How to fix Social Security: the scale of tax increases and benefit cuts

Act in 2026

The report illustrates an immediate combined payroll tax increase from 12.40% to 16.65%, or a uniform 25.2% reduction for all current and future beneficiaries. These are alternatives for achieving solvency over the 75-year 2026–2100 projection period; combinations are possible.

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Wait until 2034

The comparable combined payroll tax rate rises to 17.30%, or benefits for all current and future beneficiaries would be reduced by 28.5%. These are alternative quantity examples for the same 75-year solvency objective, not a forecast of enacted policy.

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Why waiting costs more

With the same solvency objective through 2100, delaying action leaves fewer contribution years and fewer cohorts to share the adjustment. Larger changes then have to close the accumulated financing gap. This explains the direction of the examples; it is not an individualized actuarial estimate.

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What these examples do and do not mean

These Trustees Report examples show the magnitude needed to achieve 75-year solvency. They are not any proposal, do not represent a necessary outcome, and do not guarantee sustainable financing beyond 2100. The calculator shows a fixed 78% OASI baseline and the separate 28.5% delayed-reform comparison; it does not model the 25.2% cut or either tax increase.

See your benefit illustration ($2,000/month, claiming in 2035 for 20 years)

Frequently asked questions

Are these Social Security reform proposals?

No. They are Trustees Report examples of the scale of changes needed to achieve 75-year solvency, not proposals or predictions of what Congress will enact.

Does the tax rate include both worker and employer?

Yes. 12.40%, 16.65% and 17.30% are combined payroll tax rates, not employee-only rates.

Does the calculator model these tax increases?

No. It illustrates retirement benefit dollars at a fixed 78% and a separate delayed-reform 28.5% cut. It does not estimate payroll tax costs or the 2026 uniform 25.2% cut.