As concerns over the long-term sustainability of Social Security grow, many Americans are calling for significant changes to ensure the program continues to support current and future retirees. Recent studies reveal six key reforms that the public wants to see, ranging from tax adjustments to better benefits for vulnerable groups.
1. Removing the Payroll Tax Cap
Under current rules, only income up to a certain limit is taxed for Social Security purposes. In 2025, this limit is $160,200. Many Americans favor eliminating this cap, which would require higher-income earners to pay Social Security taxes on all their income, not just a portion. Proponents argue that this change could generate additional revenue to extend the program’s lifespan.
2. Gradually Raising Payroll Taxes
Another proposal is a gradual increase in the payroll tax rate, which currently stands at 6.2% for both employees and employers. Advocates suggest raising this rate incrementally to 7.2% over time. By making small, steady adjustments, supporters believe it would help shore up Social Security’s funding without causing a sudden financial burden on workers or businesses.
3. Increasing the Full Retirement Age
As life expectancy increases, many believe that the age at which retirees can claim full benefits should be adjusted accordingly. The current full retirement age is between 66 and 67, depending on the year of birth. A gradual increase to 69 or 70 is being considered to help reduce the strain on the system.
4. Boosting Benefits for Low-Income Retirees
To address the growing concern about financial insecurity among retirees, many Americans support raising benefits for low-income earners. This change would ensure that those who worked in low-paying jobs can still retire with dignity and maintain a basic standard of living.
5. More Accurate Cost-of-Living Adjustments (COLA)
Cost-of-living adjustments are essential to help retirees keep up with inflation, but many believe the current formula does not reflect the true expenses of seniors, especially when it comes to healthcare costs. Reforming the COLA calculation to better account for seniors’ needs could protect the purchasing power of benefits.
6. Providing Credits for Caregivers
Many caregivers, often women, take time out of the workforce to care for children or aging family members. This unpaid labor can result in lower Social Security benefits later in life. A popular proposed change is to offer caregiver credits within the system, ensuring that those who sacrifice years of paid work are not penalized in retirement.
Public Support Is Strong
A recent study by the National Academy of Social Insurance found that most Americans, regardless of political affiliation, support these reforms. The public’s clear message: protecting and strengthening Social Security is a top priority.
As Congress and policymakers consider options for reform, these six proposals provide a roadmap for ensuring the program’s longevity. With the right balance of financial sustainability and adequate benefits, Social Security can continue to be a vital safety net for millions of Americans.
