Social Security isn't that hard to fix (Medicare, that's another matter). What's lacking, of course, is the political will.
The system could gain more funding by removing the "wage base" cap on FICA contributions. (Sure, that would make SS appear more like an ordinary welfare program, but that's really what it is anyway.) Or the system's actuarial cost can be reduced by changing how cost of living increases are determined, or by raising the normal retirement age. Heck, the system can even be propped up by immigration reform (did you know that illegals are a boon to Social Security because many pay in but don't get paid out?)
It's important to preserve SS as a safety net, because less than a quarter of working Americans are eligible for private pensions. Successful retirement stands on two legs - income security that you can't outlive, which is what SS and a traditional private pension provide, and retirement savings, which government policy primarily subsidizes by means of 401(k) plans. Each plays a role but has a key shortcoming. SS will last until you die, which is great when you live to be 100 but sucks if you die at 60 having never collecting a penny. A 401(k) plan will help you build wealth you can pass to your heirs, but if you live long and don't live frugally that nest egg will soon be gone.
You've no doubt heard the stories that most of us are unable or unwilling to save for their retirement, which causes SS to assume an outsize role in preserving the dignity of older Americans. I used to favor GOP proposals to privatize SS, or allow younger workers to divert a part of their contributions to savings accounts. I've become less enamored of such reforms as I watch the private pension system become increasingly unsustainable and limited to a privileged few (e.g., government workers).
Social Security is the backbone that must not break.
