4 Things That Could Remain the Same for Social Security Benefits Now That Trump Took Office
Written by
Terence Loose
Edited by
Cory Dudak
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Now that Donald Trump is has started his second term as president, backed by a Republican-controlled House and Senate, there has been a lot of talk surrounding Social Security. Specifically, whether or not changes or cuts in benefits are coming has been widely speculated upon.
Trump said on the campaign trail that no cuts to Social Security are coming, and instead promised to remove taxes on Social Security. However, with Elon Musk’s goal of cutting $1 to $2 trillion from the U.S.’s $6.75 trillion budget, Social Security is a prime target. At $1.75 trillion, it’s the largest piece of the spending pie.
With 68 million seniors drawing more than $1.5 trillion in payouts during the year, according to the Social Security Administration, it’s understandable why this is important. While experts agree something has to be done before 2035 when funding shortages will force a 20% cut to Social Security benefits, according to Congress’ Ways & Means Committee, changes to the program can’t be counted on.
“With so many issues on the table, it’s likely that Social Security will just keep rolling along without major changes, at least in the immediate future,” said Paul W. Carlson, an investment and retirement expert and managing partner at Law Firm Velocity.
Of course, that can cut both ways. While it might mean payouts won’t diminish, it may also mean losing out on other benefits. Here are four areas that, for better or worse, will likely stay the same.
Raising the Full Retirement Age
The full retirement age (FRA) is the age set by the government when workers are eligible to receive their full benefits. Taking benefits before then results in a reduced amount. The FRA depends on a person’s birth date, and now stands at 67 for anyone born 1960 or later. Chris Orestis, president at Retirement Genius and a national retirement expert, said the retirement age won’t change for anyone on or near Social Security.
“You really can’t take benefits away from people or change qualifying age formulas for those already on the program, but it is more manageable to reduce benefit levels in the future and/or increase ages for people who are yet to go on Social Security,” he said.
Taxes on Social Security Income
On the campaign trail, Trump promised to get rid of income taxes on Social Security. That could be a big win for many seniors since, according to the Social Security administration, about 40% who receive Social Security benefits must pay income tax on them. That brought in nearly $51 billion for the fund in 2023, so it would also only make the looming Social Security bankruptcy worse. Plus, it would merely give a tax cut to those who probably don’t need it, said Orestis.
“Although Americans always welcome a tax cut, this would primarily benefit higher-income seniors while penalizing workers and ignoring low-income beneficiaries who rely on these programs the most,” he said. That’s because most seniors who pay taxes on Social security do so because they earn other income that puts them in a higher tax bracket. Orestis noted it could also result in higher payroll taxes to make up for the gap, putting increased financial pressure on workers. So, if you’re one of that 40% who pays taxes on Social Security, prepare for a sudden case of political amnesia on this promise.
Cost-of-Living Adjustments (COLAs)
These are the small increases in benefit amounts that help Social Security keep pace with inflation. For instance, the 2025 COLA increase is 2.5%. Changing these by either lowering or eliminating them would mean less buying power for seniors.
“COLAs will probably be a hot topic, but they won’t change much,” Carlson said, predicting that might be true even if inflation spikes again. “Seniors could find themselves in a bind as their expenses rise but their benefits stay flat,” he said. “It’s frustrating because people are counting on those increases to keep up with the cost of living.”
Medication Benefits
Technically not part of Social Security, Medicare Prescription Drug Coverage (Part D) is the country’s program for helping those age 65 and older pay for medications prescribed by a physician. It’s also often a heated subject, with many politicians bemoaning the cost of the program while others complain it’s not robust enough. But will anything change, one way or another?
Probably not, said Carlson. “It’s likely to remain unchanged too. People still need those meds, and while there’s always noise about reforming healthcare costs, I can’t imagine there being major shake-ups on that front just yet.”
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