The clock is ticking with the Social Security trust funds’ estimated depletion in the next decade. Image: Steve Heap/Shutterstock.com
While only 4 percent of respondents to a survey said that Congress should “do nothing” about the Social Security system’s finances, there is little consensus on what to do, says the TransAmerica Center for Retirement Studies.
Breaking down responses by generation, it found that Baby Boomers were generally the most supportive of making changes, with 78 percent saying that ensuring that Social Security can ensure it pays scheduled benefits should be a top national priority. That was the view, though, of only 40 percent of Gen Z, 52 percent of Millennials and 64 percent of Gen X. (There was a similar pattern regarding addressing Medicare’s long-term financing.)
Baby Boomers also were the most supportive of possible steps on Social Security: 48 percent were supportive of increasing the maximum earnings that are subject to Social Security payroll taxes and 40 percent of increasing the payroll tax rate. For the other three generations, positive responses ranged from 37 to 40 percent for the former and from 35 to 38 percent for the latter.
Baby Boomers also were the most supportive of raising the age at which full benefits can be drawn while Gen Xers—the oldest of whom are approaching eligibility—were the most opposed. Baby Boomers meanwhile were the least supportive of preserving benefits for those in greatest needs while reducing benefits for high-income retirees, with Gen Z the most supportive.
Across all generations, though, around a fifth said they “don’t know” what should be done.
“Workers are counting on Social Security for retirement income. The clock is ticking with the Social Security trust funds’ estimated depletion in the next decade. The sooner Congress takes action, the more time workers will have to adjust their financial plans, if needed, before they retire. The longer Congress waits, the more disruptive the changes could be,” a summary said.
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