The Truth About Social Security

Social Security: The All-American Retirement Plan

Social Security is the backbone of retirement security for millions of Americans. It is often called the "All-American Retirement Plan" because nearly every working person contributes to it throughout their career and depends on it later in life. Established in 1935 as part of the New Deal, Social Security was designed to provide financial stability for retirees, disabled individuals, and survivors of deceased workers. It operates as a social insurance program where workers pay into the system through payroll taxes (FICA) and, in return, receive benefits in retirement or in times of need.

Americans Pay Into Social Security Their Whole Lives

Every paycheck, a portion of workers' earnings (6.2% from employees and another 6.2% from employers) goes toward Social Security. Self-employed individuals contribute the full 12.4%. This is not a handout—it’s money that workers have earned and contributed over decades, expecting to receive it back when they retire.

However, many Americans don’t have the financial literacy or income to invest in stocks, bonds, or retirement accounts. The reality is that most people simply cannot afford to set aside large sums for private retirement funds. According to surveys, about 78% of Americans live paycheck to paycheck, meaning they struggle to cover basic expenses, let alone save for retirement.

The Consequences of Eliminating Social Security

If Social Security were to be eliminated or significantly reduced, it would devastate millions of people—especially seniors, disabled individuals, and children who rely on survivor benefits. Here’s why:

Senior Poverty & Hunger: Many seniors depend on Social Security as their primary or only source of income. Without it, poverty rates among the elderly would skyrocket, leaving many unable to afford food, housing, and basic necessities.
High Prescription Drug Costs: Many seniors already struggle to afford medication. The loss of Social Security benefits would make it even harder to pay for life-saving prescriptions.
Children & Disabled Individuals at Risk: Social Security provides benefits not just to retirees but also to disabled individuals and children of deceased workers. Eliminating it would remove a crucial financial lifeline for these vulnerable groups.

Social Security Is Not an "Entitlement"—It’s Earned

Some argue that Social Security is a government "handout," but this is a myth. It is your money—earned through decades of work and contributions. Workers pay in, and later in life, they rightfully collect benefits. It is a self-funded system designed to ensure that people can retire with dignity and security, rather than facing financial ruin in old age.

Social Security Would Be Fully Solvent If the Wealthy Paid Their Fair Share

One common argument against Social Security is that it is "running out of money." However, the real issue is the cap on taxable income for Social Security contributions. In 2024, only the first $168,600 of a person’s income is subject to the Social Security tax. This means that a billionaire and a middle-class worker both pay the same amount in Social Security taxes after reaching that threshold.

If Congress lifted the cap on taxable income, requiring high earners to contribute the same percentage of their income as middle-class workers, Social Security would become fully solvent. It would pay for itself indefinitely, ensuring benefits for future generations without cuts.

Protecting Social Security Is Protecting the American People

Social Security is a promise to American workers that if they contribute throughout their lives, they will have a reliable income in retirement. Eliminating or weakening it would harm millions of seniors, children, and disabled individuals. The solution is not cuts—but fair contributions from the wealthiest Americans to ensure this critical program remains strong for generations to come.