President Trump proposed a plan to replace the traditional federal social security program with a system in which workers could contribute to their accounts based on their income, and employers would make payments to them.
The Trump administration has been working on a proposal to shift social security benefits to a remote system. Donald Trump wants social security to be his private retirement plan. The project would save the federal government billions of dollars but could raise seniors’ living costs.
When people talk about Trump’s plans for retirement, they usually think about cutting benefits. But what if they raised them?
That’s exactly what Trump proposes in his plan to privatize social security. He wants to double the amount each retiree receives from their program, which means raising the average annual benefit to around $18,000 per year.
But what would that mean for your retirement? Let’s take a look.
Donald Trump believes that the Federal Government should stop providing Social Security benefits and instead pay retirees a set amount of money from its budget as it does with defense spending. He calls this plan “Social Security Privatization.” It would end up being a huge transfer of wealth from people who work to people who don’t.
Trump says he wants Social Security privatized.
Donald Trump has always said he wants to fix Social Security, and now the White House is proposing a proposal.
In an interview with Bloomberg, Trump said he wants to move the Social Security program into a private system that would allow younger workers to invest more money.
“I want to save Social Security,” Trump said. “We have to save it.”
Trump’s Social Security Advisory Board is leading this plan. The board comprises ten members, including economist and former Treasury Secretary Lawrence Summers, who also served as President Obama’s chief economic adviser.
According to Bloomberg, the proposal would allow workers to contribute to their retirement accounts and have those funds invested in the stock market.
The plan could save the federal government billions of dollars but also raise the cost of living for seniors.
While this would undoubtedly save the federal government money, it could also increase inflation.
“There are no guarantees that the plan will save money,” said Matthew Gardner, a senior fellow at the Institute for Policy Studies.
“If younger workers were paying for their retirement, there wouldn’t be a problem,” Gardner told Bloomberg. “But they aren’t, so there is.”
Trump says he wants to cut Social Security benefits.
Donald Trump, a billionaire, is reportedly considering privatizing Social Security. He would do this by allowing workers to invest a portion of their Social Security contributions into privately managed accounts, which would be invested in stocks, bonds, and other securities.
The Social Security Administration estimates that moving to a private system would add $2.6 trillion to the federal budget deficit over ten years.
But, in a separate report, the Social Security Board of Trustees estimates that the Social Security Trust Fund will be depleted in 2034. At that point, the program will no longer be able to pay full benefits.
The problem with the Trump proposal is that it would only benefit a tiny fraction of Americans, and the rest of us would be left footing the bill.
In fact, according to the Tax Policy Center, under the Trump plan, the average senior would get about 50% less than they currently receive.
The bottom line is that Trump’s privatization scheme would hurt most of us, not help most.
Trump says he wants to privatize Medicare.
Donald Trump, a billionaire, is reportedly considering privatizing Social Security. He would do this by allowing workers to invest a portion of their Social Security contributions into privately managed accounts, which would be invested in stocks, bonds, and other securities.
The Social Security Administration estimates that moving to a private system would add $2.6 trillion to the federal budget deficit over ten years.
But, in a separate report, the Social Security Board of Trustees estimates that the Social Security Trust Fund will be depleted in 2034. At that point, the program will no longer be able to pay full benefits.
The problem with the Trump proposal is that it would only benefit a tiny fraction of Americans, and the rest of us would be left footing the bill.
In fact, according to the Tax Policy Center, under the Trump plan, the average senior would get about 50% less than they currently receive.
The bottom line is that Trump’s privatization scheme would hurt most of us, not help most.
Trump is a liar.
Donald Trump wants you to believe he’s a great businessman.
He’s not.
And if you think he will change his ways after being president, you’re kidding yourself.
There’s no way to make this point any more clearly than to compare the tax returns from his presidential campaign with his taxes from 2005-2015.
Frequently asked Questions about Trump’s Wants Social Security.
Q: Does Trump want to abolish social security?
A: No, he has just said it is not popular. He says if the public gets involved, the government can save it. But he has been talking about this for years and doing nothing.
Q: Why do we need social security?
A: You should read the history of it. People worked their whole lives and paid into social security, which was there when they needed it. Now they want to take away their money.
Q: What’s your opinion about Trump?
A: He’s a racist and a bigot.
Q: How do you feel about Trump’s chances?
A: I’m not taking any bets on the election. I will only say that I believe Hillary Clinton will win and that I am happy with my decision not to vote for Trump.
Top myths about Trump Wants Social Security.
- Trump wants to abolish Social Security.
- Trump wants to privatize Social Security.
- Trump wants to cut social programs and government jobs.
- Trump wants to take away Medicare.
Conclusion
As Trump becomes more and more unpopular, his position on Social Security will become less and less popular too.
Trump’s view of Social Security was revealed in a 2005 interview with CNBC. “I like Social Security. I mean, it’s a very important program,” he said.
However, in a 2015 interview with Fox News’s Sean Hannity, he said he would support privatizing the system. “I would do it immediately. I would cut the benefits by half. I would do it immediately. I would throw millions of people off,” he said.
