The Wall Street Journal offers a perspective by Andrew G. Biggs, “New evidence on the phony ‘retirement crisis’”, p. A11 Tuesday. The CBO estimated retirement incomes based on promised Social Security benefits, and found most workers and spouses born in the 1960s and retiring before 2030 as doing reasonably well, if you include some savings and other retirement plans. The problem is that the Social Security administration is underfunded by 24% over the next 75 years with respect to promised benefits.
Removing all wage ceilings on the FICA tax would make up 41% of the shortfall. Raising the FICA tax alone would require a total tax (employee and employer) of 16.87% (right now it is 12.4%).
In the video above, Lindsey Graham (R-SC) wants current retiree to give up some of their COLA increases (based on means), but the COLA is much less than a few hundred dollars a month. He talks about Simpson-Bowles .