Report on U.S. Social Security System’s Alignment with Sustainable Development Goals

Executive Summary: Public Perception and Institutional Confidence

An analysis of a recent AARP survey reveals critical insights into public perception of the U.S. Social Security program and its alignment with key Sustainable Development Goals (SDGs). While the program is deemed essential, declining confidence and significant knowledge gaps present challenges to its role in achieving social and economic stability.

• Program Importance: 96% of respondents affirm the importance of Social Security, underscoring its role as a foundational social protection system.
• Eroding Confidence: Public confidence in the program’s future has decreased from 43% in 2020 to 36% in 2025, signaling a challenge for SDG 16 (Peace, Justice and Strong Institutions).
• Concerns over Adequacy: 78% of respondents worry that Social Security benefits will be insufficient for retirement, highlighting a perceived threat to SDG 1 (No Poverty) and SDG 3 (Good Health and Well-being).

Analysis in Relation to Key Sustainable Development Goals (SDGs)

The Social Security system is a primary mechanism for advancing several SDGs by providing a social safety net for over 70 million Americans. However, public concerns and misunderstandings threaten its effectiveness.

• SDG 1 (No Poverty) & SDG 10 (Reduced Inequalities): The program serves as a critical social protection floor intended to prevent poverty among the elderly and disabled. The widespread fear of benefit inadequacy directly conflicts with the goal of ensuring a basic standard of living and reducing income inequality in later life.
• SDG 3 (Good Health and Well-being): Financial security is a key determinant of health. The stress associated with potential retirement shortfalls and uncertainty about the program’s future can negatively impact the mental and physical well-being of millions.
• SDG 8 (Decent Work and Economic Growth): As a stable retirement system, Social Security supports economic stability by enabling older workers to retire, which can create labor market opportunities for younger generations. Uncertainty undermines this function.
• SDG 16 (Peace, Justice and Strong Institutions): The decline in public trust reflects on the perceived strength and reliability of a major public institution. With beneficiaries expected to grow to 82 million by 2035, reinforcing confidence in the system is paramount for social cohesion.

Identified Knowledge Gaps and Implications for SDG Achievement

The survey identified significant gaps in public knowledge that could undermine the program’s ability to meet its SDG-related objectives.

1. Misunderstanding of Trust Fund Solvency

   A prevalent misunderstanding exists regarding the program’s financial future upon the projected depletion of its trust funds.

   • Incorrect Belief: 47% of respondents wrongly believe benefits would be cut by at least half.
   • Projected Reality: Official projections state that ongoing payroll tax revenue would still be sufficient to pay 81% of scheduled benefits.
   • SDG Implication: This misinformation erodes trust in a key public institution (SDG 16) and creates unnecessary anxiety, impacting well-being (SDG 3).

2. Lack of Awareness Regarding Benefit Claiming Ages

   A significant portion of the public is unaware of how the timing of their claim impacts their financial outcome.

   • Knowledge Gap: 41% did not know the earliest claiming age (62), and 66% did not know the age to receive maximum benefits (70).
   • Financial Impact: Claiming at age 62 versus 67 can result in a permanent 30% reduction in monthly benefits.
   • SDG Implication: Uninformed decisions can lead to permanently lower retirement income, directly hindering progress on SDG 1 (No Poverty) and potentially worsening outcomes for vulnerable groups, thereby challenging SDG 10 (Reduced Inequalities).

Generational Disparities in Program Confidence

Confidence in Social Security varies significantly by age, posing a challenge to intergenerational equity and institutional trust.

• Pessimism Among Youth: Younger Americans, particularly those in their 30s, report the lowest levels of confidence in the program’s future.
• Implication for SDG 16: This generational divide in trust threatens the long-term social contract and the perceived legitimacy of this foundational institution. This may be attributed to a lack of direct experience with the program’s benefits.

SDGs Addressed in the Article

• SDG 1: No Poverty
• SDG 10: Reduced Inequalities
• SDG 16: Peace, Justice and Strong Institutions

Identified SDG Targets

• SDG 1: No Poverty

  • Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
    
    Explanation: The article is centered on Social Security, a key national social protection system in the United States. It explicitly states that the program “provides monthly benefit checks to more than 70 million Americans, including retirees, disabled individuals and families,” directly addressing the implementation and coverage of a social protection system for vulnerable groups.

• SDG 10: Reduced Inequalities

  • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.
    
    Explanation: Social Security is a social protection policy designed to reduce economic inequality, particularly among the elderly and disabled. The article highlights concerns about the policy’s effectiveness, noting that “78% worry Social Security won’t provide enough to live on in retirement,” which points to the challenge of achieving greater equality through this system.

• SDG 16: Peace, Justice and Strong Institutions

  • Target 16.6: Develop effective, accountable and transparent institutions at all levels.
    
    Explanation: The article discusses public perception and understanding of the Social Security Administration, a major public institution. The findings that “confidence in the future of the program has dropped” and that a large portion of the public misunderstands key financial aspects, such as what happens at “trust fund depletion dates,” relate directly to the perceived effectiveness and transparency of the institution.
  • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels.
    
    Explanation: The article underscores the public’s stake in the future of Social Security, stating that “Almost all respondents, 96%, say Social Security is important.” The call from AARP for politicians to not “play games with the future of Social Security” is a demand for responsive decision-making that reflects the needs and overwhelming support of the population it serves.

Indicators for Measuring Progress

• Target 1.3: Social protection systems coverage

  • Indicator: Proportion of the population covered by social protection systems.
    
    Explanation: The article provides specific numbers that can be used as an indicator of coverage. It states that Social Security currently covers “more than 70 million Americans” and is projected to grow to “82 million by 2035.” These figures directly measure the reach of the social protection system.

• Target 10.4: Effectiveness of social protection policies

  • Indicator: Public perception of the adequacy of social protection benefits.
    
    Explanation: The survey finding that “78% worry Social Security won’t provide enough to live on in retirement” serves as an implied indicator of the perceived adequacy of the policy in ensuring economic security and reducing inequality for retirees.

• Target 16.6: Public confidence and understanding of institutions

  • Indicator: Level of public confidence in key government programs.
    
    Explanation: The article explicitly measures this by stating, “confidence in the future of the program has dropped 7 percentage points in the past five years — to 36% in 2025 down from 43% in 2020.”
  • Indicator: Public understanding of the institution’s processes and financial status.
    
    Explanation: The survey results provide a clear indicator of a lack of transparency or effective communication. For example, “47% of respondents wrongly believe that retirement benefits would be cut by at least half when the trust funds are depleted,” and “just 34% of respondents to the survey correctly said Social Security benefits will be paid at a reduced level.”

Summary of SDGs, Targets, and Indicators

Source: cnbc.com