Social Security Faces Funding Shortfall, Could Pay Full Benefits Until 2059 Under AARP Scenario
An AARP report indicates that Social Security could have maintained full scheduled benefits until 2059 if the taxable payroll had remained at its 1983 share of the U.S. economy. The report, released by the AARP Public Policy Institute, highlights how shifts in income patterns have negatively impacted the program's finances. Social Security is primarily funded by payroll taxes, with workers and employers each contributing 6.2% of wages up to an annual taxable limit, which is $184,500 in 2026. The share of gross domestic product (GDP) represented by wages subject to Social Security payroll taxes decreased from 41% in 1983 to 34% in 2025. This decline is partly attributed to rising business profits, investment income, and wages exceeding the taxable earnings cap. In 2025, Social Security's costs surpassed its revenue by $160 billion, or 11%. Prime Capital Financial Chairman and Managing Partner Scott Colangelo, appearing on Fox Business's 'Varney & Co.', discussed these changes, noting a 3.6% cost-of-living a...
