As the presidential election nears, Social Security and Medicare are at the forefront of many American's minds. Americans’ top priority for the President and Congress is to address Social Security’s funding shortfalls to help people have a financially secure retirement, according to a study from the Transamerica Center for Retirement Studies.
This makes sense, considering the Social Security trust fund is projected to become insolvent in 2035. Medicare's hospital insurance benefits are expected to run out of money in 2036.
More than 66 million people in the United States receive health care coverage through Medicare. As of June 30, 2024 (the most-recently available data), nearly nine out of ten people age 65 and older were receiving a Social Security benefit. Social Security benefits represent about 30% of the income of people over age 65.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Here's what the upcoming election could mean for both Social Security and Medicare.
Harris on Social Security and Medicare
Harris strongly supports Social Security and opposes any plan that would reduce or cut Social Security benefits. In August, she wrote on Facebook that if elected President, she would work to “protect and expand” Social Security benefits, claiming they’ve “made the difference between poverty or peace of mind for millions of seniors, people with disabilities, and other beneficiaries.”
According to the official policy proposal, Vice President Harris is committed to strengthening and protecting Social Security and Medicare. For one, she plans on making corporations and the wealthiest Americans pay their fair share in taxes to keep Social Security and Medicare solvent in the long run.
Additionally, Harris will expand savings on prescription drugs for all Americans by President by extending Medicare’s $35 monthly cap on insulin and the $2,000 annual cap on prescription drugs, initially implemented by the Inflation Reduction Act, to all Americans, as well as accelerate Medicare drug price negotiations to cover more drugs and lower prices faster.
The Harris-Walz Administration will also build on the Butch Lewis Act and protect millions of union pensions.
Read our article, Harris' Stances on Social Security and Medicare, to learn more.
Trump on Social Security and Medicare
According to Trump’s campaign platform, the administration says it will “fight for and protect Social Security and Medicare with no cuts, including no changes to the retirement age.” Trump has also proposed cutting taxes on Social Security, but that could potentially cause more harm than good. Entirely exempting taxes on Social Security benefits could drive the program into insolvency even faster, according to the Committee for a Responsible Federal Budget.
While in office, Trump made no significant progress in remedying Social Security and Medicare's funding issues. Each of his yearly federal budgets proposed cuts in Social Security, Medicare and Medicaid, primarily in reduced payments to healthcare providers and hospitals.
Additionally, in October 2019, then-President Trump published the Executive Order on Protecting and Improving Medicare for Our Nation’s Seniors, which included an overhaul of the Medicare for All program.
Read our article, Trump's Stances on Social Security and Medicare, to learn more.
Impact of the election on Social Security and Medicare
Significant Medicare and Social Security changes are “unlikely without strong congressional support,” said Mark Friedlich (VP, US Government Affairs, Tax & Accounting North America at Wolters Kluwer).
“If Harris wins, expanding Social Security and Medicare benefits is possible but would likely face opposition in a divided Congress,” he said. “Significant cuts to Social Security and Medicare are unlikely if Trump wins, given his campaign promises. Some reforms to reduce ‘waste’ or ‘bad management’ might be proposed, but sweeping changes would face opposition."
Bottom line
Both candidates support Social Security and Medicare but have different approaches to protecting these programs. Harris plans to make corporations and the wealthiest Americans pay their fair share in taxes to keep Social Security and Medicare solvent in the long run, while Trump, on the other hand, has proposed cutting taxes on Social Security altogether.
However, Congressional gridlock could prevent major changes to these programs. The makeup of Congress will ultimately determine any changes to Social Security and Medicare, as significant reforms would need bipartisan support.
Related Content
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity StakeESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
Don’t Let Your Dreams Go Unfulfilled: Plan for Your Passion in RetirementFollow these three steps to ensure you are emotionally and financially prepared for your passion in retirement.
-
I Heard Tariffs Will Cost Families $2,800 This Year. I'm a Retiree on a Fixed Income. How Can I Prepare?We ask retirement planning experts what to do.
-
I'm an Estate Planning Attorney: These Are the Two Legal Documents Everyone Should HaveEvery adult should have a health care proxy and power of attorney — they save loved ones time, money and stress if a sudden illness or injury leaves you incapacitated.
-
Does Happiness Improve at Age 50? Maybe Not for EveryoneNew thinking about how happiness changes over our lifetimes shows that one group in particular gains the most contentment after age 50.
-
Six Big Beautiful Opportunities: Advisers' Guide to Tax and Client StrategiesHere are several ways financial professionals can help their clients maximize opportunities in the One Big Beautiful Bill Act, which extends key TCJA provisions, introduces increased deductions for people 65 and older and more.
-
How to Guard Against the New Generation of Fraud and Identity TheftIdentity Theft Fraud and identity theft are getting more sophisticated and harder to spot. Stay ahead of the scammers with our advice.
-
The Retirement Bucket Rule: Your Guide to Fear-Free SpendingForget market declines or rising inflation. With this strategy, you won’t have to worry about any of that during retirement.
-
Brace for Higher Health Costs in 2026: A Look at Projected Medicare PremiumsIn 2026, Medicare participants will pay more for their health care. Part B costs are expected to rise more than 10%. Here's what you can do.
