Icymi: Cassidy Warns of Looming Social Security Insolvency in WSJ

WASHINGTON –U.S. Senator Bill Cassidy, M.D. (R-LA) penned aletter to the editorin the Wall Street Journaloutlining his “Big Idea” to save Social Security from insolvency and calling on Congress to join him in addressing the threat before the program collapses. Cassidy’s letter follows the release of theSocial Security Trustees’ annual reportearlier this month which projects that Social Security will be depleted by 2033.
“Doing nothing isn’t an answer, yet Congress has become paralyzed by a false choice between raising taxes and cutting benefits. There’s another path, which a group of bipartisan senators and I have outlined in what we call the ‘Big Idea,’ a practical update to how Social Security is financed. The reform can save the program not merely for today’s seniors but also for our children and grandchildren,”wrote Dr. Cassidy.
“Social Security is one of the most important programs in America. If we want to keep our promise to workers and retirees, Congress must act. The longer we wait, the harder the solution becomes and, as of now, every beneficiary will face a 23% benefit cut in eight years. That’s not a distant iceberg. We can see it from the ship’s deck. Turn the tiller now,”concluded Dr. Cassidy.
Cassidy has championed his “Big Idea” to save, strengthen, and secure America’s retirement system. Heplayeda pivotal role in getting the Social Security Fairness Act signed into law on January 5, 2025. Cassidy successfully demanded a vote on the Social Security Fairness Act.
Read Cassidy’s letterhereor below.
How to Steer Clear of a Social Security Iceberg
Your editorial “The Social Security Iceberg Gets Closer” (June 20) rightly warns of the urgent need to address Social Security’s looming insolvency. Doing nothing isn’t an answer, yet Congress has become paralyzed by a false choice between raising taxes and cutting benefits.
There’s another path, which a group of bipartisan senators and I have outlined in what we call the “Big Idea,” a practical update to how Social Security is financed. The reform can save the program not merely for today’s seniors but also for our children and grandchildren.
We propose creating a separate investment fund that would be managed independently and invested in the broader economy. Our sovereign-wealth-style investment fund would start with $1.5 trillion and grow for 75 years, with all returns reinvested.
Based on historical performance, it would close about 70% of Social Security’s funding gap. The remaining third can be addressed with modest, phased-in changes without raising taxes or cutting benefits. Our “Big Idea” would protect current retirees, preserve benefits for future generations and ensure the program remains solvent for the next 75 years.
Recipients, to be sure, wouldn’t see their benefits tied to market fluctuations. The fund bears the investment risk, not beneficiaries. We already know the concept works. Congress created the National Railroad Retirement Investment Trust in 2001 on nearly identical principles. It has stayed solvent and met every obligation. Most state, private, and international pension systems follow the same logic.
Social Security is one of the most important programs in America. If we want to keep our promise to workers and retirees, Congress must act. The longer we wait, the harder the solution becomes and, as of now, every beneficiary will face a 23% benefit cut in eight years. That’s not a distant iceberg. We can see it from the ship’s deck. Turn the tiller now.
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