Changes to Social Security will likely be implemented over time and come into full effect for the next generation planning for retirement. We draw on Society of Actuaries’ modeling to highlight the impact of each proposal on Social Security’s overall solvency for context. This report provides data for current and future retirees, advisors, and the financial community to evaluate proposed changes to Social Security. Although we expect steps will be taken between now and 2033, there is no such thing as a free lunch: each of the proposals will come with a cost. Most Americans will either pay more when working and/or receive lower lifetime benefits. Kicking changes further down the road will simply increase the cost of fixes to the program.

Across the range of scenarios detailed in this paper, doing nothing will have the greatest cost in terms of dollars lost for future retirees. Changes to FRA, reducing COLAs and Spousal Benefits will all impact future beneficiaries. Direct or indirect taxes to address the funding shortfall will in dollar terms will be significantly lower than the value of lifetime benefits they are designed to maintain. We note one significant change detailed in the paper that will ensure benefits can be paid with no impact on mass affluent and average income Americans – removing the cap on contributions for affluent Americans.