Americans, on the whole, are unsure about the future of Social Security. They are worried about its future, but also don’t want to make any changes to the program that could jeopardize their own benefit levels when they reach eligibility. Emily Ekins and Hunter Johnson explain the results of a Cato Institute survey on the subject, writing:
A new survey of 2,000 Americans from the Cato Institute in collaboration with YouGov finds that 83% of Americans have a favorable view of Social Security. This support spans party lines: 90% of Democrats, 82% of Republicans, and 81% of independents hold positive views. Most workers (82%) also expect Social Security to fund at least part of their income during retirement.
Yet, Americans express deep concerns about the program’s future. Seven in 10 Americans expect Social Security benefit cuts, and nearly a third (30%) believe the program will not exist when they retire (and 36% are unsure). A majority (58%) say Social Security offers younger workers a “worse deal” than current retirees receive, and nearly two-thirds (62%) believe Congress has broken its promises in managing the program. Notably, Democrats (60%) and Republicans (55%) agree that younger workers are getting a worse deal, and 58% of both groups believe Congress has broken its promises.
Americans underestimate the severity of Social Security’s financial problems, with 76% unaware that the program is extremely underfunded. When informed that benefits could be cut by nearly a quarter starting in 2033, almost half (44%) say the problem was more serious than they realized. This broad lack of public understanding poses a major obstacle to reform.
Americans favor small, targeted reforms, such as freezing benefits for one year (57%) or slowing cost-of-living adjustments (58%), that fit with their belief that Social Security is essentially a retirement savings plan they paid for (60%) rather than a welfare program (24%). But the public solidly opposes most major structural reforms required to address the long-term financing shortfall, including cutting benefits for current and future retirees (77%), cutting benefits just for future retirees (67%), paying benefits only to seniors in financial need (67%), or raising the retirement age to 70 (65%). Americans initially appear open to tax increases—for instance, 55% would support raising the payroll tax from 12.4% to 16.05%. But support collapses when framed in dollar terms: 77% oppose even a $1,300 annual tax increase—below what would be necessary to maintain current benefit levels. Moreover, 61% oppose tax hikes if current workers weren’t guaranteed to get back what they contributed.
Action Line: The unsustainability of the current Social Security system demands that changes be made. Americans must be ready to survive with or without Social Security benefits. When you want to talk about your retirement, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
