(TNND) —

The Cato Institute has shared a public opinion poll revealing a significant generational gap regarding Social Security reform and highlighting common misconceptions about the program’s structure and future.

While a sizable 83% of Americans view Social Security positively, almost one-third doubt its sustainability until they reach retirement age.

Furthermore, nearly 60% believe that younger employees face worse treatment than current retirees. Just over 60% also feel that Congress has reneged on promises related to the program.

A notable portion of those over 65 think it’s essential to safeguard current benefits, even if it necessitates tax hikes for younger workers. In contrast, most individuals under 30 believe that younger workers should be shielded from tax increases, even if that means reducing benefits for those already retired.

Interestingly, Gen Z is much more inclined—by a factor of eight—to advocate for cuts to both current and future retiree benefits as a solution to Social Security’s financial issues (47% vs. 6%).

Emily Eakins, who oversees public opinion research at the Cato Institute, noted, “Let’s be clear: Young people and older folks have very different levels of knowledge regarding Social Security.” According to her, retirees possess a deeper understanding than Gen Z. But when Gen Z is informed about the impending need for benefit cuts—projected to be about 25% starting in 2033 unless Congress intervenes—they express starkly different views.

Experts predict the Social Security Trust Fund will become insolvent by 2033. While this doesn’t mean benefits will completely dry up in 2034, it implies that retirees will only receive payments based on current revenue coming from payroll taxes paid by working Americans.

If no corrective actions are undertaken, retirement benefits are expected to shrink by around 23% over the next decade. Until 2010, contributions by workers exceeded the benefits dispensed by the federal government, but since then, Social Security has relied on over $1 trillion in borrowing to bridge that gap.

Forecasts suggest that an additional $4 trillion will need to be borrowed by 2033 to manage the ongoing deficit. Longer lifespans mean more people receiving Social Security for extended periods, while lower birth rates result in fewer workers available to fund these benefits.

In the 1950s, there were 16 workers contributing for each Social Security beneficiary. Now, that ratio has dwindled to 2.7 workers per beneficiary, according to Romina Boccia, who directs budget and rights policy at the Cato Institute.

Eakins pointed out that many Americans don’t realize that Social Security operates as a pay-as-you-go system, where current tax revenues are utilized to fund senior benefits. “It’s not like a retirement account in your name,” she clarified, highlighting a common misunderstanding.

The younger generation tends to have the least knowledge about Social Security and is also less inclined to vote, which results in a heavier burden on them for funding benefits. In contrast, older voters tend to participate in elections at higher rates, which incentivizes politicians to prioritize benefits for retirees, even if it leads to an unsustainable trajectory for Social Security.

Eakins mentioned that if young people are well-informed, they show support for Social Security reform initiatives. Potential reforms could include increasing the retirement age, modifying benefits, or transitioning to a fixed benefit structure.

While the public displays some willingness to entertain tax increases, support diminishes when specific amounts are proposed. Eakins noted that many would back a modest annual tax hike ranging from $200 to $600, but opposition arises when faced with a hypothetical increase of $1,300. Realistically, maintaining current benefits would likely necessitate an annual tax raise exceeding $2,600, which “doesn’t ensure any return for you,” Eakins highlighted, qualifying that it merely guarantees the interests of others.

Additionally, seven out of ten Americans back the idea of forming a bipartisan commission aimed at enhancing Social Security. “This was the only reform proposal that garnered a clear majority of support and that we could actually pursue,” she emphasized.

This independent commission, akin to one that helped determine military base closures, could provide lawmakers with political cover to make difficult decisions regarding Social Security reforms.