Social Security Series Part 3: Options for Reform
| Report Type |
Reports and Testimonies |
| Report Date |
July 31, 2024 |
| Release Date |
July 31, 2024 |
| Report No. |
GAO-24-107240 |
Summary:
What GAO Found
GAO focused on a range of Social Security reform options that are based on proposals introduced in Congress, identified in literature, or suggested by Social Security experts. Social Security reform proposals may combine several individual reform options into a comprehensive package. Many of the options discussed in this report would improve Social Security's finances by reducing the costs associated with benefit payments (e.g., directly reducing benefits or slowing the growth of benefits over time) or increasing program revenues (e.g., raising the payroll tax rate or increasing the amount of earnings subject to the tax). However, reform proposals may also include options that will have uncertain effects on program finances depending on the specific details of their implementation and other factors such as economic conditions (e.g., investing trust fund assets in private-sector securities). Finally, reform proposals may also include options that pursue goals unrelated to shoring up the program's finances, such as helping vulnerable beneficiaries (e.g., long-time, low-wage workers) by increasing the minimum benefit amount that the program pays.
Why GAO Did This Study
Social Security, the bedrock of the U.S. retirement system, faces serious financial challenges. Social Security's Old-Age and Survivors Insurance benefit program is projected to be unable to pay full scheduled benefits starting in 2033. At that point, if no action is taken to reform the program to shore up its finances, Social Security revenue is projected to be able to pay retirees just 79 percent of their scheduled benefits.
This is the last in a series of three GAO reports that outline (1) Social Security's financial challenges, (2) criteria for evaluating proposals for reforming Social Security to address its financial challenges, and (3) proposed options for reforming Social Security.
For more information, contact Tranchau (Kris) T. Nguyen at 202-512-7215 or nguyentt@gao.gov.
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