With more than 67 million American retirees depending on monthly Social Security checks, changes to this system are on the way, causing fears among those who are about to retire. Alarm bells are ringing particularly for Gen Xers, as the Social Security trust fund is running out of money. If no actions are taken, later generations may not get all the promised benefits.
In the forthcoming elections, Social Security is set to take center stage; however, there are no strategies for resourcing it. Still, some retirees like Judy Drew from Georgia believe former President Donald Trump is up to the task of fixing it. Drew spoke with GOBankingRates about why she trusts Trump about Social Security and how hence Judy supports him.
The State of Social Security
The social security funding problem is not a new one. Already, the Social Security Board of Trustees has projected that by 2035, only 75% of scheduled benefits will be paid unless changes are made. The shortfall is mainly attributable to an aging population and lower fertility rates, which leads to fewer workers contributing to the fund.
According to the Social Security Administration, over the past 35 years, “there are about 3.3 workers for every benefit.” “From 2030 onward, this ratio will narrow down to only two workers supporting each beneficiary.”
This transition places immense pressure on the system; thus, individuals intending to retire within the next decade may face financial difficulties unless corrective measures are undertaken.
Trust in Trump’s Promises
Drew relies heavily on her monthly Social Security payment, just like many other retirees. She thinks that Trump is the best person to safeguard her financial future.
“I know Trump to be a man of his word; he will make sure that there are no taxes charged on Social Security,” she stated. “To me, every penny is important. If you do not have a pension scheme, a 401(k), or your home is not paid for by the time you are retiring, then you will be poor too.”
The elimination of taxing Social Security income has been a promise made by Trump, which sounds good to retirees living from hand to mouth and needing every dollar they earn. Drew imagines how this policy could turn around her fortunes completely.
Trump’s Business Background
Another thing that makes Drew trust Trump is that he has experience in business. In particular, Drew feels that Trump’s experience in business is another reason he should be trusted with the finances of this country, including Social Security. Starting with his family’s business being predominantly focused on real estate, he later transformed it into a real estate empire. Given Drew’s perception of him as a New York business mogul, he is convinced he has what it takes to handle difficult economic matters.
Drew said, “The only person who can fix this country using business sense is Trump.” “You may not like him personally, but consider your children’s future instead… Ours is gone; save the children; maybe later generations will find loans at an interest rate they can afford.” According to Drew, the financial skills possessed by Trump are vital for saving Social Security from extinction. To her mind, his competence in dealing with the intricacies of money management might help stabilize it for pensioners of tomorrow.
Concern for Future Generations
Drew sits back with an air of self-assurance regarding what President Trump can do for her age group. However, it’s the possible impact on younger Americans of Social Security’s financial issues that gets her more worried.
“Yes, I’m afraid about it, but Donald Trump will try his best for us,” she said. “However. My concern is regarding future generations because, unlike us who are nearing our end years, it’s our kids and grandkids who are least prepared to live beyond social life,” she said ironically.
As per Drew, a contribution shortage from employed people into courts will lead to the worst time in terms of finance during old age, perhaps preventing them from living comfortably as expected after having worked all their lives by helping them probabilistically gain knowledge depending on policies administered by President Trump.
Read more: Social Security: What is the Full Retirement Age (FRA) if you were born in 1960?
The Candidates on Social Security
The social security issue is a major topic in all campaigns by the two candidates as the elections near. In 2023, Vice President Kamala Harris assured that the 2020 budget would guarantee the survival of the system without raising taxes on people earning less than $400,000 annually or reducing benefits. On the other hand, Trump has been very vocal about his plan to protect social security without cutting benefits. His campaign stressed the removal of taxes on social security incomes and no change in the retirement age. It is for this reason that Drew and other retirees find Trump’s strategy appealing; they want immediate financial relief and safeguard against benefit cuts that may affect their monthly pension earnings.
Why Social Security is Running Out of Money
Demographics largely influence the fiscal troubles of Social Security. As people in society age and fewer babies are born, fewer employees are contributing to it while more retirees are taking benefits. Therefore, such a situation threatens the program from draining all its funds.
After 2030, Social Security claims that the worker-beneficiary ratio will be only two workers for every beneficiary, according to them. In essence, each employee will have to contribute a lot if he/she wants to enjoy equal benefits, which means it might prove impossible without wide-ranging changes.
