Social Security: The 2016 Presidential Candidates’ Positions

The future of Social Security — whether benefits will see a reduction or an increase, as well as how the system is funded — is an issue that touches every corner of American society. Social Security is nearing a tipping point; it is projected that by 2034 the program will not be able to fulfill 100 percent of its promised payments if the current model goes unchanged.

The next U.S. president could impact the livelihood of current and future retirees by making fundamental changes to the current Social Security program.

With an ever-narrowing field of candidates in the 2016 presidential election, now is the time to take a look at each candidate’s position on how to fix the nation’s retirement-income program.

Social Security, Presidential Candidates And You

Social Security is the primary source of retirement income for most Americans, with one-third of retirees basically having no other income besides the government-run program. For the average retiree, more than half of their retirement income comes from Social Security.

If the system doesn’t change soon, millions of senior citizens will be unable to afford basic necessities such as housing, healthcare and food in retirement. The pool of presidential candidates knows this, but what solutions to they propose?

Hillary Clinton on Social Security: No Privatization

While Mrs. Clinton vows to defend and expand Social Security, she also opposes privatizing the system and allowing Social Security funds to be reinvested by individuals on Wall Street.

Clinton supports:

• Expanding Social Security benefits to widows and women
• Increasing Social Security credits for people raising children or providing family caregiving
• Funding the program by raising taxes above the current Social Security taxable wage base (effectively asking the wealthiest Americans to pay more)

Clinton opposes:

• Cuts to cost of living increases in Social Security
• Raising the full retirement age of Social Security
• Reduction of benefits or tax increases; she opposes middle-class Americans footing the bill

Bernie Sanders on Social Security: Retiring with Dignity

Sen. Sanders recently proposed a bill setting forth his strategy to protect the future of Social Security.  Objecting proposed cuts to Social Security, Sen. Sanders says the retirement-income program should be expanded to “make sure every American can retire with dignity.”

Sanders supports:

• Eliminating the payroll tax cap on all income above $250,000
• Levying an additional 6.2 percent tax on unearned household income above $250,000
• Increasing Social Security benefits for most recipients by about $65 a month

Sanders opposes:

• Allowing the wealthiest Americans to avoid paying a fair share
• Reducing benefits of the program
• Enabling the largest earners of capital gains income to avoid paying some of those earnings into the social security system

Donald Trump on Social Security: Making Good on the Deal

Mr. Trump approaches Social Security like a businessman; rather than viewing the system as an entitlement, he views it as a deal the government made with U.S. citizens. Mr. Trump insists that ensuring Social Security’s future is crucial because people have paid into the system for decades. Making good on those benefits is not entitlement, but simply honoring an agreement.

Trump supports:

• Generating more money for the program by repositioning taxes and funds going to foreign countries for aid and other causes
• Wealthy individuals voluntarily declining Social Security benefits
• Eliminating “waste, fraud and abuse” in the Social Security system

Trump opposes:

• Making significant cuts to Social Security benefits
• Increasing the full retirement age
• Government reinvestment of Social Security funds

Ted Cruz on Social Security: It Needs Reform

Sen. Cruz has criticized Social Security as an entitlement program that needs to be modernized and cut back.  At the same time, he also recognizes the system’s place in society and how heavily seniors today depend on it.

Cruz supports:

• Lowering Social Security expenditures and benefits
• Gradually raising the age of retirement
• Taxpayers using more personal savings for retirement, rather than a government program

Cruz opposes:

• Increasing taxes to fund Social Security
• Changing the Social Security benefits for those who already receive it
• Allowing Social Security to grow at a rate greater than inflation

John Kasich on Social Security: Make the System Healthy Again

Gov. Kasich has been discussing his views on Social Security for decades. He acknowledges the declining fiscal health of Social Security and insists any changes to Social Security need to be viewed as part of a balanced budget framework.

Kasich supports:

• Raising the full retirement age under Social Security
• Less benefits for high-income seniors, implying he supports some type of means testing for benefits
• Privatizing some portion of retirement savings

Kasich opposes:

• Raising taxes to pay for retirement benefits
• Basing the program’s index on wages and prices
• Taking away Social Security benefits from those already receiving them

Do You Have Clients In or Approaching Retirement?

The American College of Financial Services helps financial advisors deliver the most value to their clients by offering a variety of advanced professional designations, such as the RICP^®.

Download our free guide on becoming a successful retirement planner for more information on helping your clients secure their livelihood now and into the future.