For all the problems plaguing social security, there are three basic solutions: cut benefits, raise taxes, or borrow from the Federal Government. Each of these solutions has serious downsides that must be taken into consideration. Cutting revenues by beginning to fund defined-contribution accounts would slash benefits and renege on the pledges given to near-retirees. If taxes increase, workers have to support the retirees as well as simultaneously contribute more to their own retirement. If the government borrows against Social Security, in the end, that burden would shift to the taxpayers. It is largely accepted that some alteration needs to be made in order for the system to survive.
