The 2024 elections bring distinct approaches from Kamala Harris and Donald Trump regarding Social Security reform. Kamala Harris aims to expand benefits, particularly for low-income earners and disabled individuals, through increased taxation on higher-income individuals by removing the Social Security income cap. Donald Trump, on the other hand, focuses on maintaining current benefit levels and exploring long-term financial reforms without increasing taxes.

A significant concern is the program’s sustainability, particularly for younger generations like Millennials, as they may face financial challenges in the future. With more retirees and longer life expectancies, Social Security could experience funding deficits. This could result in reduced benefits or the need for structural reforms, including increasing the retirement age or adjusting benefit calculations to ensure long-term solvency.

Kamala Harris emphasizes the need to modernize and expand Social Security benefits, particularly for vulnerable groups like low-income individuals and those with disabilities. Her proposal includes the elimination of the cap on earnings subject to Social Security taxes, meaning that high-income individuals would contribute more to the system. Harris also focuses on improving the cost-of-living adjustments (COLAs) to better reflect the actual living expenses of retirees. This expansion would provide significant relief for economically disadvantaged populations but would come at the expense of higher taxes for wealthier Americans.

Donald Trump, in contrast, stresses maintaining current benefits and ensuring the program’s sustainability without raising taxes. His approach avoids drastic changes to the program and seeks reforms to make it financially stable over time. While Trump has not explicitly detailed the exact reforms, his plan would likely involve efficiency improvements and potentially tapping into other government resources. His stance is more conservative, aiming to preserve Social Security in its current form for retirees without burdening future taxpayers.

For Millennials and future generations, the future of Social Security is a pressing issue. Current projections indicate that by 2033, the Social Security trust fund may become depleted, leading to a 21% reduction in benefits if no reforms are enacted.

This is particularly concerning as more people retire and life expectancy increases, putting further strain on the system. Younger workers may face higher taxes or reduced benefits unless structural reforms are made. Potential solutions include raising the retirement age, changing benefit formulas, or finding new funding sources to maintain the program’s solvency.

• Increased Retirement Age: One possible reform would involve raising the retirement age, reflecting longer life expectancies and delaying when individuals can claim full benefits.
• Adjusting Benefit Formulas: Reforms might also include recalculating benefits, particularly for high earners, to create a more balanced and sustainable system.
• Tax Reforms: Harris’ proposal to remove the cap on taxable income for Social Security is a key consideration, ensuring higher earners contribute more toward the system.