Social Security could run out of money by 2032, forcing leaders to consider difficult choices. Commissioner Frank Bisignano said “everything’s being considered” as the number of retirees in the U.S. grows. While this shift in population may cause long-term financial challenges, it is temporarily helping keep unemployment near 4.3% despite slow job growth.
Like many other countries, the U.S. faces a hard question: How will it pay for the care of an aging population? Many solutions will be unpopular, but officials know action is needed before a crisis arrives.
The timeline in the U.S. is only seven years. The Committee for a Responsible Federal Budget predicts that Social Security’s retirement trust funds will be insolvent by the end of 2032.
This means Trump’s Social Security Administration Commissioner, Frank Bisignano, is looking ahead to plan for the next generation of retirees.
When asked whether raising the retirement age could be part of the solution, Bisignano told Fox Business yesterday: “I think everything’s being considered, will be considered.”
He added: “Remember, most people told you and I Social Security wasn’t going to be around, and it’s going to be around. So the generations that are coming in will probably have a different set of rules than we had.”
The number of Americans facing this new reality is large. The Congressional Budget Office (CBO) estimates the Social Security population—those who pay into and receive benefits—will grow from 342 million in 2024 to 383 million by 2054.
The balance between workers paying into the system and people receiving benefits won’t easily fix itself. The CBO predicts that after 2040, population growth will mostly come from immigration because of low birth rates.
Bisignano told Fox that raising the retirement age—currently benefits start at 62 and full retirement age is 66 or 67—is just one option. He said there are “a whole host of items out there that can be hugely beneficial to get to the answer.”
Later, he clarified on social media platform X that raising the retirement age is not being considered. He wrote: “Let me be clear: President Trump and I will always protect, and never cut, 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. Raising the retirement age is not under consideration.”
Another factor is the earnings cap, currently $175,000, where benefits are reduced. Bisignano said this limit will continue to rise, and it is “another thing to put in the equation to think about.”
“President Trump will always protect and strengthen Social Security,” Liz Huston of the White House told Fortune.
Retirement Rates Help Keep Employment Steady
One benefit of an aging population is that more retirements are helping keep unemployment lower.
Even though the U.S. added just 22,000 jobs last month and labor market data was revised downward, the unemployment rate has stayed around 4.3% in recent months.
Part of the reason is that people retiring are leaving the job market, which reduces competition for jobs.
As David Doyle, Macquarie’s head of economics, told Fortune: “There’s been a surge in retirements this year. The first baby boomers, born in 1946, are now turning 80. The youngest baby boomers, born in 1964, are in their sixties now.
“You now have this huge generation that is going to slow labor force growth.”
At the same time, this slowdown helps keep unemployment rates from rising because there are fewer workers competing for jobs than the demand requires.
