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Solving Social Security: Ensuring Long-Term Stability

by

Joel Eskovitz, AARP Public Policy Institute

 
Published August 23, 2018

Congress has not significantly altered the program since 1983. Meanwhile, multiple demographic and socioeconomic changes in the interim have led to long-term financial challenges. Without legislative action, beginning in 2034 Social Security would still be able to pay roughly three-quarters of benefits for the remainder of this century. But a reduction of this size would compromise the economic security of beneficiaries, particularly those with low and moderate incomes who rely on Social Security the most.

Lawmakers can pursue a variety of options to fix the program’s long-term shortfall by changing how it pays benefits or obtains revenue. The longer Congress waits, however, the harder and more dramatic those fixes will need to be.