Will Gen-Z ever see their Social Security? | OPINION PIECE BY Drew DiMeglio

In President Trump’s speech to the Joint Session of Congress, he rattled off a list of dead people in the Social Security database that could be receiving improper payments. While the statement that every single one of the millions of centenarians is receiving benefits is not veritable, the fact that there is no age-out system in the SSA database raises serious questions. In a 2024 report by the Social Security Administration’s Inspector General, $71.8 billion was paid out in improper payments over 7 years. While this was only 1% of the total payout, saving $10 billion a year is certainly a start for an administration that needs all the help it can get.

Just this summer, it was projected that Social Security will be depleted by 2034, causing program benefits to be cut by 17%. If this occurs, the number of Social Security beneficiaries living in poverty will increase by 50%. Despite the dire circumstances the administration finds itself in, it refused to follow recommendations provided by the Office of the Inspector General to cut waste and improper payments. Social Security solvency is one of the greatest economic challenges facing the United States in the next decade, and it’s simply a problem of population. There aren’t enough young people to support the large number of retirees, and the workers-to-beneficiaries ratio has now decreased by 0.6 in the last 20 years. 

The chances that I will see my Social Security benefits in 48 years are significantly lower than when I was born. Yet when faced with questions on cutting entitlements like Social Security or Medicare, Republican leaders place the blame for the entitlement drain on Gen-Z. The rhetoric is not only untrue, but it is not the direction the Republican Party should be going. Men under 30 shifted to the right by 13% from 2020 to 2024. This voter bloc presents a unique opportunity for republicans that they should capture. These are people who face a reality where they might not be able to own a house, or see the social security money they send to the government, all while they are blamed. That is the reason behind the conservative swing in 2024, and the right has an opportunity to provide them a better future than the progressive vision that has been offered. Social Security Solvency is something the entirety of Gen-Z is facing and already preparing for. It’s clear: Social Security is not solvent for Gen-Z.

That begs the question: How can Social Security be saved?

Cutting waste is an important first step, and is definitely a short-term solution, but in the end, it’s a band-aid on a bullet hole. DOGE won’t save Social Security, but it could buy it a few more years. To find a long-term solution, you have to look to the market.

The only way to save the waning entitlement program is by reimagining it. The best way to make social security solvent for younger generations is to allow them to opt into an investment program for their social security benefits. The idea has been floated for years, dating all the way back to President George W Bush’s plan, and it’s time we back our country's chief entitlement with our market.

This is an urgent but necessary solution to an even more pressing problem: let workers under 30 direct a slice of their Social Security contributions into regulated, diversified investment accounts. This is a program the federal government is no stranger to; federal employees are entitled to the Thrift Savings Plan, which mirrors a private 401 (k) plan. This plan is the model for implementing a wider Social Security investment system: it's optional, it's safe, and it's proven. For example, the C-Fund, which mirrors the S&P 500, has an annual return of nearly 12% a year. The TSP, as a proven federal investment fund, is also scalable, with nearly $845 billion in investments.

These returns, if implemented nationwide, could bring a brighter, more stable future for younger generations. The government would owe less in direct payments, and the chances of future tax hikes would be mitigated by positive returns shown in the TSP’s C-fund. Most importantly, it keeps Social Security solvent for another decade. According to a similar plan and modeling by CATO, if roughly 1 in 3 workers under 30 switch to this optional investment plan, we could buy 10 more years for Social Security. The plan for long-term solvency from there is simple: increase the number of workers in that plan, and increase the age limit to 40 or 50. We can fix Social Security; there is hope for my generation, we just have to be intentional about it.