As the new year approaches, many are wondering what will happen in 2025 regarding Social Security under Donald Trump’s leadership. Initially, he has promised to protect this safety net for retirees. However, numerous experts warn about potential risks to the system if the incoming president implements the changes he has outlined for when he assumes office in January as the President-elect of the United States.
Millions of Americans retirees are watching Trump’s proposed Social Security changes
The possibility of modifying the Social Security system has millions of retirees on edge, anticipating the changes Donald Trump might introduce when he takes office at the start of 2025. One of the main updates he plans to implement is the elimination of certain taxes that fund Social Security.
This economic and social safety net, which serves as vital support for millions of Americans, is facing a growing deficit. Although Trump has not laid out specific measures to address the debt, he mentioned potential solutions during his campaign. These proposals, however, have not convinced most experts or beneficiaries of the program.
Some measures or “solutions” Trump plans to introduce
Trump has made it clear that he does not intend to cut benefits for retirees or increase the retirement age. But this raises a crucial question: how does he plan to control the Social Security deficit without affecting retirees? The answer remains unclear, but indications suggest he may target benefits currently received by immigrants.
Additionally, the incoming president has proposed eliminating the tax tied to Social Security. While this move could reduce the tax burden on retirees, some experts warn it could worsen the sustainability of the system. According to the Congressional Budget Office, such a change could render Social Security unsustainable by 2031, potentially forcing across-the-board benefit cuts of up to 30%.
Another fiscal proposal Trump aims to implement upon taking office is a tax reduction for individuals earning between $63,000 and $206,000 annually. However, this measure will not benefit retirees with lower incomes, as this group is already exempt from income taxes.
