Social Security is easy to fix, at least on paper. Politically I know it’s difficult, but, it’s really straightforward as to how we can fix things.
In order to make Social Security solvent, with a perpetual balanced budget into the future, a combination of three factors have to be considered. Those factors are:
1. The retirement age could be raised incrementally for younger workers.
2. A modest tax increase could be enacted.
3. Benefits could be trimmed back.
All of these are political dynamite. But, if the powers that be want to make Social Security solvent, some combination of these three things has to happen.
Otherwise, we will continue into the future, and we will reach a point at which the system is completely broke.
The laws of economics and math cannot simply be ignored, any more than we can ignore the laws of physics. At some point, the system as we know it will collapse if it stays on the current trajectory.
I think the most likely way that it will be done is to get rid of the income cap on the social security tax and put a cap on the maximum allowable benefit under social security. I’m not saying it’s the best way, just the most likely to be politically possible.