President Trump has suggested plans for Social Security that, while appearing beneficial, may inadvertently increase the program's risk of insolvency. Experts warn that without significant reforms, Social Security will face severe financial challenges in the next decade, as payroll tax revenues decline due to an aging workforce. Many retirees currently rely heavily on Social Security, with median savings alarmingly low among seniors. Trump's commitment to protect Social Security and eliminate taxes on benefits may complicate the program's sustainability, ultimately risking future benefit cuts for current and future retirees.
Many seniors enter retirement with minimal funds socked away. The Federal Reserve puts median savings among 65- to 74-year-olds at just $200,000 as of 2022.
Social Security will lose out on critical payroll tax revenue as more older workers exit the labor force, which is essential to keep the program financially viable.
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