Minor adjustments cannot fix a pay-as-you-go system strained by demographic reality. Restoring solvency demands structural changes that emphasize ownership.

On February 11, the Congressional Budget Office (CBO) published its annual Budget and Economic Outlook report, covering 2026 to 2036. Among the projections, the report found that Social Security’s Old-Age and Survivors Insurance will be unable to pay full benefits in 2032 (a year earlier than projected in last year’s report). This is due to the higher projected cost-of-living adjustments and lower projected revenues. To put that in perspective, Social Security will be unable to pay full benefits before the program turns 100.

Social Security is in desperate need of reform, but doing so is easier said than done. Perhaps the worst cultural consequence of Social Security is that this unsustainable program is pitting generations of Americans against one another. The young support benefit cuts while the old support higher payroll taxes. Successful reform means balancing the interests between these generational divides to prevent political backlashes, which may jeopardize future reforms.

What Social Security Is and Is NotWhat Social Security Is and Is Not

Possible ReformsPossible Reforms

Institutional Reform — or Generational ReckoningInstitutional Reform — or Generational Reckoning

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