Social Security Faces Threats Amid Tax Cut Proposals

Social Security is a vital source of income for nearly 90% of retirees, yet its financial stability is under threat with a projected depletion of the Old-Age and Survivors Insurance Trust Fund by 2033. President-elect Donald Trump's proposal to cut taxes on Social Security benefits could temporarily increase payouts for baby boomers but risks exacerbating the fund's depletion, potentially leading to benefit cuts for future retirees. Many Americans regret early retirement decisions and premature claims on Social Security, which can result in reduced lifetime benefits. Concerns about Trump's plans have prompted some, like Jessica H., to reconsider their retirement timing due to fears of reduced future benefits. The Social Security system's sustainability is further challenged by long-standing funding deficits, which have been growing for decades. Without congressional action, significant benefit reductions could impact younger generations and low-income retirees.