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AIPROPX ReportFortune · 2h ago
Social Security is celebrating its 91st birthday. It won’t live to 100, watchdog warns
Social Security is celebrating its 91st birthday Friday—yet a prominent fiscal watchdog is warning that, without congressional action, the program in its current form may not survive to its centennial.
The Committee for a Responsible Federal Budget marked the occasion by noting that the retirement program’s trust fund is projected to be depleted in six years, triggering an automatic benefit reduction of about 22% under current law. For the average beneficiary, the group estimates, that would amount to roughly $500 less a month—a cut larger than the average retired household’s monthly grocery spending.
“As policymakers blow out the candles on Social Security’s 91st birthday,” CRFB President Maya Macguineas said , “they are doing far too little to ensure its continued longevity. Social Security won’t make it past age 97 as things currently stand – at least not in its current form.”
The best birthday gift for Social Security would be a solvency package, she said, to ensure that its 70 million beneficiaries and 237 million contributors know they’ll still have benefits, six years from now.
The warning underscores the narrowing political window for an issue Washington has repeatedly deferred. Social Security is financed primarily through payroll taxes, but aging demographics and a comparatively smaller working-age population have left the system paying out more than it takes in. Once the retirement trust fund is exhausted, the program would still collect payroll-tax revenue—but it could not legally borrow to cover the difference, requiring payments to be cut to match incoming funds.
A costly choice
The group said simply substituting general federal revenue for the missing trust-fund dollars would not resolve the underlying financing problem. It estimates that approach would add $190 trillion to federal debt over 75 years, while fundamentally changing Social Security from a self-financed contributory program.
That puts policymakers in an increasingly familiar bind: raise more revenue, curb the growth of future benefits, change eligibility rules, or combine elements of all three. Each path carries political consequences, particularly for a program whose beneficiaries include older Americans living on fixed incomes and workers who have paid payroll taxes throughout their careers.
The committee has floated several possible measures through its Trust Fund Solutions Initiative, including changes to taxation of Social Security benefits, a cap on cost-of-living adjustments for higher earners, an employer-side compensation tax, and limits on benefits for some higher-income couples.
The impact would be widespread
The consequences of inaction would not be confined to retirees. In a recent state-by-state analysis, the group found that average benefit cuts would exceed $500 in 29 states. In the hardest-hit states, it estimated that as much as 22% of the population could be affected and the economic damage could equal as much as 1.9% of gross domestic product.
The group is pushing Congress to create a bipartisan commission or similar process to develop a long-term package, arguing that such structures have helped build consensus around prior Social Security overhauls. The last major bipartisan reform, enacted in 1983, extended the system’s solvency for roughly five decades.
For now, Social Security’s birthday remains a celebration of one of the New Deal’s most durable achievements. But the watchdog’s message is that the anniversary should also serve as a deadline warning: The country has time to avoid abrupt cuts—but considerably less time to avoid difficult choices.
For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.
Social SecurityCRFB's Maya MacguineasThe CommitteeResponsible Federal BudgetSocial Security’sCRFB President Maya MacguineasWashingtonOnceEachAmericansTrust Fund Solutions InitiativeCongress
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