6 Social Security Implications If Trump Is Reelected

Millions of people rely on Social Security as a key source of income, but the program's future is already uncertain. And if President Trump wins again in November, it could potentially spell trouble for the program. Here are six things that might happen to Social Security if our current president is reelected.

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Right now, workers are subject to payroll taxes on up to $137,700 of income for Social Security purposes. But the president is proposing a permanent payroll tax cut that would do away with that tax. The result would be higher paychecks for workers, but Social Security would lose its key source of revenue, creating a dire financial situation.

ALSO READ: Here's How Much President Trump's Payroll Tax Break Could Save Americans

In August, Trump signed an executive order seeking to defer employee payroll taxes from September through December of 2020 into 2021. This would allow workers to collect higher paychecks in the near term, and it would potentially serve as a means of relief during the COVID-19 pandemic. But the president has also said that if reelected, he'll seek to have those deferred payroll taxes forgiven, which means Social Security will be short a lot of revenue.

In the past, Trump has suggested means-testing as a way of saving Social Security money. Under this system, higher earners in retirement would receive a lower Social Security benefit, or perhaps no benefit at all. The concept actually already exists in the context of personal bankruptcies, but it would certainly be a major change to a program that's historically provided benefits even for the wealthy, who may not need them but who paid into the program during their working years.

At one point, Trump talked about partially privatizing Social Security to give workers some amount of control over how their benefits are invested. He's since backed off that idea, but we don't know if it will somehow resurface.

The $16,728 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,728 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

Social Security Disability Income (SSDI) recipients may need to certify their need for benefits more frequently under a new Trump proposal. Specifically, his plan seeks to create a new category for applicants called "medical improvement likely," which would result in a medical review every two years. If this plan goes through, some SSDI recipients could risk losing their benefits.

ALSO READ: Social Security Disability: Everything You Need to Know

The president has been surprisingly silent on Social Security in the course of recent campaigning. Therefore, it could be the case that, if reelected, he simply sits back and lets the program's financial woes escalate, thereby putting future beneficiaries at risk of receiving lower benefits once Social Security's trust funds run out of money.

Of course, we don't know who will get elected come November, nor exactly how Social Security will fare in light of the election results. But one thing we do know is that the program is facing financial challenges that will need to be addressed one way or another. Hopefully, whoever gets elected will manage to salvage Social Security and avoid benefit cuts.

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