Trump admin signals Congress will need to consider all options as insolvency looms in 2034
Facing warnings that Social Security could become insolvent by 2034, administration officials say the program’s future depends on reforms from Congress, with all policy options expected to be debated.
"I think everything’s being considered, will be considered," Social Security Administration Commissioner Frank Bisignano said on "Mornings with Maria" Thursday. He was responding to host Maria Bartiromo asking whether he "would consider raising the retirement age."
Following the segment, Bisignano issued a statement to Fox News Digital clarifying the administration’s stance.
"Let me be clear: President Trump and I will always protect Social Security. That's why we have made many vital reforms, such as cutting waste, fraud, and abuse from the program, to ensure the solvency of Social Security for future generations of Americans. Raising the retirement age is not under consideration at this time by the Administration."
"Remember, most people told you and me Social Security wasn't going to be around," he said. "And so the generations that are coming in will probably have a different set of rules than we had," he added, responding to Bartiromo’s question about whether he is considering the fact that younger generations may face different retirement expectations.
Social Security's two main trust funds are projected to reach insolvency on a combined basis in the first quarter of 2034, in part because the ratio of workers to retirees has declined over time from 16.5 workers per retiree in 1950, to 3.3 in 1985, and about 2.8 in 2013, according to Social Security Administration data.
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Once the trust funds are tapped out, the program would face an automatic benefit cut by law to match incoming payroll tax receipts unless Congress reforms the program. Insolvency would leave beneficiaries facing an estimated 24% benefit cut on average, according to an analysis by the nonpartisan Committee for a Responsible Federal Budget.
Social Security's trustees estimated that Congress would need to raise payroll taxes by 3.65 percentage points — an increase from 12.4% to 16.05% — on a permanent basis to close the program's 75-year funding shortfall.
When asked by Bartiromo if raising the retirement age would "save a lot of money" and help policymakers, Bisignano responded that "there's a whole host of items out there that can be beneficial to get to the answer."
"It needs, really, to be the trustees, which are the four of us — myself, the Treasury secretary, the labor secretary, the HHS secretary — the White House, which is completely committed to protect and preserve Social Security, and then Congress," he explained. "And that's where the real work will happen. And that'll take a while, but we have plenty of time."
A recent retirement study from Allianz Life found that retirement confidence is tightening, as only 28% of Americans feel certain in their ability to financially support their life goals, down 13 points since 2020.
Concerns about market volatility and the future of Social Security have also surged among Gen X, and, more significantly, 70% of respondents said they worry more about running out of money in retirement than they do about dying.
Besides raising the retirement age, Bisignano said there’s also talk about lifting the contribution cap.
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"That number will continue to increase also, of where the max is, and that's another thing that people put in the equation to think about," Bisignano said. "Eight years is a long time away. We're less than 200 days into this administration, and we need Congress to partner with us."
An SSA spokesperson further stressed the administration’s commitment, telling Fox News Digital:
"The Trust Fund trustees, Congress, and other stakeholders all play a role in ensuring that Social Security benefits will continue for generations to come. As a trustee, Commissioner Bisignano is committed to ensuring the long-term financial health of the trust funds, in line with President Trump's pledge to protect and preserve Social Security. The latest analysis of the trust fund fails to take into account the efficiencies being spearheaded by Commissioner Bisignano and the expected economic growth due to President Trump's One Big Beautiful Bill."
"The plan was [to] get this to be a great service provider for the American public, and then, with Ways and Means and with [the] Senate, come together with a plan," Bisignano told Bartiromo.
FOX Business’ Eric Revell contributed to this report.
