Social Security in the US is heading for insolvency. Here are 3 ways to fix it — and how you can protect yourself

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Most American workers are astir apt alert that the Social Security strategy is facing a monolithic and imminent backing shortfall. But however imminent is it?

The program's Old-Age and Survivors Insurance (OASI) Trust Fund, which pays status benefits, could beryllium depleted successful conscionable six years, according to the Congressional Budget Office (CBO) (1).

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"That's 1 twelvemonth earlier than we projected," CBO Director Phillip Swagel said astatine a gathering held by the Subcommittee connected Fiscal Responsibility and Economic Growth (2). Swagel noted that the spot money for Part A of Medicare volition besides beryllium exhausted successful 2040 — a treble menace for older Americans.

When it comes to Social Security, that means if Washington doesn't get its enactment unneurotic by that deadline, each beneficiaries could look an automatic payment chopped by an mean of 28% betwixt 2033 and 2036, according to the CBO. Unfortunately, galore of the solutions projected by experts could beryllium conscionable arsenic painful, if not much uncomfortable, than an outright payment cut.

Here are 3 solutions for the Social Security backing occupation that lawmakers could beryllium considering.

1. Raising the status property

As of 2026, the afloat status property (FRA) for anyone calved aft 1960 is 67 years old, though astir workers go eligible for reduced benefits arsenic aboriginal arsenic 62, according to the Social Security Administration (SSA) (3).

One of the proposals by the CBO to code the shortage is to rise the FRA to property 70 for anyone calved aft 1981 (4). But this determination would person the aforesaid effect arsenic cutting presently scheduled benefits by 20%, according to an investigation by the Center connected Budget and Policy Priorities (5). The aforesaid investigation besides claims the interaction connected beingness benefits could beryllium magnified for low-income retirees, arsenic this cohort has a little beingness expectancy connected average.

Simply put, this determination could some support you moving longer and little the wide payout you person successful retirement.

Read More: Non-millionaires tin present hoard spot similar the 1% — however to commencement with arsenic small arsenic $100

2. Raising taxes

Hiking taxes is mostly unpopular, but it's arguably adjacent much unpopular during an affordability crisis.