It’s also important to mention that universal participation and the complete absence of means-testing might make Social Security extremely efficient to administer. Administrative costs only amount to 0.5 percent of annual benefits, which is far lower than the percentage for private retirement annuities.
Means-testing Social Security might impose significant reporting requirements, as the processing could easily burden both recipients and administrators, drastically undercutting most advantages while also yielding too little savings.
In the end, Social Security’s universal nature is exactly what makes it so stable. Most Americans will confirm they oppose cuts to Social Security, mostly because they value it for themselves, their own families, and millions of other people who rely on it.
