When people talk about investing, one of the most famous quotes they mention is: “Be fearful when others are greedy, and greedy when others are fearful.” This advice comes from Warren Buffett, one of the most well-known and successful investors in history. As the head of Berkshire Hathaway, Buffett has outperformed the overall stock market (the S&P 500) for over 40 years, nearly doubling its average yearly return. Because of his track record and sharp eye for market trends, many people pay attention to what he says — and that includes his views on Social Security.
Buffett believes that Social Security isn’t just a government program — it’s a shared responsibility that helps protect older Americans who have finished working. He’s supported this idea for a long time. Back in 2005, during a Berkshire Hathaway meeting, Buffett was asked about the future of Social Security and how sustainable it is. He pointed out that the U.S. is a very wealthy country, and that working people should be able to support those who are retired, even if the number of retirees is growing compared to the number of workers.
Social Security is funded through a federal payroll tax called FICA (Federal Insurance Contributions Act). The money goes into a trust fund called the Old-Age and Survivors Insurance (OASI) Trust Fund. This fund pays out benefits to retirees using the money it currently has in reserve.
The problem is that this fund is running low. Right now, experts predict that the OASI will only be able to pay full benefits until the year 2033. After that, unless changes are made, it will only be able to pay about 77% of what retirees were promised. That would mean a big drop in income for millions of people.
Buffett has offered a few ideas on how to fix this problem:
1. Raise Taxes on the Wealthy
Buffett has long said that rich people like himself should be paying more in taxes. In fact, back in 2011, he wrote an article saying it was unfair that he paid a lower tax rate than his own employees. Specifically for Social Security, in 2005, he suggested that higher-income people should keep paying into Social Security even after they hit the income limit — which at the time was $90,000.
In 2025, that cap has risen to $176,100. But Buffett’s idea still holds weight: people who make more money could continue paying into the system to help keep it strong. There’s even a new proposal in Congress called the You Earn It, You Keep It Act. If passed, it would make people pay Social Security taxes on income over $250,000, which could help fund the program until at least 2058.
Buffett also pointed out how unfair it is that wealthy people pay a smaller share of their income toward Social Security compared to regular workers. He called this “nonsense” in a country like the U.S.
2. Raise the Retirement Age
Back in the 1980s, the government gradually increased the full retirement age from 65 to 67. This helped reduce pressure on the Social Security system by delaying when people could collect full benefits.
Some lawmakers are now saying it might be time to raise the retirement age again, since people are living longer and staying healthy longer. Buffett agreed with this idea as far back as 2005. He said that since people are living much longer than they did in the 1930s, when Social Security started, it makes sense to increase the age when people start collecting full benefits.
Working a few more years would mean people pay into the system longer and take out less over time — helping to stabilize the system as more people retire.
3. Cutting Benefits Should Not Be an Option
Buffett strongly opposes the idea of reducing Social Security benefits. He believes that the wealth of the country should be used to support people in retirement — not leave them struggling.
In 2005, he said that it’s simply unfair that people who’ve worked hard all their lives should get less support. He also talked about how many people live in fear of medical bills or not having enough money when they’re older. He believes society should reduce that fear as much as possible.
In Summary
Warren Buffett sees Social Security as a critical part of our society, not just a government program. He believes that those who have more should help those who have less. To keep the system strong, he supports raising the income cap on Social Security taxes and increasing the full retirement age — but he’s firmly against cutting benefits for people who rely on them.
Right now, lawmakers are debating ideas that could reshape Social Security, including the You Earn It, You Keep It Act, which could extend funding by raising taxes on high earners and eliminating taxes on Social Security benefits. There’s also been some talk of raising the retirement age again, though for now, that idea isn’t being actively pursued by Social Security officials.
Whatever happens in the future, it’s wise to stay informed and financially prepared for any changes that could affect retirement income.
