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That would boost the net income actually received by retirees.
But that proposal comes at a cost.
That raises the core question for many retirees: How does the government prevent Social Securitys looming insolvency?
So far, weve only heardvague promises and reassurancesthat there wont be any cuts.
But if no real action is taken, a cut is assured.
This uncertainty is making retirees nervous, and many are rushing to file for Social Security now.
I hear retirees say things like, Im going to get what I can while I can.'
That leads many retirees toregret taking Social Security benefits early, and settling for lower benefit payments for life.
Without a clear plan to secure Social Securitys future, this anxiety is only going to get worse.
But what concrete changes might Trump implement to fix (at least prolong) Social Securitys solvency?
Brock refers to thecap on paying FICA taxes, which fund Social Security.
Higher-income taxpayers pay FICA taxes on their first $168,600 in 2024, but not above it.
This reflects the maximum benefit that theyre eligible to receive in retirement.
This could be implemented for individuals that earn over $1,000,000 annually.
Allow the program to invest in securities other than U.S. Treasuries.
A measured allocation to other types of investment-grade debt securities and, potentially,U.S.
equitieswould provide much stronger risk-adjusted returns for the program.
That would significantly reduce the possibility of future benefits payments depleting the programs reserves.
Its proven especially popular among real estate investors, who get to accelerate their depreciation deductions.
However, the Senate has yet to bring it to the floor for a vote.
It allows older adults to pass more assets to their heirs tax-free.
You cant count on any one tax policy becoming law.
