Industry News

On May 19, 2026, the Center for Retirement Research (CRR) at Boston College published its issue brief, Can Equity Investments Help Social Security’s Finances? The brief examines the impact of investing in equities to address the Social Security program’s financial shortfall.

Due to the financial challenges of the program, the combined Old-Age, Survivors, and Disability Insurance (OASDI) trust fund is projected to exhaust its assets within the next 10 years. After that time, the incoming revenues are expected to only cover about 80% of scheduled benefits.

The brief’s findings caution that although equity investments may help to improve the program’s long-term financial condition, reliance on federal borrowing to fund an equity investment portfolio would not be optimal.

According to the issue brief, “introducing equities can help the program’s finances if coupled with a reform package that restores solvency. If Congress enacted an immediate tax increase (or benefit cut) that closed the long-run financing gap, then a 40-percent allocation to equities could reduce the need for future tax increases or benefit cuts. However, the window of action is limited. If Congress waits to implement the same plan in 2034, it would likely not provide a permanent fix.”

It concludes, “For policymakers, the implication is straightforward. If equity investment is to play any constructive role in Social Security reform, it must be considered early, alongside a comprehensive solvency package that restores balance between revenues and benefits and rebuilds reserves.”

The brief is available here.