Social Security's funding deadline is getting closer. 4 policy changes could prevent retirement benefit cuts.

Key Points:

• Lawmakers face a looming shortfall in Social Security's retirement trust fund reserves, risking a 22% benefit cut in 2032 unless Congress acts, with bipartisan agreement on the need for a solution but disagreement on the approach.
• Proposals to address the funding gap include raising payroll taxes on higher earners, such as Senator Bernie Sanders' plan to partially lift the payroll tax cap for incomes above $250,000, potentially extending solvency for 75 years.
• Another tax-related proposal, supported by Senators Elizabeth Warren and Bernie Moreno, calls for eliminating the payroll tax cap entirely, which could generate trillions in revenue but faces criticism for potentially discouraging work and investment.
• Some Republicans advocate increasing the full retirement age beyond 67 to slow benefit growth, arguing it reflects longer life expectancies, though critics warn this would effectively cut benefits and disproportionately affect lower-income and physically demanding workers.
• A government-backed investment fund proposed by Senators Bill Cassidy and Tim Kaine would borrow $1.5 trillion to invest in stocks and assets aiming to cover 60-65% of the funding gap, but experts question its reliance on federal borrowing and long-term investment returns.