As debates around Social Security intensify amid concerns over its long-term sustainability, Scott Galloway, NYU professor, bestselling author, and entrepreneur is challenging Americans to rethink both retirement and who should be receiving benefits.
Social Security stands as a cornerstone of financial planning for millions, but Galloway argues that the system should prioritize those who need it most. Despite earning $16 million a year, he pays the same amount, $9,000 in Social Security tax as someone earning $160,000. That, he says, is fundamentally unfair.
Galloway is a vocal supporter of means-testing. That is a process that would determine Social Security eligibility based on income and assets. He believes the benefits should be reserved for those who truly depend on them, not high earners like himself.
“Most people take out two to three times what they put in,” he said, questioning whether someone of his financial standing should be eligible for benefits at all. “The money should be used to support those who genuinely need it.”
He also criticized how little the ultra-wealthy contribute to funding the program. “I pay $9,000 in Social Security taxes each year, which is the same amount paid by someone with an annual income of $160,000,” he said.
Galloway’s statement comes at a time when Americans are very anxious about the future of Social Security. The Social Security Administration (SSA) projects its trust funds could be depleted by 2033, which could lead to beneficiaries receiving only about 80% of expected payments if no legislative action is taken.
But Galloway doesn’t believe the system is actually at risk.
Sen. Rick Scott (R-FL) wants to force retirees back into the workforce.
Our Executive Director Alex Lawson tells him hell no. Let’s make billionaires pay their fair share into Social Security instead! pic.twitter.com/hLIuOAvwAs
— Social Security Works (@SSWorks) January 29, 2025
“Old people keep living longer, and they vote, so we’re more likely to get rid of schools, the space program, and half the Navy before we fail to fund Social Security,” he wrote in his book The Algebra of Wealth.
Instead, he’s encouraging Americans to think bigger and much earlier about achieving financial independence.
“I want you to obtain economic security before you stop working,” Galloway wrote. “The sooner the better.”
He gives a picture of what’s possible. “You could apply the principles of this book and, with some luck and a lot of hard work, be living on a boat in the Caribbean by age 40, never earning another dollar,” he wrote.
In The Algebra of Wealth, Galloway lays out a framework for financial security built around what he calls a person’s “burn rate”; the amount of money you spend annually.
Today in every state across our nation, Americans are standing up to the administration as they implement Project 2025 at full speed.
Thank you for using your voices and the power of protest to stand for Social Security, Medicare, and Medicaid; for the Department of Education…
— Kamala Harris (@KamalaHarris) April 5, 2025
“Once you’ve achieved economic security, you may decide to continue to focus on work and professional achievement. I have,” he wrote. “But the stress surrounding work declines dramatically when it becomes a surfboard instead of a life preserver. We perform better when we are confident.”
To determine financial security, he asks people to compare their passive income to their burn rate. If passive income exceeds it, you’ve made it.
Galloway explains the process simply:
“Rough out your projected expenses for a year and add them up. Bump it 20% to cover taxes (30% if you expect to live in California, New York, or another high-tax state). That’s your annual burn rate.
Now multiply that burn rate by 25. That’s (roughly) your number — the asset base you need to generate passive income greater than your burn. Why 25? That assumes your assets produce income at a rate of 4% over inflation. Different financial planners will suggest slightly different numbers, but 4% is in the ballpark, and 25x makes the math easy.
This is just a rough sketch. Our tax estimate is simplistic. Your burn rate will rise if you have kids in the house and fall when they move on.
But any work of art starts with a rough sketch. If you need $80,000 a year to cover your burn rate, then $2 million is your number. If you hit that in invested assets, then you win — you’ve beaten capitalism.”
Looks like, Galloway’s message is clear. Don’t wait for retirement, plan for economic freedom now.
