Social Security has long been considered a cornerstone of retirement security in the United States. However, concerns about the program’s financial future are growing as demographic changes and policy decisions place increasing pressure on its funding. One longtime Social Security expert says the system can still be saved—but it will require political action.
Social Security Expert Warns Program Faces Funding Pressure
Martha Shedden, a 70-year-old civil engineer turned Social Security expert, has spent more than 15 years studying the complex rules governing the federal retirement program.
Shedden is now the president and cofounder of the National Association of Registered Social Security Analysts (NARSSA), one of the largest Social Security advisory organizations in the United States.
According to Shedden, recent fiscal policies have added pressure to the program’s long-term finances.
She said legislation known as the “One Big Beautiful Bill Act” did little to improve Social Security’s outlook and could accelerate financial challenges.
Shrinking Worker-to-Beneficiary Ratio
One of the biggest challenges facing Social Security is the declining ratio of workers paying into the system compared to the number of people receiving benefits.
Historically:
| Period | Workers per Beneficiary |
|---|---|
| Mid-20th century | 10 or more |
| Today | About 2–3 |
This shift has placed strain on the program’s trust funds, which rely heavily on payroll taxes from current workers.
Trust Fund Depletion Could Arrive Earlier
Current projections suggest that Social Security’s trust funds may be depleted by 2032, earlier than previously estimated.
If that happens, incoming revenue from:
- Payroll taxes
- Taxes on Social Security benefits
- Interest from the trust funds
would only cover a portion of promised benefits, rather than the full amount.
However, Shedden believes the program is still salvageable.
“I’m an optimist,” she said, explaining that Social Security’s complicated rules provide many opportunities for policy adjustments.
Why Ending Taxes on Benefits Could Be Risky
Shedden also warned about proposals to eliminate federal taxes on Social Security benefits.
While such proposals may appear appealing to retirees, she said those taxes play a crucial role in funding the program.
According to her analysis, removing those taxes would reduce revenue flowing into the trust funds and could lead to larger benefit cuts in the future.
Common Misunderstandings About Social Security
Shedden says a major issue with Social Security is widespread misunderstanding of how the system works.
Many Americans think of Social Security simply as a retirement payment, but she explains it functions more like a national insurance system.
The program provides several types of protection:
- Retirement income
- Disability insurance
- Survivor benefits for families
- Medicare-related health coverage
For many households, the lifetime value of Social Security benefits can reach hundreds of thousands of dollars—and sometimes more than $1 million for couples or high earners.
Potential Solutions to Strengthen Social Security
Experts have proposed several policy changes that could extend the program’s solvency.
A 2025 study titled “Social Security at 90” suggested several possible solutions.
These include:
| Policy Option | Explanation |
|---|---|
| Raise the taxable earnings cap | Currently only about 80% of wages are subject to payroll taxes |
| Tax earnings above $400,000 | High earners would contribute more |
| Eliminate the earnings cap entirely | Similar to the Medicare payroll tax |
| Increase payroll tax slightly | Example: from 6.2% to 7.2% |
One proposal that receives less support from many experts is raising the full retirement age, which critics argue effectively reduces benefits.
Need for Bipartisan Cooperation
Historically, major Social Security reforms have required cooperation between political parties.
One well-known example occurred in 1983, when President Ronald Reagan and House Speaker Tip O’Neill worked together to create a bipartisan commission that helped stabilize the program.
Shedden believes a similar approach may eventually be necessary again.
However, she acknowledged that current political divisions make such cooperation difficult.
Why Social Security Remains Important
Despite financial concerns, Shedden emphasizes that Social Security remains a critical financial asset for millions of Americans.
She describes it as a guaranteed lifetime income system that adjusts for inflation and provides important safety-net protections.
The program has been operating for 90 years and remains the primary source of retirement income for many Americans.
FAQ
Who is Martha Shedden?
Martha Shedden is the president and cofounder of the National Association of Registered Social Security Analysts and an expert on Social Security policy and retirement planning.
Why is Social Security facing financial pressure?
The program faces challenges because fewer workers are paying payroll taxes while more retirees are receiving benefits.
When could Social Security trust funds run out?
Current projections suggest the trust funds could be depleted around 2032 if no changes are made.
Would Social Security disappear if the trust funds run out?
No. The program would still collect payroll taxes, but those funds would likely cover only part of scheduled benefits.
What changes could help strengthen Social Security?
Possible solutions include increasing payroll taxes, raising the income cap subject to Social Security taxes, or applying taxes to higher earnings.
