How would you fix Social Security?

This a challenging question because it depends on what you believe Social Security is meant to do in this day and age. Many decades ago social security was the only program that helped many of those in the lower income brackets survive once they stopped working. It also supplemented a persons pension. The advent of the 401K programs as supposed to alleviate the strain of contributing and maintaining pensions on corporations by allowing workers to fund their retirement. Of course the other part of this program was continual pay raises each year to help workers invest and save what would be the equivalent of a pension. Unfortunately those pay raises never occurred in the manner required and many today will need to rely on social security to ensure ends meet as they retire.

My solution would be as follows:
1. Currently social security contributions top out at $127,200 in 2017. Above that amount the percentage of income that is taken for social security decreases. I would remove this limit. If you make $12 million then you should pay 6.2% on the $12 million.
2. I would also increase the age at which you can start taking withdrawals except if you can prove you need the money.
3. I would have initial payouts smaller and increase as you get older to replace investment income.
4. I would setup the social security in a similar fashion as TSP in that there are funds to invest the contributions in. For instance each year group of workers would be invested in a target date fund and have a target date for when the can start to get withdrawals. so workers born in 1960 would be put into a 2030 target fund. Those born in 1970 would be in a 2040 target fund, and so on. The farther off the date the more risky and more rewarding the investment. The closer to retirement the more cautious the investment portfolio. Basically the funds from younger workers are invested in higher return investments to provide greater growth while older workers contributions are invested in stable return investments to provide regular income for those who are receiving SS checks.
5. As mentioned by others, congress can not touch the program or the money involved.

While a sovereign wealth fund or the RRB sounds like a great idea the issue is that we don't have excess money (RBB) and we don't have a significant source of national income like oil (Sovereign wealth fund).

I would argue that social security was once an entitlement but now it is a necessity. Had corporations keep the pension program around then there could be a significant cutback, but that is not the case.

I've toyed with idea of getting rid of SS and making it into a mandatory 401K like program but that defeats the main purpose of SS which is to help those who need it most live day to day. Without the large single pot of money there would be no checks for the permanently disabled and those who are extremely poor and never had a chance to save. Of for that matter the baby boomers who a screwed thanks to the mistakes they made with the housing market or the kids of the latest generation who may not have SS and will have a crippling national debt to deal with. I suppose a smaller fund for those truly needy and everyone else gets 401K like program could work. Still it would be tough to do, especially since the program has been around for so long, so many people are invested and it is a behemoth. Better to tweak the program at this point.

Of course you will not be able to do anything without a concrete plan that ensures contributors don't suddenly lose money. With out that you are dead in the water on trying to change SS.

We are living significantly longer than when SS was created, so I would phase in a gradual increase in age to catch up with our increased life span.

To those who would privatize SS, I give these observations.

A. For many decades, SS has worked pretty well. It's one of the most successful government programs in existence. So make tiny adjustments if you must, but don't change a fundamental aspect of the program.
B. Investing in stocks? Privately managed accounts? I have just three words: 1987, 2000, 2008.
C. Look at who really supports privatization (or whatever they want to call it): The bankers who will profit from it and the senators who profit from them.

I remember after my grandfather died, having worked for the RR for 50 odd yrs, my grand mother's pension from the RRB was most generous right up to the day she passed. If that system worked that well for those retired RR'ers, then why couldn't it work that well for everyone else.

Government one size fits all solutions don't fit any.

I would bite the bullet and wean the aging population off it over the next 40-50 years by gradually decreasing contributions, payments, expectations; and participation by attrition. I would tell new workers that they need to educate themselves about savings, investments, and retirement planning and end the program. Retirement is not an unexpected event that takes people by surprise. Those who fail to plan would have to "depend on the kindness of strangers."

People should be able to take care of themselves. If I could have added my and my wives contributions to our private investment portfolios we could have retired at age 52, with an significant increase in monthly post tax income and after providing for our own healthcare insurance tailored to our actual medical history and needs. We would also have a substantially higher net worth that the government could steal upon our death.

Raising the age is part of the solution. Let the actuaries do their thing and determine if the SSA "tax" rate needs adjusted. Also need increase the pot for disability. Have Congress return the money narrowed from the trust. Lastly, don't let States, railroads, etc., opt out.

I would remove the limitation of Social Security taxes, so that all income would be subject to social security taxes at the current level for earned income under 120K.

I would raise the retirement age to 70 and make all income taxable for SS.

I would raise the retirement age to 70.
I would remove the cap on contribution.
I would make the program needs based.

Put the 2 Trillion $$$ Bill Clinton out of the Social security Trust fund and replace ... re establish The social security pay outs, to the People who paid into the Trust fund and Those who never put into it don't get shit...