Social Security Isn’t Broken — but These 4 Fixes Could Change Your Benefits

It’s no secret that Social Security is running low on funds. According to the Congressional Budget Office, if actions aren’t taken to fix the program, recipients won’t receive their full benefits starting in 2034. Hence, it’s a major issue that worries most Americans.

Learn More: I’m Retired and Regret Claiming Social Security at 70 — Here’s Why

Find Out: 4 Low-Risk Ways To Build Your Savings in 2025

A recent LendingTree survey showed 62% of respondents fear they won’t be able to retire without Social Security, while 59% worry the program won’t exist by the time they leave the workforce.

President Trump’s One Big Beautiful Bill is also causing concern. He campaigned on eliminating Social Security taxes, but instead, some Americans over 65 who are eligible will get a temporary tax break, which will expire in 2028. While it’s clear Trump broke his promise, it’s not time to panic just yet, according to experts.

There is time to repair Social Security so retirees receive 100% of their benefits. Here are four changes that could get the program back on track.

Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?

Increase FICA Rates

The Federal Insurance Contributions Act (FICA) is the federal payroll tax, and is deducted from employee’s paychecks. It’s the main way Social Security is funded and increasing the current FICA rate — which is 12.4% between employees and employers combined — could make an impact, according to Nicole E. Asher, CFP®, CPWA®, ChFC® Senior Vice President, Senior Wealth Management Advisor at Greenleaf Trust.

“When FICA originated in 1937, it was 2%. It has slowly increased over the years,” she explained. “In 1950, we saw the first increase to 3%. By 1960, we were at 6%. By 1970, it was 8.4%. And by 1980, at 10.10%. In 1990, it was raised to 12.4%, and has not been raised since.”

Read More: 8 Common Mistakes Retirees Make With Their Social Security Checks

Raise the Wage Cap

As of 2025, the wage cap for Social Security is $176,100, according to the Social Security Administration (SSA). This means wages above said amount are not taxed for Social Security.

“By gradually increasing or eliminating the cap, higher-income earners would contribute more, extending the life of the trust fund,” Michael Liner, head disability lawyer and founder of leading Social Security Disability firm Liner Legal, said.

But boosting the wage cap isn’t that straightforward.

“It sounds simple, but it breaks the long-standing principle that benefits are tied to what you pay in–because benefits are capped, but taxes wouldn’t be,” explained Chris Barnes, president at Escalent.

Diversify the Trust Fund’s Investment Strategy

The Social Security Trust Fund is where surplus payroll taxes are held to pay future benefits. Right now, it’s mainly invested in U.S. Treasury securities, which are safe, but offer low returns, according to the Center on Budget and Policy Priorities (CBPP).

However, “allowing a small portion to be invested in higher-yield assets, like index funds, could increase returns,” Liner explained. “Over time, stronger investment returns would reduce the need for drastic cuts or tax hikes.”

This change wouldn’t immediately affect current beneficiaries, but could secure the system for future generations.

Adjust the Full Retirement Age

Raising the retirement age from 67 to 68 or 69 for younger workersis another option.

“For people retiring early, benefits would be reduced slightly more, while those who wait would receive a higher monthly check,” Liner said. “However, any increase should be paired with protections for workers in physically demanding jobs, or those with chronic health issues — a key concern we see at Liner Legal.”

Increasing the retirement age hits people who work physical labor the hardest and “may not have the luxury of working longer,” Barnes said.

What This Means for Current Retirees

Current recipients of Social Security are not likely to see changes, but a reduction could happen if changes are not implemented.

“If you are like me and still working, it is likely that when we file, we will still receive benefits from Social Security. But they may be less than what we were expecting,” Asher said. “It could also mean that depending on what course of action is chosen to remedy the problem, we could face higher taxes, reduced after tax income, or a delay on when we can file for benefits.”

The situation is still uncertain, but Asher suggested speaking with a financial advisor to run an analysis and model your retirement with a reduction in Social Security benefits and or reduced after-tax income to prepare.

“What you might find is that, while it is not ideal to face reduced benefits, you are still able to live comfortably. If not, start planning now to address that shortfall,” she said.

Multiple changes need to happen to fix the problem, and Barnes believes we will see a “blend of the most talked-about options: a significant hike in the income cap, modest payroll tax increases (though this has the least political support), a gradual increase in the retirement age and a revised COLA formula.”

While these changes will make a notable impact, it won’t solve every problem; it will simply buy the program more time.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Social Security Isn’t Broke — but These 4 Fixes Could Change Your Benefits