI) trust fund. It is the main cause of concern. OASI works on the reserve that SSA has. If the government does not come up with a solution soon, the reserve will run out. Experts have even predicted it to happen by 2033.
The OASI program can be supported by income tax revenue. However, only about 77% of scheduled payouts will be covered. This can cause a major drop in monthly benefits for retirees.
Fox: A new independent analysis just found that Social Security would run out in six years if Trump’s agenda is enacted pic.twitter.com/3AFRoONPqS
— Kamala HQ (@KamalaHQ) October 23, 2024
People have been scrambling to place the blame for the unjust system on someone. The easiest target is immigrants. However, it’s not that simple. Experts have pointed out that working-age immigrants actually support the system by paying payroll taxes.
This is completely against the public opinion that immigrants (legal or illegal) do not pay taxes. They may pay almost 100 billion in taxes (2022) and majorly support Social Security without any promise of benefits.
Undocumented immigrants paid hundreds of billions of dollars in taxes over the last 10 years — while 6 tech giants dodged $278 billion while raking in tax breaks and government contracts.
But somehow immigrants are the problem. pic.twitter.com/kY5etCGEIx
— Melanie D’Arrigo (@DarrigoMelanie) April 16, 2025
Bringing in younger employees could help balance the age distribution. It will bring in new money to a system that is becoming more and more reliant on retirees.
Congress needs to start planning and finding solutions. The majority of the younger generation does not pay in on 401K. Encouraging people to make 402K deposits is essential for current and future generations.
Policymakers must make difficult choices in the future. There are few choices—they can increase the retirement age, increase taxes, cut certain benefits, etc. However, none of these will be met with public approval.
Making sure the top 1% pay their dues is the only way to move ahead and make Social Security solvent, especially when the government is so adamant about giving ultra-rich tax cuts.
The argument over how to save Social Security is getting intense every year. What is still certain is that without careful change, the program cannot continue to exist. The cornerstone of the American economy may itself be getting wobbly and the country absolutely cannot afford it.
