Most Americans are concerned about their finances in retirement. A recent GOBankingRates survey found that 26% of Americans believe that they will need to depend on Social Security entirely during retirement, 25% believe they will have minimal savings in retirement and a staggering 22% believe they will never be able to retire.
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While these statistics are alarming, the financial reality for those who plan to retire during President-elect Donald Trump’s next term might be better than expected, according to Grant Cardone, a private equity fund manager and real estate investor. Here are two reasons why Cardone believes Trump’s presidency will improve retirees’ finances.
No Social Security Taxes
Trump made several public statements pledging to repeal taxes on Social Security if he were to be elected president.
“I absolutely agree with his proposal,” said Cardone, who has sent a proposal to the Trump administration to implement a federal program, Make Americans Wealthy Again, which would teach financial basics to all Americans.
“I’ve already paid taxes on my income — why am I being taxed on my Social Security?”
Cardone explained that the taxes paid toward Social Security during our working years are essentially a loan to the government that we should get back when we retire.
“People at the max level, they’re going to pay in about $12,000 a year for 30 years, so you have somewhere under $400,000 invested there,” he said. “The government had that money to invest for somewhere between one and 30 years, and they didn’t do a good job with it.
“So here we are now where I’m going to pull my money — I finally need my money to retire,” Cardone continued. “The money shouldn’t be taxed, and that’s good for the elderly. [Trump] is going to do what he can to reduce taxes on Social Security to zero.”
Based on the current rates at which Social Security is taxed, the typical senior would save about $527 annually if taxes are eliminated.
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Easier Access to Home Equity
Currently, homeowners ages 62 and older have reached $14 trillion worth of equity in their homes, National Mortgage Professional reported. Cardone believes that Trump will take steps to make this equity easier for retirees to access.
“I think that there’s going to be other benefits that get rolled out for the elderly to to free up the equity they have in their homes,” Cardone said. “[This] is a tremendous resource that we could provide the elderly with. [They have] built equity in their homes for the last 20, 25, 30 years. I think he’s considering that with the help of the housing department.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
Survey methodology: GOBankingRates surveyed 999 Americans ages 18 and older from across the country between July 23 and July 29, 2024, asking 14 different questions: (1) How much savings do you feel a single person needs to retire rich?; (2) How much savings do you feel a couple needs to retire rich?; (3) How confident are you about retirement?; (4) How much money will you be able to pass down to your children/family?; (5) How would you rate your level of financial stress?; (6) Have you considered withdrawing from your retirement funds early due to financial struggles?; (7) How much money do you have in emergency savings?; (8) How much do you pay for housing every month, either for a mortgage or rent?; (9) Have you had to move in the past year due to the rising cost of living?; (10) What causes you the most financial stress?; (11) If you shop at Five Below, what are your must buys? (Select all that apply); (12) If you shop at Big Lots, what are your must buys? (Select all that apply); (13) Do you think Five Below has better deals than Dollar Tree?; and (14) Did you start shopping at any of these stores to save money in 2024? (Select all that apply). GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: 2 Reasons Trump’s Presidency Will Help Retirees’ Finances, According to Grant Cardone
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