The future of Social Security has been a topic of concern for quite some time. According to the Social Security and Medicare Boards of Trustees, the system is expected to become insolvent by 2035 unless significant policy changes are made.
In practical terms, this means Social Security will only be able to pay approximately 79% of the scheduled benefits, rather than the full amount. While the system is expected to stabilize at that point, the reduction in benefits could have a widespread and potentially devastating impact on many Americans.
“A decrease in benefits is not a survivable option for benefit recipients, given the already low amount of fiscal support they are receiving,” said Makini Chisolm-Straker, a former White House Fellow. “All ethical Congress members and future presidents need to support (the Social Security Administration’s) work of securing the financial security of the nation’s people.”
What Could Happen to Social Security with the Upcoming Election?
With the election just around the corner, many people are wondering what the successful candidate will do to bolster Social Security. Here are the best- and worst-case scenarios for what might happen if Donald Trump gets elected. These scenarios could also apply to a Kamala Harris presidency.
Best-Case Scenario
Colin Ruggiero, co-founder at DisabilityGuidance.org, believes the best-case scenario for Social Security would be for the economy to improve, which could also lead to more jobs and higher wages.
Possible Outcomes
If the economy thrives:
- More job opportunities could be created.
- Wages might increase, providing greater financial stability.
- Higher wages could mean more contributions to the Social Security fund.
On the other hand, if the economy struggles:
- Job opportunities may decrease.
- Wages could stagnate or even decline.
- The Social Security fund might face additional pressure.
As the election approaches, it is crucial for voters to consider these potential outcomes and how they might affect their financial future. Supporting candidates who prioritize the financial security of the nation’s people is essential for the sustainability of Social Security.
What’s the More Likely Scenario?
“I believe the next likely scenario would be an increase in Social Security payroll taxes for people earning higher salaries — over $168,600 a year,” Ruggiero explained. “This would ensure that wealthier individuals are contributing a fairer share towards Social Security.”
Expert Opinions on Social Security Reform
Kelly Gilbert, owner at EFG Financial, also shares a similar sentiment regarding the current state of Social Security reform.
“Unfortunately, there is no best-case scenario yet,” he remarked. “Social Security reform is desperately needed, but it remains a highly sensitive topic for politicians. Anyone who proposes a fix for Social Security risks being demonized by their rivals.”
As the debate continues, it’s clear that finding a viable solution for Social Security reform is a complex challenge. The conversation is ongoing, and changes to the system will require careful consideration and bipartisan support.
When considering the worst-case scenario after the next presidential election, both Ruggiero and Gilbert share a similar outlook: that no significant changes will actually take place.
The Likely Outcome: Status Quo
“The worst-case scenario is probably the most probable,” Gilbert remarked. “After the election, it is likely nothing will be fixed and the proverbial can will be kicked down the road for another term.”