U.S. Sens. Elizabeth Warren (D-Mass.) and Bernie Moreno (R-Ohio) are calling on Congress to shore up Social Security by lifting the cap on wages subject to payroll taxes.

The proposal comes as policymakers and financial professionals warn of looming funding shortfalls and widespread confusion among retirees about how the program works.

In an essay published Tuesday by The New York Times, Warren and Moreno urged Congress to eliminate the Social Security payroll tax cap, currently set at $184,500 for 2026.

Under current law, workers and employers each pay 6.2% in payroll taxes only on wages up to that threshold.

Warren and Moreno argue that removing the cap would raise roughly $3 trillion over 10 years and extend the program’s solvency, helping avoid depletion of the Social Security trust fund by late 2032 and a potential benefit cut of more than 20%.

“We don’t agree on everything, but here’s one thing we do agree on: Congress must act now to save Social Security for generations of Americans to come,” Warren and Moreno wrote.

They said the change would address what they describe as an imbalance in the system, where high earners pay a smaller share of total income into Social Security once they exceed the cap. The senators also framed the issue in terms of fairness across income groups.

“This is a no-brainer: The wealthiest Americans, who have benefited the most from America’s opportunities, should contribute the same percentage of their income as a factory worker in Chillicothe, Ohio, or a teacher in Worcester, Mass.,” they added.

Trust fund warning, retirement planning

The essay cited projections from Social Security trustees showing the program’s main trust fund could be depleted in about six years if Congress does not act.

After that point, benefits would be automatically reduced by more than 20%, affecting tens of millions of retirees.

The senators said Social Security remains a foundational “covenant” between workers and the federal government, financed through payroll contributions made over a lifetime of work.

At the same time, retirement experts say confusion about Social Security is creating opportunities for broader financial planning discussions.

During a recent webinar hosted by the National Reverse Mortgage Lenders Association (NRMLA) that featured Thomas Drapala of the National Association of Registered Social Security Analysts, presenters said many Americans lack basic understanding of their future benefits.

“Social Security is a universal topic,” Drapala said. “Almost everyone is going to claim it. Not everyone will get a reverse mortgage, but many of the same clients qualify for both conversations.”

Drapala told roughly 160 registrants from 47 companies across 35 states that 51% of Americans do not know how much of their retirement income will come from Social Security, while 42% do not know their expected monthly benefit and 33% are unsure of their full retirement age.

“When I help my clients with their Social Security, aside from Social Security itself as their main retirement income, a lot of times the other main asset that they have is their home,” he said. “And I think it’s all of our jobs as professionals, whether you’re a reverse mortgage agent or whether you deal with Social Security as I do, we’re there to educate clients so that they can live the secure retirement that they’re looking for.”

Housing, income stability link

Speakers at the webinar also said Social Security planning can intersect with housing decisions, particularly for older homeowners who are weighing reverse mortgages as a way to remain in their homes.

“The general theme is enabling someone, at least from a financial standpoint, to stay in their home indefinitely,” said Chris Downey, senior vice president at Federal Savings Bank and co-chair of NRMLA’s education committee. “You’ve got to do what is best for the client, not for your sales numbers.”

Drapala said Social Security can function as a stable income base for fixed expenses, while other tools — including home equity — can supplement retirement planning.

This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.