Former President Donald Trump and Vice President Kamala Harris are shown on screen during a debate watch party at the Cameo Art House Theatre in Fayetteville, North Carolina, Sept. 10, 2024.
Allison Joyce | Bloomberg | Getty Images
With the Social Security Administration facing a looming funding crisis over the next decade, it’s clear that the next U.S. president — either Democratic candidate Kamala Harris or Republican candidate Donald Trump — is poised to inherit a Social Security dilemma.
Almost 68 million Americans receive Social Security payments every month. The benefits support seniors in their retirement, disabled Americans and survivors of beneficiaries, but the future of the Social Security Administration has been in jeopardy for years.
More than 11,200 Americans are now turning 65 every day. As more retirees start to claim Social Security, there are not enough workers contributing to the program to make up for that increase in benefit payments.
When such a shortfall happens, Social Security turns to its trust funds — money that is set aside to help pay for benefits and other administrative costs.
But the trust fund Social Security relies on to pay retirement benefits is projected to be depleted in 2033. At that time, just 79% of benefits may be payable, according to the program’s trustees.
The average retired worker would see about a $403 cut to their current average monthly benefit of $1,920.
Most Americans rank Social Security as “one of the top” or a “very important” issue that will help determine how they vote in November, a recent CNBC poll found.
Both presidential candidates — former president Trump and Vice President Harris — have vowed to protect Social Security benefits through their campaign platforms.
But restoring the program’s solvency will require changes — benefit cuts, tax increases or a combination of both. Yet some experts say the candidates’ discussions have thus far avoided specific details on how to address that shortfall.
“We’re not seeing anyone step up and say, ‘In nine years, our main retirement program is looking at the trust of being insolvent, and that could lead to roughly a 20% benefit cut across the board of everybody,” said Jason Fichtner, chief economist at the Bipartisan Policy Center and executive director of the Alliance for Lifetime Income’s Retirement Income Institute.
Trump promises no taxes on Social Security benefits
Republican presidential nominee and former U.S. President Donald Trump speaks during a rally in Coachella, California, U.S., October 12, 2024.
Mike Blake | Reuters
On the campaign trail, Trump has touted an idea aimed at letting retirees keep more of their Social Security checks — ending taxes on benefits.
“Seniors should not pay tax on Social Security,” Trump wrote on July 31 in all capital letters on social media platform Truth Social.
A recent ABC News/Ipsos poll found 85% of voters support the idea.