Let me synopsize my reactions to multiple opinion pieces I’ve read on the Social Security system like this. I agree that the Social Security needs reform. I think it is suffering from the failure of some of its operating assumptions.
Its operating assumptions, not generally recognized, are that the United States would have a rapidly rising population and real median wages. Those were pretty good assumptions in 1935—we had experienced both for nearly a century then. Now we have neither. Eliminating FICA max would alleviate its problems temporarily. IMO the only way to fix the Social Security system is to ameliorate the failure of its operating assumptions. We can’t accomplish that by importing large numbers of entry level workers especially if they remain entry level workers due to lack of skills, education, and/or training.
Privatization is not a solution. It is simply untrue that equities always rise in value. The same is true of all investments. Periods of high inflation can wipe out savings. We will need some form of government-based social security for a large percentage of the population.
I haven’t played with it much, but you can run different options here:
https://www.crfb.org/socialsecurityreformer/
Playing with the numbers there confirms my claim: the reforms needed include raising FICA max, raising SSRA, and changing the benefit formula. The numbers don’t add up otherwise.