January brings with it a lot of uncertainty and changes. Imagine relying on a monthly check to cover the necessities of life, from food to medical.

And then you are told that this money would be reduced in the near future! This is the reality that millions of Social Security recipients in the United States face, and these programs are literally needed.

This is where President-elect Donald Trump comes in, who, while not yet taking office, has presented a proposal that might reshape the system.

Who benefits from Social Security?

Last November 2024, about 52 million seniors received a Social Security payment worth $1,900. Although it is not a significant number of money, it has proven to be a critical source of income for all former employees in this country.

Since 2002, between 80 and 90% of Gallup poll respondents have acknowledged that they rely on Social Security to make ends meet each month. However, despite its importance to millions of users, Social Security is experiencing major issues that must be addressed by new leaders to ensure the program’s stability.

What is happening with Social Security?

As previously said, it has served as a foundation for millions of Americans since its inception in 1935. However, the system is currently on the verge of collapse, with the 2024 trustee report predicting that these funds for old-age and survivors insurance (OASI) will run out in 2033.

This would result in a benefits reduction of up to 21%. if appropriate actions are not implemented immediately!

What are the reasons behind it?

A financial imbalance that has grown like a snowball for nearly four decades!The most recent assessment predicts a 23.2 trillion dollar deficit over the next 75 years, and while this reality is not new, what is disturbing is the lack of political commitment to execute feasible solutions, as no one has yet committed to fix this problem.

It is important to note that the depletion of OASI asset reserves does not imply that Social Security is bankrupt or about to disappear, but rather that it is not sustainable at this moment.

Trump and his controversial proposal:

In the midst of this landscape, newly elected President Donald Trump has made certain remarks that have stirred much debate.

Trump declared in Truth Social that “retirees should not pay Social Security taxes,” and while many people were encouraged by his words, many professionals and legislators raised worry.

According to analysts, eliminating SSA taxes could increase the monthly expenses of nearly half of the beneficiaries, but it would also create a significant fiscal gap that should be considered,

As the funds could only collect 944 billion dollars between 2024 and 2033 (the year in which the reserves are expected to be depleted), and, of course, eliminating this would cause the pension funds to be depleted much sooner.

According to specialists in the field, this could result in tax hikes for other sectors of the population in order to compensate for the loss and mitigate its consequences by seeking for a “substitute”.

Does this plan have consequences?

We already know that Trump wants to eliminate taxes and that no one likes having their benefits taxed, but this income is necessary for Social Security (which is only fed by the payroll tax on labor income, income from active reserves, and taxes on Social Security benefits), and Social Security is currently spending more than it collects; with this proposed plan, it would significantly increase expenses while collecting none.

What is needed to carry out Trump’s plan?

Trump needs 60 votes in the Senate to change the Social Security Act, which is improbable since even if he gets all of the Republican senators to vote for him, he still needs seven Democratic senators to vote with him.

So, while the future of Social Security hangs in the balance, what is at stake is not just a government program, but the livelihoods of millions of Americans, which means that these decisions will not be made lightly, but will be thoroughly debated in Congress to find the best solution for everyone (and our future!).

Also See : 2024 Back Pay – What No One Told You About the Social Security Fairness Act and How It Affects Your Wallet