Gen Z Would Cut Current Retirees’ Social Security Before Raising Taxes; A Generational Reckoning Is Here
Social Security supports the majority of American workers, retirees, and families. Yet as the program barrels toward a funding shortfall, a stark generational divide is emerging.
Younger Americans; especially Gen Z, are increasingly unwilling to pay higher taxes to preserve benefits they’re not confident they’ll ever receive.
The 2034 Deadline Hanging Over Social Security
According to the 2025 Social Security trustees report, the program’s trust funds are expected to run dry by 2034.
If Congress does nothing, benefits would automatically be cut by roughly 20%. While lawmakers have never allowed Social Security to miss a payment, the clock is ticking on meaningful reform.
A Sharp Generational Divide on Who Should Sacrifice
A new Cato Institute poll of 2,000 respondents highlights how differently generations view the problem.
Nearly half of Gen Z respondents said they support reducing benefits for current and future retirees to fix Social Security’s finances.
Among Americans 65 and older, only 6% agreed.
Why Gen Z Is Reluctant to Pay More
More than one-third of adults under 30 aren’t confident Social Security will exist for them at retirement. Even more striking, 78% of Gen Z expect to receive less than what they’re owed. From their perspective, paying higher taxes now feels like pouring money into a system that won’t return the favor later.
Retirees See It Differently; and Want Protection
Older Americans overwhelmingly favor preserving current benefits, even if it means raising taxes on younger workers. In fact, 89% of adults 65 and older said retirees’ benefits should be protected at all costs—a stance that puts them directly at odds with younger generations.
Cutting Benefits vs. Raising Taxes: An Uncomfortable Choice
Social Security reform largely boils down to two options: increase taxes or reduce benefits. While a majority of respondents expressed general support for tax increases in theory, that support weakens dramatically when costs are spelled out in dollars rather than percentages.
The Moment Support for Tax Hikes Falls Apart
More than half of respondents said they’d accept raising payroll taxes from 12.4% to 16.05% to maintain benefits. But when framed as an extra $1,300 per year in taxes, support dropped to just 23%.
Experts say this disconnect shows how poorly Americans grasp the real cost of keeping Social Security solvent.
Gen Z’s Confusion About How Social Security Works
The poll also revealed a major knowledge gap among younger adults. Half of Gen Z respondents mistakenly believe their Social Security taxes are saved or invested for them personally.
In reality, today’s workers fund today’s retirees in a pay-as-you-go system; an arrangement many young workers don’t fully understand.
Where Americans Actually Agree on Reform
Despite the division, there is common ground.
About 71% of respondents across generations support creating an independent, nonpartisan commission to recommend fixes for Social Security. While only Congress can enact changes, such a commission could help break political gridlock.
Popular Alternatives to Across-the-Board Cuts
Participants also showed support for targeted reforms, including reducing benefits for higher earners, slowing annual benefit increases, freezing cost-of-living adjustments temporarily, and cutting other federal programs to preserve Social Security’s funding.
Social Security Is More Than Retirement and That Matters
Experts emphasize that many Americans view Social Security too narrowly. Beyond retirement checks, the program provides disability insurance, survivor benefits, and support for families who lose a wage earner.
In that sense, Social Security functions as a national social insurance program; not just a retirement plan.
The Bottom Line: A System Worth Saving, But Not Easily Fixed
Americans broadly agree that Social Security should be preserved. The disagreement lies in how and who should pay the price. Until younger generations trust the system will work for them too, the generational standoff over benefits and taxes is likely to grow louder as 2034 approaches.
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Ray Dalio Joins Michael Dell in Backing Trump Accounts for America’s Kids
President Trump’s signature “One Big Beautiful Bill” created tax-advantaged “Trump Accounts” to give American children an investment-powered jumpstart in life. President Trump’s new child investment program is quickly attracting some of the most powerful names in American finance. Hedge fund legend Ray Dalio and tech billionaire Michael Dell are now publicly backing Trump Accounts, pouring billions of private dollars into a system designed to give U.S. children an early stake in the stock market. What began as a $1,000 government seed investment for newborns is rapidly evolving into a public-private wealth-building engine, backed by Wall Street, Silicon Valley, and major philanthropies. Supporters say the surge of elite funding is a clear signal that Trump Accounts could become one of the most significant long-term savings initiatives ever created for American families.
Ray Dalio Joins Michael Dell in Backing Trump Accounts for America’s Kids
Remember These Christmas Movie Houses? Their Prices Today Will Shock You
Christmas movies are timeless favorites. From Home Alone to Miracle on 34th Street, these beloved films feature now-iconic homes where families gather and holiday magic unfolds. We’ve all imagined living in these houses; but could the average American afford to buy one today?
Remember These Christmas Movie Houses? Their Prices Today Will Shock You
New Social Security CBO Proposal Would Cut Benefits for Top 50% of Retirees
The Congressional Budget Office (CBO) has released a controversial new budget option that aims to shore up the federal government’s finances by targeting the retirement checks of high-income Americans. With the federal deficit hitting a staggering $1.8 trillion in Fiscal Year 2025 and the Social Security insolvency clock ticking down to 2033, this proposal offers a stark look at one potential “fix”: changing the math to pay the wealthy less.
New Social Security CBO Proposal Would Cut Benefits for Top 50% of Retirees
Social Security Crisis: New Plan Could Tax High Earners to Prevent 21% Benefit Cut
The United States is facing a fiscal double-whammy: a ballooning federal budget deficit and a Social Security trust fund racing toward depletion. With the Congressional Budget Office (CBO) releasing new numbers on potential fixes, one option is gaining significant attention: uncapping the Social Security payroll tax.
Social Security Crisis: New Plan Could Tax High Earners to Prevent 21% Benefit Cut
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John Dealbreuin came from a third world country to the US with only $1,000 not knowing anyone; guided by an immigrant dream. In 12 years, he achieved his retirement number.
He started Financial Freedom Countdown to help everyone think differently about their financial challenges and live their best lives. John resides in the San Francisco Bay Area enjoying nature trails and weight training.
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Personal Capital: This is a free tool John uses to track his net worth on a regular basis and as a retirement planner. It also alerts him wrt hidden fees and has a budget tracker included.
Platforms like Yieldstreet provide investment options in art, legal, real estate, structured notes, venture capital, etc. They also have fixed-income portfolios spread across multiple asset classes with a single investment with low minimums of $10,000.
