📋 AARP Poll: Social Security Support High, Confidence Lags (AARP Article)

[Winter2025VA]

FROM THE ARTICLE.

Americans across age groups and party lines view the monthly payments as critical to retirement security.

By Deirdre Shesgreen, AARP.

*** There are 5 comments on AARP website. Stop by to add yours. ***

Published July 22, 2025.

As it nears its 90th birthday, Social Security remains overwhelmingly popular among U.S. adults across all age groups and political affiliations, according to a new AARP survey.

Ninety-six percent of respondents characterized Social Security as an important program, and 74 percent rated it as one of the most important, up from 68 percent in 2020.

USE LINK BELOW TO READ THE ARTICLE.

https://www.aarp.org/social-security/ssa-trends-survey-90th-anniversary.html

[CarmenE673098]

The Trump Administration is gunning for our Social Security that we earned from our hard work. Here is the latest example 

https://www.nytimes.com/2025/07/30/business/bessent-trump-social-security.html

If Seniors of whatever political affiliation don't stop voting for the Party that is trying to force the "dying on the vine" of SS. Then we will be losing our full benefit much sooner than 2034. 

Trump say's the Gilded Age was the best time for America. That is a time when Seniors that could no longer work lived and died in poverty. 

FDR gave us a chance to live differently. Now these current Republicans in the Trump Administration and Congress believe that they have enough Seniors indoctrinated into a tribe that will support them. Even when they will suffer economically for doing so. Prove them wrong, or we will all suffer the consequences. 

[RickS467730]

I appreciate the concern about protecting Social Security—we all want the program to remain strong and dependable. But here’s the problem: everyone complains, yet no one offers real solutions. The only ideas we consistently hear are raising payroll taxes or delaying retirement—both of which disproportionately hurt lower-income workers and people who physically can’t keep working into their late 60s.

Groups like AARP often send out “call to action” emails, but rarely offer any serious proposals. And when someone finally does propose something bold—like partial privatization—it’s immediately shot down, without discussion. That kind of knee-jerk reaction is how we end up in gridlock while the trust fund ticks toward depletion.

Countries like Sweden modernized their system decades ago. They kept the public safety net but allowed individuals to invest a small portion in private accounts—growing their retirement savings over time. Even President Bush’s plan was modest: let workers divert just 2% into personal accounts. Not a dismantling—just diversification.

If we’re not even willing to consider proven, balanced reforms, we’re just kicking the can down the road. The real threat isn’t reform—it’s doing nothing.

[GailL1]

Wonder if anybody had every figured out IF one takes the same amount that they contributed to the SS system, at the same time intervals and invested in some stable market like Treasuries - what would be the outcome?

Now the same thing with perhaps a bitmore risk but not that much - like a balanced fund - where there are bonds and stocks mixed.  

OR what about something like the TSP - The Thrift Savings Program that is available to Federal Employees and uniformed military.

TSP.gov - About the Thrift Savings Plan  

The current health of the Social Security Trust Funds proves to me that politicians cannot manage it to efficiency.  Seems like they think it works with MORE benefits but less income.  It does not - and raising the cap alone isn’t gonna fix it.  

I wish that more seniors would wake up to the knowledge that the Social Security system was never ment to be a FULL retirement plan - It was ment to work WITH other savings.  

I think you have the wrong idea that something like the TSP could not be beneficial to many seniors even the lower income ones.  Because right now their Social Security retirement benefit formula is base on their own earnings and how long they worked and contributed and it is even progressive in that they get more for their own numbers but it is still not enough.  

So would it not be better to have at least some of their retirement savings in something that is decoupled from their earnings in the formula ?   

[Tonster521]

@gail1, I am providing some calculations with my assumptions to put the comparison on as level ground as I could. First, I am using a 35 year time period. Second, I am using 5.0% as an average return for any type of asset allocation. This is the discount rate. Third, I increased the initial SS contribution each year by 2.5% to reflect COLA or inflation. Fourth, the initial Covered Earnings were $50,000. So, the FICA tax (initial contribution) was $3,100. However, I reduced that amount to $2,650 because approximately .9% or .009 is used to fund the Disability Income (DI) provisions. My thoughts are folks will still need to fund the DI insurance coverage because (1) most folks do not buy DI insurance and (2) it would take a long time to accumulate enough money in a defined contribution approach; and, based on when a disability may start, one may not attain 35 years of Covered Earnings. So, I used 5.3% rather than 6.2% of the initial  $50,000 or $2,650. Fifth, I used a calculator instead of 35 individual calculations that would reflect year to year changes in the rates of return. This is important inasmuch as the compounding from year to year is a positive powerful accumulator rather than annual calculations that may vary and even be negative in any given year. Here are my results: First, $2,650 for 35 years at 5% and no COLA will accumulate to $239,348 ($92,750 contributions + $146,598 gains). Second, $2,650 with 2.5% COLA each year for 35 years at 5% will accumulate to $333,137 ($145,559 contributions + $187,578 gains). To reflect a more realistic working career, I used 40 years instead of just 35 years. Third, $2,650 for 40 years at 5% and no COLA will accumulate to $320,119 ($106,000 contributions + $214,119 gains). Fourth, $2,650 with 2.5% COLA each year for 40 years at 5% will accumulate to $461,622 ($178,617 contributions + $283,005 gains). Full disclosure: I used the future value of an annuity calculator at calculator soup.com since that calculator provides a growth input (COLA) to the contribution. Also, I used annual compounding rather than month to month compounding. Over time, that reduces the accumulated values somewhat, but not enough for your request. Using a baseball expression, I am in the ballpark and with the assumptions I selected, in the infield. Remember, all of the above lump sum amounts are based on using tax deferred accounts such as IRA, 401 K, etc. So, you do not need to be age 62 to start a withdrawal strategy (income) as you do with the SS program. Another factor to consider is that with the defined contribution approach, the money that you accumulate is yours, not the SS Trust Fund's money. So, when you die, any remaining balance is payable to your beneficiary(s), if none, payable to your estate. 

So, I have accumulated values based on just an employee's contribution. You can double the above amounts to reflect an employer's contribution. The key fact to learn from these calculations is that compounding over long periods of time even with modest rates of return can produce sizable accumulated amounts/values. The next step is to compare the accumulated values with the present value of ones SS Benefits. 

This is where it becomes critical to compare the time factor as close to equal as we can. For comparison purposes, I will use just 35 years of accumulated values and a PIA of $2,000/month payable at age 67 or $1,400/month ($16,800/year) payable at age 62. IOW, 35 years of accumulation and 35 years of Covered Earnings. The present value of $16,800/year for 20 years (average life expectancy) at a 3% discount rate is $257,440. If you reduce the discount rate to 2.5%, the present value is $268,445. Increasing the discount rate to 5%, the present value is $219,833. Of course, nobody knows their actual life expectancy until one dies. So, the above amounts will vary individually, but based on ALE which is a good indicator for the population as a whole, it is the mathematically sound approach to comparing the two amounts at age 62. In summary, the SS Benefit approach (payable at age 62) with the assumptions I used (includes COLA) has a present value of $257,440. The investment approach (35 years payable any age) with the assumptions I used (includes COLA) has a present value (the accumulated value) of $333,137. If you include an employer's contribution in addition to the employee's contribution, the investment approach will provide the best outcomes. This is why the TSP is so well liked. The Feds are providing matching contributions up to 5%. So, if an eligible federal employee contributes 5%, another 5% is contributed by the Federal Government which gets the money from the taxpayers, essentially, all of us. In the TSP, you can earn 0% on your contributions and have a 100% return. In the employee benefit field, this is called "Gold Plated". Where do you sign up for that deal?

[Winter2025VA]

Gail @GailL1 , what was "in place" BEFORE Social Security 90+ years ago?

Thanks,

Nicole!

[CarmenE673098]

Poverty for Seniors that were not wealthy.

Social Security gave us Baby Boomers a chance to pay our bills when many of us can no longer work. 

[GailL1]

@CarmenE673098 

You do know that some seniors did not start out as wealthy - Many of us cut corners and worked and worked in order to save for our retirement outside of the Social Security system.  In good times and in bad times, we did not faulted - we saved.   We maybe a long way from wealthy but we did create somewhat of a comfortable retirement;  making Social Security only one part of the whole when we retired, died or became disabled.

Like I said above, the way the Social Security benefit is computed is based on the amount we made during our working career and how long we worked.  A deficiency in either of those number creates a very low benefit.  It would be so much better if there was a secure way of investing at least some dollars in a program that was decoupled from this earnings and length of work time.  The TSP is one such way and is already a proven and safe way to invest for many federal employees and uniformed military.

TSP.gov - About the Thrift Savings Plan 

I have NEVER heard of the TSP having financial problems.  Has Anybody?

Now why would the Government do this for government employees and the military and not those working and contributing to the Social Security System.  

from the OPM.gov

Office of Personnel Management.gov - Thrift Savings Plan 

The Thrift Savings Plan (TSP) is a defined contribution retirement savings and investment plan that offers Federal employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, Federal employees and uniformed service members can save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.

What’s Not To Like???

[GailL1]

For that time when you need something to read and relax - 

SSA.gov - Pre-Social Security Period - Traditional Sources of Economic Security 

[Winter2025VA]

Thanks Gail @GailL1 , Nicole!

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@GailL1 wrote:

For that time when you need something to read and relax - 

SSA.gov - Pre-Social Security Period - Traditional Sources of Economic Security 

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