Would a Trump Win Impact Social Security? 5 Money Facts for Retirees

As Donald Trump is now officially the Republican candidate for president in 2024, it’s a good time to take a closer look at what his policies might be if he wins. Of particular importance to seniors is what Trump might do to Social Security during a potential second term.

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While he has said many different things about the subject over the years, some of his recent comments have sparked concern among Social Security recipients. Here’s a look at the recent controversy Trump started along with what he has said in the past, what the current status of the program is, and what you can do to prepare for any potential changes.

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Trump’s Recent Comments Revived Spectre of Social Security Cuts

In a phone interview with CNBC on Mar. 11, 2024, Trump said the following when asked about how he would manage the solvency problem with Social Security:

“So first of all, there is a lot you can do in terms of entitlements, in terms of cutting. And in terms of, also, the theft and the bad management of entitlements — tremendous bad management of entitlements — there’s tremendous amounts of things and numbers of things you can do.”

Not surprisingly, his opponent in the Nov. election, incumbent President Joe Biden, responded with a tweet saying, “Not on my watch.”

The idea that Trump might cut entitlements if he wins a second presidential term could mean anything, especially given his mercurial nature. But it must be noted that as the presidential election starts heating up, there’s likely to be much more discussion about this subject by both candidates, hopefully providing more clarity.

Trump Later Clarified His Statements

Speaking with conservative news outlet Breitbart two days later, Trump sought to make his intentions clearer, saying “I will never do anything that will jeopardize or hurt Social Security or Medicare. We’ll have to do it elsewhere. But we’re not going to do anything to hurt them.”

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The former president went on to say, “There’s so many things we can do. There’s so much cutting and so much waste in so many other areas, but I’ll never do anything to hurt Social Security.”

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Where Has Trump Stood Historically on the Subject?

Throughout his political career — and beginning far before that — Trump has had a wide range of opinions about entitlement programs like Social Security.

In 2000, for example, he suggested raising the full retirement age to 70 and called Social Security “a huge Ponzi scheme” in a book he co-wrote, “The America We Deserve.” As of 2024, however, he has completely reversed that position, criticizing his then-rival Nikki Haley for suggesting raising the retirement age.

By the time Donald Trump became candidate Trump in 2015, he positioned himself as a protector of Social Security, saying “I’m not going to cut Social Security like every other Republican, and I’m not going to cut Medicare or Medicaid.”

As of Mar. 11, 2024, the official Trump position, as outlined by his campaign spokesperson Karoline Leavitt, is as follows: “President Trump delivered on his promise to protect Social Security and Medicare in his first term, and President Trump will continue to strongly protect Social Security and Medicare in his second term.”

What’s the Current Status of Social Security?

The bottom line is that as it currently stands, Social Security is in line to cut benefits by 20% starting as early as 2033. The reason is primarily a demographic one. As Americans live longer, the proportion of seniors receiving benefits to younger Americans still in the workplace has become skewed.

Since the bulk of Social Security is funded with payroll taxes on current workers, this disparity has resulted in a funding shortfall, with the Social Security Trust Fund expected to run out in 2033. Ongoing payroll taxes will continue to fund approximately 80% of the needed benefits, but unless something is done, that 20% cut will become inevitable.

Is There Anything You Can Do To Prepare?

For workers, the best strategy regarding Social Security is and has always been to bulk up your retirement savings as much as possible while still working. If you can build a sizable nest egg, you won’t have to rely as much on your Social Security benefits.

If you’re already retired, be proactive and plan ahead for potential cuts. Whether through presidential changes or the natural depletion of benefits, do what you can to cut your expenses and live on less money. Some options include reducing discretionary spending, downsizing, sharing expenses with someone else or moving to a more affordable area, city, state, or country.

You can also approach the problem from the other side of the equation by trying to boost your income. Picking up a side gig, renting out extra rooms in your house or turning your hobbies into income-generating opportunities are just a few suggestions you may be able to implement.

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