With former President Donald Trump’s reelection in the 2024 presidential election, 2025 and beyond may bring significant changes to the lives of retirees, depending upon how many of Trump’s campaign promises come true.
Be Aware: Suze Orman: 2025 Social Security Changes You Need To Know About and Their Impacts
Learn More: 5 Subtly Genius Moves All Wealthy People Make With Their Money
For one soon-to-be retiree, Jessica H., a 65-year-old teacher based in Georgia, concerns she has about the Trump administration’s plans are making her reconsider when she takes Social Security.
Jessica works “at will” teaching seminars, editing manuscripts and other work she can do from home on her own schedule. So, while retirement for her does not mean stopping work completely, she had planned to take Social Security in five years, at age 70, but now she’s rethinking that plan.
Grappling With a Potentially Reduced Amount
One of Jessica’s big concerns, based on reporting and information from sources she trusts like The New York Times and the Center for American Progress, is that Trump’s proposals related to Social Security, such as cutting payroll taxes that fund the program and doing away with income taxes, could put the program’s finances on shaky grounds.
“So my concern right now is not necessarily that if I wait till 70, I won’t have the money, that it’ll be gone; my concern is that it’ll be lessened.”
She fears that the Social Security fund will be significantly depleted, leaving her and others her age with more like 70% of what they put into it, which she called “theft.”
Moreover, as someone who regularly works with college students, she said, “I’m concerned about people who come after me, that they’re not going to have this social safety net.”
Find Out: Social Security Benefits Might Be Harder To Qualify for in the Future: Here’s What You Need To Know
What Could Undermine Social Security
Jessica doesn’t like the feeling of the safety net she envisioned being pulled out from under her. “Until now I, and I assume most of us, were under the impression that [Social Security] was solid, that we would get what we were told we’d get. And now there’s a sense of instability. So how do I game that?”
Either way, she faces a dilemma, because if she takes Social Security now, she will get significantly less than she would at age 70. But if she takes it at age 70, she might also be getting less, depending on what changes the Trump administration is able to effect.
Additionally, she worries about Trump’s general desire to get involved with oversight that has traditionally been kept separate, such as presidents’ hands-off approach to the Federal Reserve Bank, which sets economic policies that affect such things as inflation and interest rates. Trump tried unsuccessfully in his first term as president to control or influence the Federal Reserve Bank’s decision making and has suggested he will continue to in his second, when he told reporters that presidents should have “at least a say” over it, according to The Atlantic.
Jessica has sought (and will continue to seek) opinions from respected sources and friends, finding varying information, paying close attention to warnings from policy experts who fear Trump’s policies could destabilize Social Security’s funds.
The Next Steps
The immediate next step for Jessica is to have a conversation with her financial advisor. “I’m going to ask her ‘Give me three good reasons why I shouldn’t take it now, give me three good reasons.’ She’s with an established financial institution and she handles our portfolio and I trust her.”
Then she needs to look into what the process is if she takes Social Security early.
While Jessica doesn’t have plans to stop working altogether, taking a reduced amount of Social Security income would make it more likely that she would need to keep doing so, and perhaps for longer than she planned.
She’s considered that she might try investing any money she gets from Social Security as a hedge against losses, which goes against the ethos of her family of origin.
“I grew up in a Roosevelt worshiping household, so wow, this puts me in a weird situation. Then I’m doing what the Trump administration is doing, which is privatizing money.”
While she recognized there is privilege in having the choice of when to take Social Security, it still feels scary, and she has entered a state she calls “watchful waiting” and hopes that she and her husband can count on the Social Security income he already receives and which she has planned for.
More From GOBankingRates
- 7 Winter Clothing Items You Should Buy at Costco Now
- 7 SUVs To Avoid Buying in 2025
- Here's How To Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
- 7 Reasons You Should Consider a Financial Advisor -- Even If You're Not Wealthy
This article originally appeared on GOBankingRates.com: I’m Close to Retirement: Why I May Take Social Security Early Due to the Election
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
