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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.
New York Post
20-06-2025
- Business
- New York Post
Americans face vastly different retirement costs across states as Social Security cuts loom
Retirement remains top of mind for many Americans, whether they are approaching their so-called 'golden years' or have many years to go before leaving the workforce. How much money a person needs to have saved to retire without financial stress is an important consideration in the retirement preparation process, and that can vary depending on various factors, including where someone intends to live and their retirement income sources. Advertisement A study released this week by GOBankingRates calculated the amount of money that a 'comfortable' retirement would require without income from Social Security factored in and the associated yearly expenses a retiree would face in each U.S. state. The analysis comes as Social Security, a common source of retirement income, is looking at potential financing issues with its trust funds in the future. 8 Pompano Beach, Florida. Matthew Tighe – The trustees for Social Security and Medicare recently found that if Social Security's Old-Age and Survivors Insurance and Disability Insurance trust funds were combined, the trust funds would be able to pay 100% of scheduled benefits until 2034, one year earlier than reported last year. After that, the trust funds would be able to pay only 81% of scheduled benefits, meaning Social Security recipients would see a mandatory 19% cut automatically. Advertisement For the GOBankingRates study, the benchmark for a 'comfortable' retirement was a person holding twice the amount of money as the cost of living expenses. Hawaii tops the list of where the most savings would be necessary to retire 'comfortably' at 60 years old without Social Security, while West Virginia, nicknamed the Mountain State, required the least, it said. 8 For the GOBankingRates study, the benchmark for a 'comfortable' retirement was a person holding twice the amount of money as the cost of living expenses. InsideCreativeHouse – GOBankingRates found the nest egg that a person would need to accommodate a comfortable retirement at 60 years old sans Social Security in each state. Advertisement Alabama ($70,492 cost of living per year): $1,409,839 Alaska ($110,457 cost of living per year): $2,209,137 Arizona ($100,281 cost of living per year): $2,005,627 Arkansas ($67,502 cost of living per year): $1,350,045 Advertisement California ($155,117 cost of living per year): $3,102,333 Colorado ($114,744 cost of living per year): $2,294,882 Idaho ($101,912 cost of living per year): $2,038,236 8 Aerial view of Nantucket Island. Kevin – Illinois ($79,736 cost of living per year): $1,594,716 Indiana ($74,029 cost of living per year): $1,480,575 Iowa ($71,373 cost of living per year): $1,427,463 Kansas ($71,534 cost of living per year): $1,430,672 Advertisement Kentucky ($71,410 cost of living per year): $1,428,204 Louisiana ($67,482 cost of living per year): $1,349,639 Maryland ($101,991 cost of living per year): $2,039,812 8 Downtown Birmingham, Alabama, from Vulcan Park Robert Hainer – Advertisement Maine ($98,612 cost of living per year): $1,972,231 Massachusetts ($136,626 cost of living): $2,732,517 Michigan ($73,780 cost of living per year): $1,475,595 Minnesota ($88,321 cost of living per year): $1,766,414 Advertisement Mississippi ($65,523 cost of living per year): $1,310,451 Missouri ($73,667 cost of living per year): $1,473,335 Montana ($102,916 cost of living per year): $2,058,322 8 Waikiki Beach and Diamond Head, Oahu, Hawaii. tomas del amo – Advertisement Nebraska ($76,792 cost of living per year): $1,535,846 Nevada ($103,661 cost of living per year): $2,073,215 New Hampshire ($110,761 cost of living per year): $2,215,216 New Jersey ($118,338 cost of living per year): $2,366,765 New Mexico ($81,627 cost of living per year): $1,632,542 New York ($105,619 cost of living per year): $2,112,384 North Carolina ($86,857 cost of living per year): $1,737,146 8 The Brooklyn Bridge and the Manhattan skyline. jakartatravel – North Dakota ($78,734 cost of living per year): $1,574,682 Ohio ($73,120 cost of living per year): $1,462,391 Oklahoma ($69,161 cost of living per year): $1,383,214 Oregon ($111,541 cost of living per year): $2,230,814 Pennsylvania ($78,582 cost of living per year): $1,571,642 Rhode Island ($109,811 cost of living per year): $2,196,222 South Carolina ($81,586 cost of living per year): $1,631,721 South Dakota ($81,949 cost of living per year): $1,638,979 8 Teton Village homes at sunrise with fog in the valley. Nicole – Tennessee ($81,474 cost of living per year): $1,629,482 Texas ($81,985 cost of living per year): $1,639,693 Utah ($110,623 cost of living per year): $2,212,458 Vermont ($97,999 cost of living per year): $1,959,971 Virginia ($96,141 cost of living per year): $1,922,813 Washington ($126,952 cost of living per year): $2,539,048 West Virginia ($64,715 cost of living per year): $1,294,300 8 The analysis comes as Social Security, a common source of retirement income, is looking at potential financing issues with its trust funds in the future. lordn – Wisconsin ($84,485 cost of living per year): $1,689,700 Wyoming ($88,792 cost of living per year): $1,775,841 In early June, a Gallup survey found 50% of non-retired U.S. adults that own a retirement savings account felt they 'expect to have enough to live comfortably in retirement.' Confidence was lower among those that lacked a retirement savings account, with only 31% reporting they anticipated having sufficient funds for comfortable golden years.
