Social Security marks its 90th anniversary — here’s what could happen to future benefits

The gram would still have income from payroll taxes to help fund benefit payments.That scenario is not inevitable

Changes to the gram may be enacted sooner to shore up its funding and prevent sudden benefit cuts.Most, 83%, of surveyed Americans think Social Security reform should be a top priority for Congress, even if it means benefit cuts or tax increases for future beneficiaries, according to a new poll from the Bipartisan Policy Center's American Savings Education Council

The group polled more than 4,000 adults."This is the time for action," said Sen

Because the money would be held in escrow and could be liquified, it would not increase the national debt, Cassidy said.The funds would be invested more aggressively than Social Security's current trust funds, which are invested in U.S

Because those investments are backed by the full faith and credit of the U.S. government, they are secure

However, the average rate of return over a one-year period was around 2.5% in 2024.In contrast, the S&P 500 has returned an annual average of around 10%, though those results vary from year to year. the posed separate investment fund in stocks, bonds and other investments could cover an estimated 70% of Social Security's trust fund shortfall, Cassidy said

That would make it much more doable for lawmakers to address the remaining 30%, he said.watch now4:3204:32Sen

Bill Cassidy on Social Security: posing changes to Social Security trust fundSquawk BoxThe senators' plan does not include any benefit cuts or tax increases for seniors, Cassidy said

It would vide benefit increases for two cohorts — beneficiaries age 80 and older who are at less than 200% of the federal poverty level, and low earners who have a long work history earning low wages.Lawmakers could consider increasing the size of the investment fund to help cover the rest of the shortfall, he said.Rights to manage the fund would be left to a bidding cess, which could result in lower fees and higher returns, Cassidy said.Critics, including Rep

John Larson, D-Conn., have said in other securities as the senators' plan suggests would privatize Social Security and therefore threaten Americans' retirement security.In response, Cassidy points to the federal Railroad Retirement system, which in 2001 moved from solely in government bonds to more aggressive instruments, including stocks

That change was apved by lawmakers on both sides of the aisle and has helped the gram operate with a positive balance today.Still, some experts are dubious.In a recent Wall Street Journal op-ed, Andrew Biggs, a senior fellow at the American Enterprise Institute, said while he applauded the first bipartisan plan to fix Social Security in two decades, he questions whether the plan could work.Among the concerns he details are the amount of money that the plan requires the government to borrow, as well as the increased investment risk that would be required without a guarantee of higher returns.Another posal calls for the wealthy to pay moreRep

The last time Social Security was meaningfully enhanced was in 1971 under President Richard Nixon, Larson said in an interview with CNBC.com.More than 5 million Americans currently receive below poverty-level checks from Social Security, according to Larson.Larson's most recent posal from 2023 would temporarily increase benefits for all beneficiaries, while also viding specific enhancements for those receiving minimum benefits; widows or widowers in two-income households; and children of deceased, disabled or retired workers who are full-time students

That includes a "significant majority" of respondents with annual household incomes over $200,000, according to the results.Larson's plan also called for a separate 12.4% tax on net investment income for taxpayers making over $400,000.Larson plans to reintroduce his plan in the current session of Congress with some tweaks."We'll be rolling out a presentation in September that will include not only tecting Social Security, but also enhancing it," Larson said.The plan will also make it Congress' responsibility to act more frequently to help ensure benefits continue to meet individuals' needs, he said."I think that that's got to be paramount to keeping this in check," Larson said.Larson plans to push for a vote on his bill

But he also wants an open debate."There has to be a public discussion," Larson said.What Americans want from Social SecurityA person holds a sign reading ' Our Social Security' in support of fair taxation near the U.S

Tax justice advocates att a rally to speak out against President Trump's tax cuts for the wealthy, and to urge members of Congress to intervene

Bryan Dozier | Afp | Getty ImagesMost Americans — 64% of Democratic voters and 61% of Republicans — want Congress to work together across party lines to reform Social Security, the Bipartisan Policy Center found in its recent poll.That's as 41% of surveyed Americans expect Social Security will be their primary source of income in retirement, according to the BPC

Moreover, 74% of Americans worry Social Security will run out before they retire, while 80% worry Congress will cut benefits.Nevertheless, the poll results show Americans would welcome a "comprehensive, balanced reform package that entails both benefit adjustments and tax increases," said Emerson Sprick, director of retirement and labor policy at the Bipartisan Policy Center.Increasing taxes on the wealthiest 1% to help repair the gram's finances had the most support among BPC's poll respondents, with 85% of Democrats and 72% of Republicans

The Social Security Fairness Act increased benefits for some public pensioners, while President Donald Trump's "big beautiful" budget and tax package vides a tax deduction for seniors.The changes in both laws will accelerate the trust fund depletion dates

The Fairness Act was included the Social Security trustees' jections

The more recent "big beautiful" legislation will move the insolvency date for the retirement trust fund to late 2032 up from the early 2033 trustees' jection, according to the Committee for a Responsible Federal Budget.Senators who are elected in 2026 will be in office during those jected depletion deadlines, Sprick said.As the trust fund depletion dates come closer, there will be more discussion Social Security's future on Capitol Hill, Sprick said

The current posals on Capitol Hill are a start, he said."We've put this off for way too long; the political cess moves very slowly," Sprick said. "But that does not negate the fact that these conversations are moving in the right direction."