3 Reasons Boomers Don’t Know If Trump or Harris Is Better for Retirement Plans
The next person in the White House will play a crucial role in implementing taxes or laws that can greatly affect boomers’ retirement benefits and income.
Find Out: What a Trump Presidency Could Mean for Social Security in 2025
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Retirement planning is tricky enough but when you add politics to the mix, and choosing between leaders like Vice President Kamala Harris and former President Donald Trump for the future of your finances becomes even murkier. Both figures represent starkly different political ideologies, and understanding how their policies and tax proposals will hit your 401(k) plans or pension plans is important when you’re breaking down your retirement budget.
No matter your age group in the United States, the political climate does seem to trickle down and affect your wallet. However, boomers, who are about to retire or already there, have added pressure to decide to ensure the longevity of their nest egg. Here are three big reasons baby boomers remain undecided voters.
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Trump vs. Harris: Social Security
Though Social Security is the bedrock of retirement income for millions of Americans, boomers are the ones who are currently collecting. Many economists predict Social Security’s downfall and even the Social Security Board of Trustees has the Social Security Trust Fund projected to become insolvent in 2035.
Both Trump and Harris have made contrasting statements about the program, but neither offers a clear long-term solution. However, there are significant differences in their tax proposals when it comes to Social Security.
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Trump’s Position: During his presidency, Trump repeatedly stated that he would protect Social Security, but he also floated ideas about payroll tax cuts, which fund the program, and typically stays vague about details. This left some boomers unsure if his proposals would weaken Social Security over time.
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Harris’ Position: Harris most aligns with President Joe Biden and his administration, and has supported expanding Social Security benefits and increasing taxes on wealthier Americans to fund it. She has claimed to want to strengthen it for the long haul by making millionaires and billionaires pay more in taxes, which probably indicates extending the Social Security payroll tax to higher incomes such as over $400,000.
This uncertainty around Social Security funding and sustainability makes it hard for boomers to feel confident in either candidate’s approach. On the one hand, Trump remains ambiguous on Social Security. Though he claims he won’t tax Social Security benefits, he hasn’t offered a plan or details on how he would ensure the program’s long-term solvency without doing so. Whereas Harris, when she was still a senator, co-sponsored the Social Security Expansion Act with Sen. Bernie Sanders in 2019. This was a bill proposing to extend the Social Security payroll tax to incomes over $250,000 a year.
You can see that people who are living off retirement income may have some tough choices to make. Not taxing Social Security may seem ideal for now but it could also deplete the fund within the next 10 years.
Learn More: Trump Wants To Eliminate Income Taxes: How Would That Impact You If You Are Retired?
Trump vs. Harris: Healthcare Costs and Medicare
Healthcare is another critical factor for boomers when planning their retirements, especially once they reach age 65. The cost of healthcare often consumes a large portion of a retiree’s income, and Medicare, the federal health insurance program, plays a pivotal role in managing these expenses. But what do the candidates say?
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Trump’s Approach: Trump promised to protect Medicare but also sought to repeal and replace the Affordable Care Act, which had expanded healthcare coverage for many. His stance on privatizing parts of Medicare also created unease for some retirees as he promises to once again protect something, but doesn’t offer the ways how.
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Harris’ Approach: Harris has advocated for strengthening and expanding Medicare access. She has stated about her time as vice president in the Biden administration, “We have allowed for the first time Medicare to negotiate drug prices on behalf of you, the American people…Donald Trump said he was going to allow Medicare to negotiate drug prices. He never did. We did.”
Both candidates’ positions on healthcare bring potential benefits and risks, leaving boomers in a quandary over which policy is truly better for their retirement needs. Ultimately, social or political views may have to sway their vote if healthcare coverage doesn’t.
Trump vs. Harris: Inflation vs. Cost of Living
A state of economic stability sure would be a nice change of pace for all generations, but especially seniors as they approach or enter retirement. Both Trump and Harris offer differing economic visions, but neither can fully guarantee long-term stability. Though that’s not a promise anyone can really make, there are plans you can put in place to protect it — here’s how Harris and Trump differ:
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Trump vs. economy: While Trump touted stock market growth and low unemployment during his presidency, many economists warned that his trade wars and deficit spending could lead to inflation, which would erode the purchasing power of retirees on fixed incomes. With rising costs on everything from housing to food, boomers may not want a candidate who cannot offer a stabilizing plan.
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Harris vs. economy: With Harris focusing on working-class Americans she supports policies aimed at reducing income inequality and stabilizing the middle class. However, concerns about inflation under current economic policies, including massive government spending, make it difficult for boomers to know whether Harris’ vision will protect their financial security in the long term or their retirement plan.
Retirees are particularly vulnerable to inflation, as rising costs of living can quickly deplete savings as well as stifle a fixed income. The uncertainty around which leader would manage inflation better complicates their decisions.
Final Take To GO
The bottom line is that boomers are navigating a complex set of challenges as they prepare for retirement, and the political landscape offers a more straightforward map. Whether it’s concerns over Social Security, healthcare costs or economic stability, the choice between Donald Trump and Kamala Harris is fraught with uncertainty for many people of retirement age. As boomers have become the elder generation, deciding who to vote for may also boil down to who they think will take care of their retirement, but also the plans of those behind them.
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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