Economists Found the Smartest Way to Save Social Security Before It Runs Out In 6 Years — But It’s the One That Sounds the Most Brutal on Paper

A Penn Wharton Budget Model study analyzed five proposals to fix Social Security's projected 2032 trust fund depletion. The option delivering the strongest long-term economic growth (6.1% GDP increase, 5.7% wage increase by 2060) relies entirely on benefit cuts without tax increases, making it politically difficult. In contrast, a tax-heavy proposal extends solvency to 2058 but yields only 2.4% GDP growth. The study highlights tradeoffs: a middle-income 60-year-old today loses $60,970 under deep benefit cuts versus $30,745 under tax increases, while younger generations fare better under the benefit-cut approach. One hybrid proposal (modest tax increase plus higher retirement age) leaves most current 60-year-olds better off but still disadvantages younger workers.