If You Live in Michigan, Here’s How a Kamala Harris Presidency Might Affect Your Retirement
Written by
Angela Mae
Edited by
Molly Sullivan
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Michigan is a swing state that looms large in the presidential election. With the election only about a month away, it’s anyone’s guess whether the Democrats or Republicans will get the state’s 15 electoral votes. This means either Vice President Kamala Harris or former President Donald Trump, the two leading candidates in this year’s election, could take office.
For those who live in Michigan and are either preparing to retire or have already left the workforce, the next president’s policies could directly — or indirectly — impact their finances in retirement. If Harris wins, here are some possibilities of what could occur.
Rising Inflation
Both retirees and non-retirees are wondering what will happen with inflation (the rate at which everyday goods and services increase in price) in the coming years. After all, rising costs can impact anyone’s budget, especially those on a fixed or low income.
The average annual rate of inflation was 1.9% from 2017 to 2021, which was during the time Trump was president. It’s averaged out at roughly 5% during Biden’s term, though there have been extenuating circumstances for this.
Harris has proposed addressing inflation starting with high grocery, housing and healthcare prices. While the housing assistance — which would come in the form of $25,000 in assistance for first-time buyers — might not affect Michigan retirees, the rest could work in their favor.
In August 2024, a Moody’s Analytics report indicated the macroeconomic impacts of a Harris vs. a Trump presidency. The report predicts an average annual inflation rate of 3.5% in 2025 if Trump wins and Republicans sweep. It predicts a 2% annual inflation rate if Harris wins with a divided Congress.
But not everyone agrees.
“On the basis of inflation alone, those on a fixed income will be negatively impacted by a Harris presidency,” said Kevin Jerry, a nationally recognized expert in tax method changes and the owner of Kevin A Jerry MST & Associates.
Changes to Social Security and Medicare
Harris has stated her intention to strengthen and protect Social Security and Medicare.
“She will strengthen Social Security and Medicare for the long haul by making millionaires and billionaires pay their fair share in taxes,” according to the official Harris-Walz campaign site. “She will always fight to ensure that Americans can count on getting the benefits they earned.”
The Trustees of the Social Security and Medicare trust funds predicts the Social Security Old-Age and Survivors Insurance (OASI) fund will become insolvent in 2033, meaning it will only then pay out 79% of scheduled benefits. Medicare is expected to pay out the full benefits amount until 2036.
Considering about half of all retirees (or those ages 65 and up) rely on Social Security to support them financially throughout retirement, Harris’ promise could prove beneficial if it comes to fruition.
Changes to Healthcare
On the Harris-Walz campaign site, Harris has also promised to “make affordable health care a right, not a privilege by expanding and strengthening the Affordable Care Act and making permanent the Biden-Harris tax credit enhancements that are lowering health care premiums by an average of about $800 a year for millions of Americans.”
Along with this, she’s proposed putting a $35 cap on insulin and a $2,000 cap on out-of-pocket medical expenses for everyone, not just seniors on Medicare. She’s also said she’ll work toward accelerating negotiations to cut prices and make prescription medication more affordable to Americans.
During her time as vice president, Harris also cast the deciding vote on Biden’s American Rescue Plan, which improved both child care and long-term healthcare.
According to her campaign site, “she will fight to lower care costs for American families, including by expanding high-quality home care services for seniors and people with disabilities” as president.
Expiry of the TCJA and Increased Taxes
The Tax Cuts and Jobs Act of 2017 brought about significant tax reforms, including tax credits and deductions that brought much-needed relief to many Americans. It’s set to expire at the start of 2026, however. If Harris is elected, individuals who once benefited from the TCJA — including retirees in Michigan — will no longer receive the same benefits.
This could result in higher taxes, including for retirees with large estates, and an overall rippling effect on their finances.
“On a gross basis, I estimate Harris’s proposals would increase taxes by about $4.1 trillion from 2025 to 2034,” Jerry said. “Everyone in Michigan will feel this increase. Harris states she will only increase taxes on those making greater than $400K per year, but the huge increase in government spending simply cannot be absorbed by the top 5% of taxpayers.”
For now, this is all speculation based on campaign proposals and past patterns. What happens with a potential Harris presidency — and its impact on Michigan retirees — remains to be seen.
Editor’s note on election 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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