New bipartisan proposal could reshape Social Security—here’s what it means for your future
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With Social Security’s long-term stability back in the spotlight, lawmakers are once again debating how to secure the program millions of older Americans rely on every month.
Headlines have warned about looming shortfalls, and for those nearing or already in retirement, it’s a topic that hits close to home.
While talk of benefit cuts and insolvency may sound distant, new ideas are gaining traction—including one that just might change the way Social Security is funded for generations to come.
Two US senators—Republican Bill Cassidy of Louisiana and Democrat Tim Kaine of Virginia—have introduced a bold new plan they say could protect benefits without cutting checks or raising payroll taxes right away.
“There is a nationwide appetite to implement a bipartisan, commonsense plan like ours,” they wrote in a recent op-ed.
Social Security is funded primarily by payroll taxes collected from workers and employers.
For years, the system brought in more than it paid out, creating a reserve known as the Trust Fund.
But with people living longer, birth rates declining, and more Baby Boomers retiring, that reserve is shrinking fast.
According to the latest report from the Social Security Administration, the Trust Fund could be depleted as early as 2033.
If that happens, Social Security won’t disappear—but it would only be able to pay out what it collects in taxes each year.
Without action, this could lead to an across-the-board benefits cut of about 20–25%.
A recent survey from DepositAccounts found that 59% of non-retired Americans worry the program won’t be there when they retire.
The bipartisan plan from Senators Cassidy and Kaine centers on creating a new investment fund to support Social Security.
Instead of relying solely on Treasury bonds (which currently make up the Trust Fund’s holdings), the new fund would be allowed to invest in a broader range of assets—like stocks and private-sector bonds—similar to how many pension funds operate.
Here’s how the plan would work:
Cassidy and Kaine emphasize that current beneficiaries would see no changes to their benefits, and they propose embedding safeguards like annual audits to ensure the fund is properly managed.
Like any plan to reform Social Security, this one has drawn both support and skepticism.
Supporters point to:
Critics raise concerns about:
This isn’t the first time lawmakers and experts have suggested alternatives to the current system.
BlackRock CEO Larry Fink recently floated the idea of allowing Americans to invest a portion of their Social Security taxes in private accounts—similar to Australia’s superannuation model.
There’s also precedent within US federal programs.
The National Railroad Retirement Investment Trust (NRRIT) already uses a diversified investment strategy.
In 2024, it reported a return of 18.9%—below its benchmark, but still significantly higher than Treasury bond yields.
Cassidy and Kaine cite this as proof that long-term investment strategies can be effective in the public sector.
Still, some experts question whether the timing is right.
Devin Carroll, a financial advisor and founder of Social Security Intelligence, told Newsweek, “The main problem now is we don’t really have the money to invest. We could rebuild it by raising taxes or borrowing, but that’s a heavy lift politically. Honestly, this kind of move would’ve made more sense a decade or two ago.”
He added, “It’s a smart idea on paper. Stocks usually earn more than government bonds, so adding equities to the mix could ease the need for big tax hikes or cutting benefits. But there’s a trade-off. More return means more risk, and it raises questions about how involved the government might get in the private markets.”
If you're already collecting Social Security or plan to begin soon, the Cassidy-Kaine proposal promises no changes to your monthly benefits.
The goal is to stabilize the system without impacting those who are currently retired.
For younger workers and future retirees, the long-term benefits depend on how the plan performs—and whether it gains enough support in Congress to become law.
So far, the proposal has not been formally introduced, but the conversation is gaining momentum.
While lawmakers debate next steps, here are a few ways to stay informed and prepared:
At The GrayVine, we know how much Americans depend on Social Security—now and in the years ahead.
This new proposal has sparked hope, hesitation, and a healthy dose of debate.
Read next: Tired of waiting on hold for Social Security? Here’s what’s really going on
Would you support investing Social Security funds in the market? Do you think the Cassidy-Kaine plan is a step in the right direction—or do you have another idea for strengthening the program?
Whatever your thoughts, we’d love to hear them. Share your experience and help shape the conversation around one of America’s most important safety nets.
Headlines have warned about looming shortfalls, and for those nearing or already in retirement, it’s a topic that hits close to home.
While talk of benefit cuts and insolvency may sound distant, new ideas are gaining traction—including one that just might change the way Social Security is funded for generations to come.
Two US senators—Republican Bill Cassidy of Louisiana and Democrat Tim Kaine of Virginia—have introduced a bold new plan they say could protect benefits without cutting checks or raising payroll taxes right away.
“There is a nationwide appetite to implement a bipartisan, commonsense plan like ours,” they wrote in a recent op-ed.
A new proposal aims to secure Social Security’s future, but opinions are divided on how best to protect the program. Image Source: YouTube / CBS News.
Why is Social Security under pressure?
Social Security is funded primarily by payroll taxes collected from workers and employers.
For years, the system brought in more than it paid out, creating a reserve known as the Trust Fund.
But with people living longer, birth rates declining, and more Baby Boomers retiring, that reserve is shrinking fast.
According to the latest report from the Social Security Administration, the Trust Fund could be depleted as early as 2033.
If that happens, Social Security won’t disappear—but it would only be able to pay out what it collects in taxes each year.
Without action, this could lead to an across-the-board benefits cut of about 20–25%.
A recent survey from DepositAccounts found that 59% of non-retired Americans worry the program won’t be there when they retire.
Also read: The $5,108 Social Security check: who qualifies and how?
What are Cassidy and Kaine proposing?
The bipartisan plan from Senators Cassidy and Kaine centers on creating a new investment fund to support Social Security.
Instead of relying solely on Treasury bonds (which currently make up the Trust Fund’s holdings), the new fund would be allowed to invest in a broader range of assets—like stocks and private-sector bonds—similar to how many pension funds operate.
Here’s how the plan would work:
- The federal government would make an upfront investment of $1.5 trillion.
- The fund would be managed for 75 years, with the goal of earning higher returns.
- Social Security benefits would continue as usual during that time, funded by payroll taxes and Treasury support.
- After 75 years, the new fund would begin reimbursing the Treasury and helping to cover future benefit payments.
Cassidy and Kaine emphasize that current beneficiaries would see no changes to their benefits, and they propose embedding safeguards like annual audits to ensure the fund is properly managed.
Also read: Could your Social Security benefits increase? Here’s the latest from Congress
The potential benefits—and risks
Like any plan to reform Social Security, this one has drawn both support and skepticism.
Supporters point to:
- Higher returns: Historically, diversified portfolios outperform Treasury bonds over long periods. More earnings could help close the funding gap.
- No immediate benefit cuts: Retirees and near-retirees wouldn’t see any reduction in their monthly checks.
- Bipartisan momentum: With support from both parties, the proposal may have a better chance of moving forward.
Critics raise concerns about:
- Market volatility: Investing in stocks introduces risk. A downturn could impact the fund’s performance.
- Federal borrowing: The initial $1.5 trillion would likely come from borrowing, which some say could raise interest rates or slow economic growth.
- Doesn’t address long-term structure: Gopi Shah Goda, a fellow at the Brookings Institution, noted that the plan doesn't fix deeper issues like benefit formulas or longer lifespans. She suggested targeting high-income retirees or adjusting how benefits are calculated to improve fairness and sustainability.
Also read: Could immigration policy changes affect your Social Security benefits sooner than expected?
How does it compare to other ideas?
This isn’t the first time lawmakers and experts have suggested alternatives to the current system.
BlackRock CEO Larry Fink recently floated the idea of allowing Americans to invest a portion of their Social Security taxes in private accounts—similar to Australia’s superannuation model.
There’s also precedent within US federal programs.
The National Railroad Retirement Investment Trust (NRRIT) already uses a diversified investment strategy.
In 2024, it reported a return of 18.9%—below its benchmark, but still significantly higher than Treasury bond yields.
Cassidy and Kaine cite this as proof that long-term investment strategies can be effective in the public sector.
Still, some experts question whether the timing is right.
Devin Carroll, a financial advisor and founder of Social Security Intelligence, told Newsweek, “The main problem now is we don’t really have the money to invest. We could rebuild it by raising taxes or borrowing, but that’s a heavy lift politically. Honestly, this kind of move would’ve made more sense a decade or two ago.”
He added, “It’s a smart idea on paper. Stocks usually earn more than government bonds, so adding equities to the mix could ease the need for big tax hikes or cutting benefits. But there’s a trade-off. More return means more risk, and it raises questions about how involved the government might get in the private markets.”
Senators Bill Cassidy and Tim Kaine have introduced a bipartisan proposal aimed at strengthening Social Security for future generations. Image Source: YouTube /
New York Post and Global News.
New York Post and Global News.
Also read: Social Security goes digital: What to know about the new online SSN feature
What does it mean for current and future retirees?
If you're already collecting Social Security or plan to begin soon, the Cassidy-Kaine proposal promises no changes to your monthly benefits.
The goal is to stabilize the system without impacting those who are currently retired.
For younger workers and future retirees, the long-term benefits depend on how the plan performs—and whether it gains enough support in Congress to become law.
So far, the proposal has not been formally introduced, but the conversation is gaining momentum.
Also read: Social Security updates payment system: What retirees should know
What you can do in the meantime
While lawmakers debate next steps, here are a few ways to stay informed and prepared:
- Stay informed — Follow updates on Social Security reform efforts and read from a variety of sources.
- Review your retirement plans — Talk to a financial advisor if needed to ensure you're maximizing your benefits.
- Contact your representatives — Let them know how you feel about proposals like this one. Your voice matters, especially on issues that affect millions of older Americans.
At The GrayVine, we know how much Americans depend on Social Security—now and in the years ahead.
This new proposal has sparked hope, hesitation, and a healthy dose of debate.
Read next: Tired of waiting on hold for Social Security? Here’s what’s really going on
Would you support investing Social Security funds in the market? Do you think the Cassidy-Kaine plan is a step in the right direction—or do you have another idea for strengthening the program?
Whatever your thoughts, we’d love to hear them. Share your experience and help shape the conversation around one of America’s most important safety nets.
