Biden Has Withdrawn: What It Could Mean for Your Social Security
President Joe Biden withdrew from his reelection bid, raising questions about what happens next. One of Biden’s signature proposals was increasing taxes on those earning $400,000 or more to expand Social Security benefits for the elderly, people with disabilities, and low-income seniors.
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In addition, Social Security is set to reach a breaking point in 2033, when 79% of benefits will be payable, said Janie Mackenzie, a former political communications manager.
“With retirees making up a large portion of the voting bloc in the U.S., it makes strategic sense to remain neutral while attempting to court these voters,” Mackenzie said. “However, while the candidates state they have no plans to touch the funds, they also do not seem to have a cohesive plan for how to stave off bankruptcy and disaster in less than a decade.”
GOBanking Rates examined the possible election outcomes to determine what it would look like for your Social Security now that Biden has stepped down.
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Your Social Security
Retirees won’t see any changes to their current Social Security benefits in the short term.
Social Security is a federal program. The funding of benefits and program operations will continue as usual regardless of who replaces Biden in this year’s presidential election.
However, the election of a new President coupled with partisan control of Congress could potentially influence future Social Security policies, particularly when it comes to program solvency, benefit levels, and eligibility requirements.
Where Democrats Stand
The Democratic National Committee (DNC) upheld Biden’s position in their 2024 platform and promised to “stand firm to protect Social Security and expand benefits…by making the wealthy pay their fair share of taxes.”
A new presidential nominee will broadly agree with the party platform but may have different ideas about how to work with Congress to achieve solvency and secure the future of Social Security, Mackenzie said.
Biden endorsed Vice President Kamala Harris as his successor in the presidential election. Harris could continue many of his policies. As a former U.S. Senator from California, Harris advocated for Social Security expansion.
“Once again, the agenda will depend on the replacement nominee,” Mackenzie said. “However, I do believe both parties will be hard-pressed to avoid increasing the age of retirement over the next five years.”
Where Republicans Stand
Conservative critics said the Democrats’ proposal would “penalize work, saving and investment, negatively impacting the economy and reducing revenue collections.”
Former President Trump has pledged not to cut Social Security benefits, but he hasn’t proposed significant expansions.
As President, Trump introduced a payroll tax deferral in response to the global pandemic. The executive order allowed employers to defer the employee portion of Social Security payroll taxes in the final four months of the year. Trump has since suggested making the payroll tax deferral permanent. However, critics said the proposal would impact the long-term funding of Social Security.
Nevertheless, Trump has advocated for addressing issues of theft and bad management within federal entitlement programs.
“Cut waste, fraud and abuse everywhere that we can find it and there’s plenty of it,” Trump said in a video in January 2023. “But do not cut the benefits our seniors worked for and paid for their entire lives. Save Social Security, don’t destroy it.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Biden Has Withdrawn: What It Could Mean for Your Social Security