Questions for Solutions

If we act soon to shore up Social Security’s long-term solvency, we can avoid these tough benefit cuts. The sooner we act, the more policy options we have to choose from.

Multiple vintage clocks held in hands with a purple paper question mark taped in the center.

At Free the Facts, we believe problems aren’t partisan. Social Security’s solvency isn’t determined by party or ideology. It’s determined by simple math—revenue in, benefits out.

We also believe that the key to solving this problem is ensuring voters and leaders have reliable information so they can engage in a meaningful conversation about the program and its future.

Now that you understand how Social Security works and the challenges it faces, you’re ready to ask the tough questions about solutions.

Your answers to those questions will be guided by your own experiences, values, perspective, and identity. They will depend on what you think about things like the proper role of the federal government, the size of our social safety net or welfare programs, and your position on tax policy.

Our mission is not to tell you what to think; it’s to make sure that you can. We provide the information. You use it to draw your own conclusion.

In that spirit, our organization does not advocate for one specific solution or policy proposal.

Instead, we’ve provided you with questions about solutions. These are questions that we’re often asked when we meet with groups across the country. We’ve organized these questions by solution type, and as food for thought, we’ve paired them with articles that offer a good introduction to the conversation about the proposed change. Our hope is that these resources get you interested—and involved—in finding a solution for Social Security’s challenges.

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TAX CHANGES

One way to extend Social Security’s solvency is to bring in more money. People who favor this approach are usually interested in changing the payroll tax so that it generates more revenue.

The payroll tax: The FICA/SECA payroll taxes that fund Social Security are currently set at a combined 12.4%.

Question: Should we increase this tax? If so, by how much?

Check out this piece from the AARP, which outlines the case for and against an increase.

The taxable maximum: The maximum taxable earnings are capped each year with the limit for 2026 being $184,500.

Question: Should we change the taxable maximum? If so, should we raise it to a higher income level? Or should we remove it altogether?

Check out this article from the Peter G. Peterson Foundation, which discusses the pros and cons of raising the taxable maximum.

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BENEFIT CHANGES

Another way to extend Social Security’s solvency is by finding ways to spend less money. People who favor this approach are generally interested in solutions that involve benefit changes.

The Retirement Age: In the 1980s, the last time Social Security faced insolvency, we changed the full retirement age.

Question: Should we increase the age now?

Check out this write-up from Free the Facts about the Greenspan Commission, whose work in the 1980s led to the increase in the retirement age.
Check out this article from the Bipartisan Policy Center to find out what raising the full retirement age would look like.
Take a look at this proposal from the Center for Retirement Research on tying the retirement age to income.

The COLA calculation: Above we talked about the cost-of-living adjustment (COLA), an annual adjustment to the dollar amount of Social Security benefits. This adjustment ensures benefits keep pace with inflation and maintains the same level of purchasing power in the economy.

Question: Should we change the way the COLA is calculated, potentially slowing the future growth of benefits?

Check out this article from USA Today about the debate over proposed changes to the way the COLA is calculated.

Comprehensive Resources that Discuss These Changes and More

The Congressional Budget Office (CBO) offers an online, interactive tool that allows you to see the solvency impact of seven different changes for Social Security: four that reduce benefits, three that increase revenue.