Supporters say flat benefits would guarantee a basic income floor. Critics warn this would weaken a program that most Americans view as earned insurance — and could expose middle-income retirees and homeowners to greater financial risk.
Why structure is important to homeowners
Social Security currently replaces a percentage of a worker’s past earnings, with lower-wage workers receiving a higher replacement percentage.
That structure provides predictability – a key concern for homeowners budgeting for long-term housing costs.
Under a flat benefit model, retirees with decades of higher earnings would receive about the same monthly payment as lower earners, Brookings said.
AEI’s Andrew Biggs proposes a benefit equal to 28% of the national average wage for single pensioners and 41% for couples. Using 2024 wage projections, that would work out to about $19,600 per year for singles and $28,600 for couples.
Although these amounts exceed the federal poverty level, they are significantly lower than current benefits for many middle-income retirees.
For senior homeowners facing rising property taxes, insurance premiums and home repair costs, a flatter benefit could mean less margin for unexpected expenses, Brookings said.
Poverty among seniors is already low
Proponents of flat benefits emphasize poverty reduction, but data in the report suggests that poverty among older Americans is already relatively low.
When underreported income is accounted for using the U.S. Census BureauAccording to the National Experimental Well-Being Statistics, poverty among adults aged 65 and older was approximately 6% in 2021. The percentage was even lower among older citizens.
This is important because Social Security was designed primarily as wage insurance and not as a welfare program.
Experts note that changing the core target could weaken public support and make benefits more vulnerable to future cuts — a risk for homeowners who rely on stable income streams.
Alternative paths to solvency
Other proposals cited by Brookings show that insolvency can be addressed without dismantling the structure of Social Security.
A bipartisan 2025 blueprint from former lawmakers and economists – along with an earlier plan from the Bipartisan Policy Center — would restore long-term solvency through a combination of modest tax increases and targeted benefit adjustments.
These plans maintain wage replacement while gradually raising the taxable wage ceiling, slightly increasing payroll tax rates, and curtailing benefits for higher earners.
They also include benefit improvements such as stronger survivor protections, which help households remain financially stable after the loss of a spouse – a common concern among older homeowners.
Importantly, these approaches avoid abrupt benefit cuts and maintain the link between lifetime income and retirement income.
Policy analysts argue that if Congress wants to further reduce poverty among the elderly, more effective tools exist outside of Social Security, such as expanding Supplemental Security Income, lowering Medicare premiums or increasing housing assistance – all without compromising the predictability of benefits.
As insolvency approaches, Brookings says lawmakers face a difficult choice: adjust Social Security’s finances while preserving its core promise, or redesign the program in a way that could leave many senior homeowners with less retirement security.
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