Social Security Updates : How the 2024 Election Could Impact Your Benefits

Social Security Updates : How the 2024 Election Could Impact Your Benefits.Amidst the heated political climate leading up to the 2024 U.S. presidential election, it’s crucial to remember that certain issues transcend party lines. Social Security is one such topic, and the election’s outcome could significantly influence its trajectory and the millions who rely on it.

Social Security Updates : How the 2024 Election Could Impact Your Benefits

A primary concern is the impending deficit in the Social Security Old Age and Survivors Insurance (OASI) Trust Fund. Predictions suggest that this fund will be depleted in roughly ten years. Once exhausted, payroll taxes will only sustain about 77% of the existing benefits, leading to substantial cuts for retirees.

A recent report from the Committee for a Responsible Federal Budget highlighted the severity of the situation. By 2033, when the OASI fund is likely insolvent, a typical dual-income couple entering retirement could see their annual benefits slashed by $17,400. Single-income families might experience a yearly reduction of $13,100.

Social Security Updates 2024

This looming crisis has thrust Social Security into the spotlight of 2024’s policy discussions. Proposals range from broad cuts to privatization to payroll tax hikes.

An AARP poll indicates that voters aged 50 and above will play a pivotal role in the 2024 election. These voters, who are particularly motivated to cast their ballots, will likely dominate in key districts.

Several top presidential contenders have already shared their Social Security strategies:

• President Joe Biden, running for re-election, has a 4-point plan:
  1. Tax incomes over $400,000, exempting earnings between $160,200 and $400,000. Currently, incomes above $160,200 aren’t taxed.
  2. Modify the formula for annual Social Security cost-of-living adjustments (COLAs). Instead of the CPI-W, Biden suggests using the CPI-E.
  3. Increase the primary insurance amount (PIA) that sets Social Security benefit amounts.
  4. Boost the minimum benefit for long-term low-wage earners to 125% of the federal poverty level.
• Former President Donald Trump, leading the Republican nomination race, has pledged not to reduce Social Security benefits. He emphasizes eliminating waste and fraud but preserving the benefits seniors have earned.
• Florida Gov. Ron DeSantis, another Republican contender, suggests reducing benefits for the younger generation while maintaining them for current or imminent Social Security beneficiaries.
• Former Vice President Mike Pence advocates for Social Security privatization, allowing younger citizens to divert some of their Social Security contributions into private savings accounts.
• Former South Carolina Gov. Nikki Haley recommends increasing the full retirement age for those currently in their 20s and capping Social Security and Medicare benefits for high earners.

The future of Social Security is undeniably a central issue in the 2024 election, with each candidate offering distinct visions for its reform and sustainability.