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Newsweek
31-07-2025
- Business
- Newsweek
American's Trust in Social Security Is Falling
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Social Security forms the bedrock of income for tens of millions of Americans. But trust in the retirement and disability benefit system is eroding, according to a new report. A survey of 3,599 Americans conducted by the nonpartisan organization AARP found that confidence in the future of the Social Security system has declined 7 percentage points since 2020, down from 43 percent in 2020 to 36 percent in 2025. There are several reasons some Americans have waning confidence in the program, which pays out retirement, survivor, spousal and disability benefits to more than 74 million people. Thirty one percent said they "don't trust the government to keep promises" and 27 percent said they weren't confident because the money that funds Social Security is "running out." There are also divides across age groups. Younger adults are more likely to base their confidence in Social Security on its long history, with 38 percent of those aged 18 to 49 citing this reason, compared to 25 percent of those aged 50 and older. Older Americans are more likely to cite trust in the government as a reason for their confidence, with 27 percent of those aged 50 and older doing so, compared to 16 percent of younger adults. A Social Security card with U.S. dollars. A Social Security card with U.S. dollars. GETTY Social Security Trust Funds The report does not delve into specific reasons why the public is becoming less confident about Social Security. But while current benefit payments remain the same, the trust funds that shore up benefit payments are scheduled to run dry in 2034. The program is funded by a combination of payroll taxes and government reserve funds. According to the latest Social Security Trustees report, the program's two trust funds—the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) funds—when combined are projected to reach insolvency by 2034. At that point, benefits would rely entirely on incoming payroll taxes, resulting in an automatic cut of about 21 percent, unless Congress intervenes. Several lawmakers, both Democrat and Republican, have put forward options for solving the looming shortfall. The AARP report also found that almost two-thirds of all adults don't understand the implications of the trust funds running out. Only 34 percent indicated they understand benefits will be reduced, while 36 percent believed benefits would stop entirely and 28 percent they didn't know. It also found that 21 percent think Social Security retirement payments will be cut by at least half once the trust fund is depleted. Social Security Is A 'Contract' Despite waning confidence, Americans are still overwhelmingly supportive of Social Security, seeing it as a way "to protect their financial security and improve the common good." When asked they agree or disagree with the statement "even though I think I might be able to do better on my own, I think it's important to continue to contribute to Social Security for the common good," 79 percent said they agreed, although this has dropped from 82 percent in 2020. Democrats are more likely than Republicans or independents to believe it is important to contribute to Social Security for the common good, with 86 percent expressing this view compared to 74 percent of independents and 73 percent of Republicans. AARP said that opportunities to ensure the long-term financial security of Social Security should be taken. "Americans are interested in keeping Social Security strong for future generations," the report reads. "Social Security is the cornerstone of retirement security, but it faces a gap in funding that must be addressed in the next eight years to remain fully funded."
Yahoo
09-07-2025
- Business
- Yahoo
Cassidy, Kaine propose new funding trust for Social Security
Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.) proposed a new method to account for the expected lapse in the Social Security Trust Fund. A June report from the program's Old-Age and Survivors Insurance (OASI) fund would only be able to cover '100 percent of total scheduled benefits until 2033,' while the Disability Insurance (DI) trust fund is estimated to be able to pay '100 percent of total scheduled benefits through at least 2099.' However, Cassidy and Kaine say trust fund investments should be diversified in order to maintain the available Social Security benefits. 'We propose creating an additional investment fund — in parallel to the trust fund, not replacing it — that would be invested in stocks, bonds and other investments that generate a higher rate of return, helping keep the program from running dry,' Cassidy and Kaine wrote in a Tuesday op-ed for The Washington Post. The two estimate that it would take a $1.5 trillion up-front investment into the fund to get it going, while suggesting the Treasury fund the accounts for 75 years. 'The Treasury would temporarily shoulder the burden of providing benefits to Social Security beneficiaries — but when the new fund's 75 years are up, it would pay the Treasury back and supplement payroll taxes to help fill the future gap,' the senators said. Cassidy and Kaine said their program would work, citing the National Railroad Retirement Investment Trust, which was created by Congress in 2001 and successfully provided retirement benefit payouts for railroad workers. 'The trust has remained firmly in the black, with returns even exceeding expectations at some points and with payments consistently remaining reliable and on schedule,' the lawmakers said. 'Our proposal is also consistent with virtually every other pension plan — state and private — currently operating in our country, and it matches the strategy most nations use to fund their retirement programs,' they added. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
09-07-2025
- Business
- Yahoo
Cassidy, Kaine propose new funding trust for Social Security
Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.) proposed a new method to account for the expected lapse in the Social Security Trust Fund. A June report from the program's Old-Age and Survivors Insurance (OASI) fund would only be able to cover '100 percent of total scheduled benefits until 2033,' while the Disability Insurance (DI) trust fund is estimated to be able to pay '100 percent of total scheduled benefits through at least 2099.' However, Cassidy and Kaine say trust fund investments should be diversified in order to maintain the available Social Security benefits. 'We propose creating an additional investment fund — in parallel to the trust fund, not replacing it — that would be invested in stocks, bonds and other investments that generate a higher rate of return, helping keep the program from running dry,' Cassidy and Kaine wrote in a Tuesday op-ed for The Washington Post. The two estimate that it would take a $1.5 trillion up-front investment into the fund to get it going, while suggesting the Treasury fund the accounts for 75 years. 'The Treasury would temporarily shoulder the burden of providing benefits to Social Security beneficiaries — but when the new fund's 75 years are up, it would pay the Treasury back and supplement payroll taxes to help fill the future gap,' the senators said. Cassidy and Kaine said their program would work, citing the National Railroad Retirement Investment Trust, which was created by Congress in 2001 and successfully provided retirement benefit payouts for railroad workers. 'The trust has remained firmly in the black, with returns even exceeding expectations at some points and with payments consistently remaining reliable and on schedule,' the lawmakers said. 'Our proposal is also consistent with virtually every other pension plan — state and private — currently operating in our country, and it matches the strategy most nations use to fund their retirement programs,' they added. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
08-07-2025
- Business
- The Hill
Cassidy, Kaine propose new funding trust for Social Security
Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.) proposed a new method to account for the expected lapse in the Social Security Trust Fund. A June report from the program's Old-Age and Survivors Insurance (OASI) fund would only be able to cover '100 percent of total scheduled benefits until 2033,' while the Disability Insurance (DI) trust fund is estimated to be able to pay '100 percent of total scheduled benefits through at least 2099.' However, Cassidy and Kaine say trust fund investments should be diversified in order to maintain the available Social Security benefits. 'We propose creating an additional investment fund — in parallel to the trust fund, not replacing it — that would be invested in stocks, bonds and other investments that generate a higher rate of return, helping keep the program from running dry,' Cassidy and Kaine wrote in a Tuesday op-ed for The Washington Post. The two estimate that it would take a $1.5 trillion up-front investment into the fund to get it going, while suggesting the Treasury fund the accounts for 75 years. 'The Treasury would temporarily shoulder the burden of providing benefits to Social Security beneficiaries — but when the new fund's 75 years are up, it would pay the Treasury back and supplement payroll taxes to help fill the future gap,' the senators said. Cassidy and Kaine said their program would work, citing the National Railroad Retirement Investment Trust, which was created by Congress in 2001 and successfully provided retirement benefit payouts for railroad workers. 'The trust has remained firmly in the black, with returns even exceeding expectations at some points and with payments consistently remaining reliable and on schedule,' the lawmakers said. 'Our proposal is also consistent with virtually every other pension plan — state and private — currently operating in our country, and it matches the strategy most nations use to fund their retirement programs,' they added.
Yahoo
23-04-2025
- Business
- Yahoo
SSA Worker: Why DOGE Could Be ‘Sabotaging' Social Security — and How That Affects You
Social Security has long been considered the untouchable 'third rail' of American politics. But a seasoned Social Security Administration (SSA) employee predicts that the upheaval resulting from recent restructuring initiatives implemented by the Department of Government Efficiency (DOGE) is intended to 'destroy Social Security from the inside.' Check Out: Read Next: In an interview with The Daily Beast1 published on April 8, SSA claims technical analyst Rennie Glasgow said, 'We're being pushed to ensure that we cannot perform effectively and efficiently, so that they can privatize. 'I'm almost certain that the goal is privatization for this agency because there's a lot of money they want to get their hands on,' he said. Glasgow, a 15-year veteran of SSA and vice president of Local 3343 of the American Federation of Government Employees, which represents SSA workers, noted that the SSA is remarkably cost-efficient, spending just 1% of its budget on employee costs. In fact, the total administrative costs from both of Social Security's trust funds is less than 1%, according to the SSA.2 Glasgow's suspicion stems in part from workforce reductions that have increased wait times for phone help and in-person assistance. Exacerbating the delays are daily system outages that render staff at Glasgow's Schenectady, New York, office unable to help individuals who might already have waited several hours for their turn at a window. Also concerning is DOGE's demand for secure access to SSA databases — a move Glasgow said circumvents strict controls on beneficiary information and essentially allows DOGE to make up its own rules as it goes. Glasgow is not the only one who suspects that the DOGE-induced chaos is part of a concerted effort to discredit Social Security program operations. Earlier this month, Alex Jacquez, a former National Economic Council senior policy advisor and current chief of policy at Groundwork Collaborative, told Fortune,3 'My view is that the ultimate goal here is what has been the holy grail for Republicans for decades now, which is to privatize the Social Security Administration and privatize Social Security. 'There's already a long list of things that Elon [Musk] and the administration have basically floated as being services that they want the private sector to take over,' Jacquez said. President Donald Trump says his administration won't touch Social Security, and Frank Bisignano, Trump's nominee for SSA commissioner, has denied hearing or thinking of plans for privatization.4 However, Musk is a vocal critic of Social Security. He has called the program a Ponzi scheme and made unsubstantiated accusations, often amplified by Trump, that the SSA is engaging in fraud5 — despite a 99.97% payment accuracy rate for Old-Age, Survivors and Disability Insurance, according to the Office of the Inspector General.6 As Glasgow noted, customer service is already suffering under the weight of cutbacks. That could get worse amid regional office closures and the loss of field and hearing offices due to lease terminations. But if his suspicions about privatization are correct, the restructuring could have a significant impact on Social Security benefits as well. Under the current system, Social Security payroll taxes go into trust funds that invest the money in U.S. Treasuries, which offer predictable but low returns compared to the stock market. Privatization would allow beneficiaries to invest some or all of their payroll withholdings. Proponents say these investments could result in larger nest eggs because of higher returns. Privatization opponents point out that Treasuries are extremely safe because they're backed by the full faith and credit of the U.S. government. That safety allows the SSA to guarantee your Social Security retirement benefits. Stock market returns, on the other hand, are unpredictable and never guaranteed, so your retirement benefits couldn't be guaranteed, either. It's important to remember that Social Security is only meant to replace about 40% of income at full retirement age, which is currently 67. However, a survey by The Senior Citizens League7 found that two-thirds of America's seniors rely on Social Security benefits for more than half of their income, and nearly half of seniors rely on it for 76% to 100% of their income. While higher benefits would have obvious advantages, they'd come at the expense of the safety net millions of seniors rely on to ensure that their most basic needs are met after they leave the workforce. Sources The Daily Beast, 'I Know Musk's Secret Blueprint to Destroy Social Security from The Inside.' (April 9, 2025) ︎ Social Security Administration, 'Social Security Administrative Expenses.' ︎ Fortune, 'Elon Musk's DOGE is undermining the Social Security Administration's technology and operations, former White House official says.' (April 1, 2025) ︎ ABC News, 'Trump SSA pick not seeking to privatize Social Security, will meet people 'where they want to be met.'' (March 25, 2025) ︎ NPR, 'Former head of Social Security says Elon Musk and DOGE are wrong about the agency.' (March 24, 2025) ︎ Payment Accuracy, 'Annual Improper Payments Datasets.' ︎ The Senior Citizens League, 'Two-Thirds of Seniors Rely on Social Security for More Than Half Their Income.' (Nov. 5, 2024) ︎ More From GOBankingRates 5 Luxury Cars That Will Have Massive Price Drops in Spring 2025 4 Things You Should Do if You Want To Retire Early These 10 Used Cars Will Last Longer Than an Average New Vehicle 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on SSA Worker: Why DOGE Could Be 'Sabotaging' Social Security — and How That Affects You
