2 Changes That Could Affect Your Social Security Under the Trump Administration
Written by
T. Woods
Edited by
Cory Dudak
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During his 2024 campaign, President-elect Donald Trump made a number of promises regarding America’s Social Security program. Now that he will once again be sitting behind the desk of the Oval Office, what can Americans expect to change about Social Security over the next four years?
Here are details on two changes to anticipate regarding what to expect for Social Security in 2025 and beyond.
More Benefits for Baby Boomers
As reported by Business Insider, Trump has promised to cut taxes on Social Security benefits in the coming years. The impact of such a decision would potentially increase the benefits received by boomers in the short term, increasing the amount of their monthly checks. However, the longevity of this plan is suspect, as it would more quickly deplete millions of dollars from the fund.
Yet, as Trump stated on a recent “Fox & Friends” broadcast, “People on Social Security are being killed, and one of the things I’m doing is no tax for seniors on Social Security, and I’ll get it done quickly.”
Fewer Benefits for Younger Generations and Low-Income Retirees
While Trump’s decision to cut taxes on benefits would likely increase benefits for baby boomers, it would more than likely drain America’s Social Security fund in the process. As a result, a depleted fund could leave fewer benefits for younger generations and low-income retirees.
Social Security — which is financed primarily via payroll taxes paid yearly by U.S. workers — is already set to be wholly depleted by the next decade unless Congress takes some form of action.
As noted by the nonpartisan Committee for a Responsible Federal Budget, Trump’s proposed cuts would lead to a 33% benefit cut in Social Security by the year 2035, which would fall more upon America’s younger generations who will come to retirement age by or after that time.
Final Take To GO
The bottom line is that Social Security and the politics surrounding it have always been a sticky wicket throughout its history. Everyone — from economists to members of Congress — has their own interpretation and recommendation for what is best to do for retirees. Under Trump’s administration, major changes seem to be coming in many areas, including public health, private sectors, the Supreme Court and yes — Social Security.
Caitlyn Moorhead contributed to the reporting for this article.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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