Americans have ideas about how to prevent Social Security from going broke, but there is one proposed solution they really don’t like. It is no secret that the nation’s Social Security program faces an uncertain future. The retirement trust fund is projected to face a shortfall.
Recently, more than 2,200 Americans ages 21 or older were surveyed by the National Academy of Social Insurance, the National Institute on Retirement Security, and the U.S. Chamber of Commerce. These Americans were asked about potential changes to the Social Security system that might address its long-term financing gap. Based on the survey respondents’ feedback, here are the two potential changes that get the strongest support across all political and demographic groups—and the one that elicited the strongest aversion.
The first proposed policy option is to “Keep the current taxable earnings cap and collect Social Security contributions on earnings above $400K.” Survey respondents felt a strong preference for this option. As Social Security struggles to meet future obligations, Americans would like to see payroll taxes raised for high earners. Currently, the maximum income subject to Social Security payroll taxes is $176,200 for 2025.
Americans favor higher payroll taxes
Survey respondents would like to see those who earn more than $400,000 pay more into the system. The second proposed policy option is to “Increase the tax rate from 6.2 percent to 7.2 percent for both employees and employers.” Survey respondents also felt a strong preference for this option.
While many Americans would like to see payroll taxes raised on the wealthy, they also are willing to sacrifice some of their own income to help shore up Social Security. Currently, the payroll tax is 12.4%, split between workers and their employers. Self-employed individuals must pay the entire 12.4% themselves.
Survey respondents express support for gradually raising the payroll tax to 14.4% to stabilize Social Security’s future. However, there was one proposed policy option that survey respondents felt a strong aversion to: “Gradually raise the full retirement age from 67 to 69.”
Initially, 65 was the full retirement age for Social Security, which has been gradually increased to 67 to improve the program’s finances. Some politicians and pundits have suggested raising the full retirement age again, but survey respondents strongly disapproved of such a solution.
The survey highlights the complex perspectives Americans hold regarding changes necessary to secure Social Security’s future. While higher taxes on wealthier Americans and increased payroll tax rates are favorable, extending the retirement age remains highly unpopular.