The Uncertain Future of Social Security & What it Means for Young People
- On the Money Magazine
- Nov 18, 2025
- 2 min read
Updated: Dec 2, 2025
Timothy Kempton, Junior, Latin School of Chicago, Spring 2025
Social security is a benefit that all working citizens may obtain. Every time Americans receive paychecks, 6.2% of their earnings up to $176,100 are put towards Social Security. It is possible for employers to match this meaning that 12.4% of salaries go directly to the program (Connett, 2024).
But what exactly is Social Security? It was created during the New Deal in 1935 to provide income security for retirees. Workers contribute through payroll taxes and retirees receive benefits proportional to what they paid in. The money is invested in fixed income securities to help it grow over time, and it is especially helpful to those who struggle to save during their working years.
For decades, the system worked well, but recently, concerns have grown about its long term sustainability. From 2020 to 2023, the social security trust fund lost nearly 120 billion dollars worth of value, meaning that the benefits it paid out were higher than what it received in payments (SSA.gov, 2024). This is likely due to rising average age. In 2008, people 65+ accounted for just under 13% of the population, while in 2023, only 15 years later, they make up nearly 18%---and growing. This, in effect, means that there are more people drawing from the Social Security pool, with less people to contribute to it (KFF.org, 2023).
This poses issues for young people in the United States because they are unsure if the money they put forward will be there when they retire. Some experts have suggested that instead of just investing in fixed income, the Social Security trust should have some exposure to equities, which historically have a higher long term return that comes with the added risk. Michael Cardoza, Financial Paraplanner Qualified Professional, suggests that people should not take social security for granted, and “take [their] retirement into their own hands” because no one “can say for certain where the program will be” when it comes time to retire.
A junior in high school, Millan Bhandari, is concerned about the future and having a stable retirement when it comes his time to retire. He expresses, “for most of my future career, I will support the retirees, but will anyone be there for me when it is my time?” This is a common concern that many Americans face.
Interviewees:
Michael Cardoza, FPQP
Millan Bhandari.
Sources:
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