Social Security Benefits Could Be Affected by the Outcome of the 2024 Election

Social Security Benefits Could Be Affected by the Outcome of the 2024 Election.Amidst the heightened political tensions leading up to the 2024 U.S. presidential election, it’s crucial to remember that some challenges transcend party lines. A prime example is Social Security, a program whose fate could be significantly influenced by the election’s outcome.

Social Security Benefits Could Be Affected by the Outcome of the 2024 Election

A primary concern is the impending funding deficit of the Social Security Old Age and Survivors Insurance (OASI) Trust Fund. Predictions suggest that the fund may be depleted within the next decade. If this occurs, payroll taxes would only fund approximately 77% of the current benefits, leading to substantial reductions for retirees.

A recent report by the Committee for a Responsible Federal Budget highlighted the severity of this issue. By 2033, when the OASI fund is projected to be insolvent, a typical dual-income couple entering retirement could face a yearly reduction of $17,400. For single-income families, this cut could amount to $13,100 annually.

Social Security Benefits Could Be Affected by the Outcome of the 2024

This looming crisis has thrust Social Security into the limelight of policy discussions as the 2024 election approaches. Proposals from various candidates range from broad cuts to privatization to payroll tax hikes.

A survey by AARP, focusing on 1,200 probable voters in competitive Congressional districts, revealed that voters aged 50 and above could be the pivotal demographic in 2024. This age group, which is notably motivated to vote, is anticipated to dominate in key districts.

Prominent presidential candidates have already presented their strategies for Social Security

• President Joe Biden, aiming for re-election, has introduced a 4-point plan which includes:
  • Taxing earned income over $400,000, exempting wages between $160,200 and $400,000.
  • Modifying the formula for annual Social Security cost-of-living adjustments (COLAs) to be based on the Consumer Price Index for the Elderly (CPI-E) instead of the current CPI-W.
  • Increasing the primary insurance amount (PIA) that sets the Social Security benefit amount.
  • Boosting the special minimum benefit for lifetime lower-wage earners to 125% of the federal poverty level.
• Former President Donald Trump, leading the Republican nomination race, has firmly stated his opposition to Social Security benefit cuts.
• Florida Gov. Ron DeSantis, another Republican contender, suggests reducing benefits for the younger generation while preserving them for current and imminent beneficiaries.
• Former Vice President Mike Pence advocates for the privatization of Social Security, allowing younger citizens to divert a portion of their Social Security deductions into private savings.

• Former South Carolina Gov. Nikki Haley proposes elevating the full retirement age for those currently in their 20s and capping Social Security and Medicare benefits for affluent individuals.

The future of Social Security is undeniably a pivotal issue in the upcoming election, and the decisions made will have lasting implications for generations of Americans.