Gen Z sees Social Security as broken and wants fundamental change

Gen Z — people born between 1997 and 2012 — overwhelmingly believe Social Security will not exist in its current form by the time they retire. Surveys consistently show that roughly 70 to 80 percent of Gen Z respondents doubt they will receive benefits at all, or expect to receive significantly less than current retirees do. This skepticism shapes what they think the program should become.

Unlike older generations, Gen Z did not grow up with Social Security as a settled fact. They entered the workforce during or after the 2008 financial crisis, watched the program's trust fund depletion date move closer, and absorbed repeated warnings that the system faces a structural problem. That context drives their policy preferences: they tend to favor solutions that feel like a clean break from the current system rather than incremental fixes.

Key Takeaways

  • Gen Z expresses lower confidence in Social Security's future than any other generation, with most believing the program will be substantially different or unavailable by their retirement.
  • A significant portion of Gen Z supports raising or eliminating the payroll tax cap — the income ceiling above which Social Security taxes do not apply — rather than cutting benefits.
  • Gen Z shows more openness than older generations to means-testing benefits, where higher-income retirees receive reduced payments.
  • Roughly half of Gen Z respondents favor some form of private investment accounts or personal retirement accounts as part of Social Security reform.
  • Gen Z is more likely than older cohorts to support raising the full retirement age, viewing it as preferable to immediate benefit cuts.

Why Gen Z doubts Social Security will survive unchanged

The math behind Social Security's funding crisis is straightforward: the program collects payroll taxes from current workers and pays current retirees. When there are fewer workers per retiree, the system runs a deficit. Gen Z knows this. Surveys show that awareness of the trust fund depletion date — currently projected for 2034 — is higher among younger adults than among older ones.

Gen Z also came of age during a period of political gridlock on Social Security. They watched Congress fail to pass reform in 2005, 2011, and again in subsequent years. That repeated failure to act reinforced the message that the system is in trouble and that politicians cannot fix it. The result is a generation that does not expect a solution and is therefore more willing to consider radical alternatives.

Additionally, Gen Z has less faith in government institutions generally than previous generations. That skepticism extends to Social Security: if the government cannot manage the program as it exists, the thinking goes, perhaps the program itself needs to be replaced rather than repaired.

Gen Z preferences for raising revenue rather than cutting benefits

When asked how to close Social Security's funding gap, Gen Z shows a consistent preference: raise money rather than reduce payouts. Surveys by the Social Security Administration, Pew Research, and various polling firms show that majorities of Gen Z support increasing the payroll tax rate or raising the payroll tax cap — the income ceiling above which Social Security taxes do not apply.

The payroll tax cap is currently set at $168,600 for 2024, meaning that income above that level is not subject to Social Security tax. Removing or raising this cap would mean that high-income earners pay Social Security tax on all their income, just as lower-income workers do. Gen Z views this as fairer than cutting benefits that lower-income retirees depend on.

Gen Z is less enthusiastic about raising the payroll tax rate itself — currently 12.4 percent split between employer and employee — but still shows more support for a rate increase than for benefit cuts. This preference reflects both a fairness concern and a practical one: Gen Z expects to earn less in real terms than previous generations and is therefore more protective of the benefits they believe they have already paid for.

Support for means-testing and reduced benefits for higher earners

Means-testing — paying lower benefits to retirees with higher incomes or assets — is a reform that Gen Z supports at higher rates than older generations do. Roughly 40 to 50 percent of Gen Z respondents favor some form of means-testing, compared to 25 to 35 percent of adults over 65.

This preference likely reflects two things: Gen Z's skepticism that they will ever be wealthy enough to be affected by means-testing, and a sense that Social Security should function more like a safety net for lower-income retirees than as a universal program. Gen Z is more comfortable with the idea that Social Security is insurance against poverty in old age rather than a may provide return on payroll taxes paid.

However, Gen Z support for means-testing drops significantly when the question specifies that middle-class retirees would be affected. This suggests that Gen Z's support is conditional: they favor means-testing in theory, but worry about where the line would actually be drawn.

Interest in private accounts and personal investment options

Roughly 45 to 55 percent of Gen Z respondents express openness to some form of private investment account or personal retirement account as part of Social Security reform. This is substantially higher than support among older generations, though it remains a minority position even within Gen Z.

The appeal is straightforward: Gen Z has grown up with 401(k)s, IRAs, and brokerage accounts as normal parts of retirement planning. The idea that a portion of their Social Security tax could go into an account they control and invest feels more modern and more aligned with how they already think about retirement savings. Some proposals would allow workers to direct a portion of their payroll tax into personal accounts; others would create a parallel system where workers could opt out of traditional Social Security and into private accounts instead.

However, Gen Z support for private accounts is often soft. When surveys explain the risks — market volatility, the possibility of losing money, the need for financial literacy — support drops. Gen Z is attracted to the concept but less certain about the execution.

Willingness to raise the full retirement age

Gen Z is more willing than older generations to accept an increase in the full retirement age — the age at which a worker can claim full Social Security benefits without a reduction. Currently, the full retirement age is 67 for people born in 1960 or later, though it has been gradually increasing.

Surveys show that roughly 50 to 60 percent of Gen Z would accept raising the full retirement age further, compared to 35 to 45 percent of adults over 65. Gen Z's reasoning is partly practical: they expect to live longer than previous generations and are aware that life expectancy has increased since the full retirement age was last set. They also view it as preferable to immediate benefit cuts, since it allows people who continue working to receive full benefits.

However, Gen Z support for raising the retirement age is not universal, and it is significantly lower among Gen Z workers in physically demanding jobs. Construction workers, nurses, and others in occupations that are difficult to perform at older ages are more likely to oppose an increase.

Generational differences in reform preferences

Gen Z's preferences differ from those of older generations in several consistent ways. Older adults prioritize protecting current benefits and are skeptical of major structural changes. Gen Z, by contrast, assumes change is inevitable and is more willing to consider options that older generations view as radical.

Gen Z is also more likely to support solutions that affect higher-income earners — raising the payroll tax cap, means-testing benefits, or allowing higher earners to opt out of the system. Older generations are more protective of the universal nature of Social Security and more concerned about the precedent set by making the program means-tested.

These differences matter because they shape what reforms might actually be politically possible. A reform package that Gen Z would support might face resistance from older voters, and vice versa. Understanding what each generation wants is a first step toward understanding what compromises might work.

Frequently Asked Questions

Do most Gen Z people think Social Security will exist when they retire?

No. Surveys show that 70 to 80 percent of Gen Z believe Social Security will be substantially different or will not exist in its current form by the time they retire. However, most do not believe it will disappear entirely — they expect it to be reformed, reduced, or replaced with something else.

What do Gen Z people think is the fairest way to fix Social Security?

Gen Z most commonly supports raising the payroll tax cap so that high-income earners pay Social Security tax on all their income. This is seen as fairer than cutting benefits that lower-income retirees depend on. Raising the payroll tax rate itself is less popular but still supported by a plurality.

Do Gen Z people want to keep Social Security as it is?

No. Gen Z assumes Social Security will change and is more open to structural reforms than older generations are. Most Gen Z respondents believe change is necessary and are willing to consider options like means-testing, raising the retirement age, or creating private investment accounts.

Why is Gen Z more open to private accounts than older generations?

Gen Z has grown up with 401(k)s and brokerage accounts as normal parts of retirement planning. The idea of controlling and investing a portion of their Social Security tax appeals to them. However, support drops when surveys explain the risks, suggesting Gen Z likes the concept more than the details.

Would Gen Z support raising the retirement age?

Roughly 50 to 60 percent of Gen Z would accept raising the full retirement age, compared to 35 to 45 percent of older adults. Gen Z views it as preferable to immediate benefit cuts and notes that life expectancy has increased. However, support is lower among Gen Z workers in physically demanding occupations.