AARP Report Proposes Revenue Fixes for Social Security

The AARP Public Policy Institute released a report stating that Social Security trust funds are projected to be depleted by the third quarter of 2034. Without congressional action, the program would only be able to pay 83% of scheduled benefits after that date. The research indicates that the program could have maintained full benefits until 2059 if taxable payroll had kept pace with the U.S. gross domestic product.

The report attributes the funding shortfall to a decline in taxable payroll as a share of GDP, which fell from 41% in 1983 to 34% in 2025. This shift is driven by rising income inequality, automation, and a transition toward business and investment income. To close the gap, the institute suggests rebuilding revenue by taxing investment income from pass-through entities or raising the payroll tax cap for high-income earners.

Institute leadership opposes cutting monthly benefit checks to solve the crisis. Richard Johnson, vice president of financial security, noted that the economy has grown more productive while the program's revenue system has remained stagnant. Jenn Jones, vice president of financial security and livable communities, emphasized that millions of Americans cannot afford any loss in benefits.