A lot is at stake in the next presidential election, but one of the most important issues may be flying under the radar: The future of Social Security.
Social Security is one of the most popular entitlement programs in U.S. history, but it’s in trouble. If no action is taken, its trust fund could run short, necessitating a major benefits cut and devastating retirees who rely on the program. The program’s trustees have been warning of this possible outcome for a long time, but while lawmakers have tried to find solutions, efforts at reform have thus far failed.
Soon, however, kicking the can down the road will no longer be possible and politicians will be forced into action. And if big changes are made for the first time since the Social Security Amendments of 1983, the president will likely have a major impact on what those changes are.
Hard as it is to believe, that means that after the 2020 election, the fate of the program could be in the hands of President Donald Trump or presumptive Democratic nominee Joe Biden.
Why the election matters so much
While the most recent trustee’s report indicated Social Security’s trust fund reserves wouldn’t be depleted until 2035, it didn’t take into account the financial consequences of the coronavirus pandemic. Because the impact of crisis could damage multiple funding sources for Social Security, some estimates suggest the program could be out of cash by 2028.
This doesn’t just mean that the problem could potentially fall into Biden’s lap as his second term finishes up around the time the money runs dry (if he were to win the next two elections). The reality is that action should be taken well before the money actually runs out because any potential fixes only get costlier and more difficult the longer lawmakers delay.
Because swift solutions are necessary as the program’s finances get worse, there’s a very good chance key decisions will need be made over the next four to five years by whomever is in charge.
