Social Security's trust fund reserves are projected to deplete in 2032, prompting voter concern ahead of the 2026 midterm elections. An October AARP survey found that 83% of voters age 50 and older view Social Security as very or extremely important when deciding how to vote. A Peterson Foundation survey of voters in five battleground states found that 81% were more likely to support a Senate candidate with a plan to prevent automatic benefit cuts.
Without Congressional action, the program will only have enough revenue to pay 78% of scheduled benefits after 2032, according to the 2026 Trustees Report. This means an across-the-board reduction in benefits of about 22%.
Several proposals could address the funding gap. One widely discussed option would raise or eliminate the Social Security wage cap, currently $184,500 for 2026. Workers pay 6.2% Social Security tax on earnings up to that cap. Sens. Elizabeth Warren (D-Mass.) and Bernie Moreno (R-Ohio) are calling for eliminating the cap. The Peterson Foundation survey found that 72% of voters supported imposing an additional 1% payroll tax on earnings above the current cap. The Social Security Administration estimates that eliminating the cap could close about 58% of the 75-year funding shortfall if additional taxed earnings do not count toward future benefits, or about 45% if they do.
Congress could also increase the combined payroll tax rate, now 12.4%, split evenly between employees and employers. The SSA modeled a gradual increase of 0.1 percentage points annually beginning in 2032, reaching 14.4% by 2051. This would eventually raise the employee share from 6.2% to 7.2%. This change could close about 33% of the long-range funding shortfall. For a worker earning $50,000 annually, this would mean paying an additional $500 in Social Security taxes each year once fully phased in.
Other options include taxing investment income above certain thresholds or changing the annual cost-of-living adjustment to a fixed dollar amount rather than a percentage. The SSA estimates a 12.4% tax on net investment income for higher earners could close about 30% of the shortfall. A flat-rate COLA would mean smaller annual increases for most beneficiaries. An AARP analysis found that 80% of beneficiaries would receive a smaller adjustment under this approach.
Raising the full retirement age, currently 67, is another proposal. The SSA estimates that gradually raising it to 68 could close about 11% of the long-range funding shortfall; raising it to 69 could close about 32%. In the Peterson Foundation survey, 52% of voters opposed gradually increasing the retirement age for younger workers.