Social Security Faces 2034 Crisis, Will Retirees Like Cyndi Greening Lose Benefits?

Millions of Americans depend on Social Security as their only or primary source of income in retirement. For people like 68-year-old Cyndi Greening from northern Wisconsin, the monthly benefit is not just financial support; it’s a lifeline. Greening, a retired professor, relies entirely on her Social Security check, just like her mother did before her. Her mother’s life story was a modest one, working in a shoe factory and surviving retirement on a small Social Security benefit, most of which went toward essentials like rent and medical bills. Greening now volunteers with a nonprofit focused on strengthening rural communities and has observed how many people in her area retire with little more than Social Security to rely on. Most don’t have access to workplace retirement plans and have never invested in the stock market.

However, the future of Social Security looks uncertain. According to the latest report by the Social Security trustees, the trust funds that support retirement, disability, and survivor benefits could run out by 2034. If that happens, beneficiaries would receive only about 81% of their expected benefits, with further cuts likely over time. Although Congress has always acted to preserve the program in the past, no clear solution has been agreed upon yet.

Concerns and Proposals for Reform

For retirees like Greening, the biggest fear is both inaction and the possibility of lawmakers taking the wrong kind of action. She supports requiring higher earners to contribute more, a stance reflected in the Social Security 2100 Act, reintroduced in 2023. The Act proposes that income above \$400,000 should also be taxed for Social Security. Currently, only earnings up to \$176,100 are subject to these taxes. Additionally, the bill calls for adjusting the cap regularly for inflation, ensuring the system captures more high-income contributions over time.

Another pressing issue is how benefits adjust to the rising cost of living. The annual COLA (Cost-of-Living Adjustment) is tied to the Consumer Price Index for Urban Wage Earners (CPI-W), which critics argue does not accurately reflect the expenses faced by older Americans—especially rising healthcare costs. Advocates like Greening argue that a better measure should be used to ensure benefits keep pace with seniors’ real expenses.

What Americans Think

Public support for strengthening Social Security is strong and bipartisan. A survey conducted by the National Academy of Social Insurance revealed broad agreement across the political spectrum:

• 74% of Republicans
• 88% of Democrats
• 82% of independents

Most respondents favored solutions such as eliminating the income cap above \$400,000, modestly raising the payroll tax rate, updating COLA to reflect seniors’ true costs, and even enhancing benefits. Importantly, people expressed a preference for higher taxes over benefit cuts, signaling a willingness to contribute more if it ensures program stability.

Potential Fixes on the Table

Experts and policymakers have floated several potential solutions to shore up Social Security’s trust funds. Each option carries trade-offs, but combined measures could delay or even prevent insolvency.

Proposed Change	Potential Impact
Raise Full Retirement Age to 69 by 2032	Reduce shortfall by about 25%
Apply payroll tax to income > \$400,000	Increase revenue significantly
Adjust COLA for seniors’ actual expenses	Ensure fairer benefit adjustments for retirees
Raise payroll tax rate (currently 12.4%)	Generate more revenue to stabilize trust funds

The American Academy of Actuaries even introduced the Social Security Challenge, an interactive tool allowing users to simulate how different combinations of changes would affect the program’s finances.

Legislative Proposals

Multiple bills have been introduced to tackle the looming shortfall, each taking a slightly different approach.

• Social Security 2100 Act: Tax income above \$400,000 and tie the income cap to inflation.
• Social Security Expansion Act: Boost annual benefits by \$2,400 and adjust COLA using an index specific to elderly expenses.
• Medicare and Social Security Fair Share Act: Eliminate the payroll tax cap entirely, requiring higher earners to pay more.

Other bills have focused on protecting beneficiaries from overpayment clawbacks, enhancing cybersecurity protections, and adjusting tax thresholds. While these do not address insolvency directly, they aim to make the system more efficient and fairer.

The Political Roadblock

Despite the urgency, Social Security reform remains one of the most politically sensitive issues in Washington. Lawmakers are hesitant to act decisively because every potential solution comes with controversy. Republicans often lean toward reducing benefits or raising the retirement age, while Democrats generally favor taxing higher incomes and expanding benefits.

This divide makes bipartisan compromise difficult. Discussions quickly become politically charged, leading to gridlock even as 2034 draws nearer. Experts argue that a balanced solution—combining tax reforms, benefit adjustments, and cost-of-living updates—will be necessary to save the program. Without action, the consequences for retirees could be severe.

The Urgency for Action

For retirees like Cyndi Greening and millions of others, Social Security is not just a supplement but a survival tool. Any reduction in benefits would directly impact their ability to cover essentials like housing, food, and medical care. As the trust fund deadline approaches, pressure is mounting on lawmakers to act before cuts become unavoidable.

The debate is no longer about whether Social Security needs reform but how quickly and comprehensively it can be achieved. History shows that Congress has always stepped in to preserve the program—but with political divisions sharper than ever, the outcome remains uncertain.

FAQs

Q1: When will Social Security trust funds run out?
According to the latest trustee report, the funds that support retirement, disability, and survivor benefits could be depleted by 2034, after which beneficiaries would receive only about 81% of scheduled payments.

Q2: What is the Social Security 2100 Act?
It’s a legislative proposal that would tax income above \$400,000 for Social Security and adjust the taxable cap for inflation, thereby strengthening the program’s finances.

Q3: How do Americans feel about raising taxes to protect Social Security?
Surveys show that most Americans—across political parties—support higher taxes on wealthy earners and even modest payroll tax increases, rather than facing benefit cuts.

Q4: What changes are being proposed to COLA?
Advocates want COLA to be tied to an index that better reflects seniors’ expenses, particularly rising healthcare costs, rather than the current CPI-W measure.

Q5: Why is Social Security reform politically difficult?
Because potential solutions—such as raising taxes or reducing benefits—are deeply controversial, and lawmakers fear political backlash from voters.