From former President Donald Trump’s proposals to cut taxes on older Americans to Vice President Kamala Harris’ plans to lower prescription drug prices, both candidates have big ideas on issues that could impact retirement in America.
Both of their campaign platforms emphasize that they will protect Social Security, the largest source of retirement income for most seniors. But there are a few key differences in what they will change in the program.
On health care, Harris and Trump have unveiled plans they say will protect Medicare and improve access to quality health care. They are also trying to convince voters they can reduce out-of-control drug prices.
This is in addition to their offerings regarding pensions and IRAs.
Here are the candidates’ positions on the major issues that could impact your golden years.
Harris: Protect Social Security and increase payroll taxes on high earners
Consistent with the platform she and now-President Joe Biden ran in 2020, Harris is focused on defending Social Security from “attacks” from the Republican Party, particularly any changes that would cut benefits or increase the retirement age . The platform notes that Trump once called for raising the retirement age from 67 to 70 (a position he no longer supports).
To ensure that Social Security can continue to pay planned benefits in the future, Harris calls for “making millionaires and billionaires pay their fair share of taxes.” Social Security trust funds could run out of money in about a decade, and to avoid benefit cuts, lawmakers will have to enact policy changes to raise revenue. Raising taxes is one such potential solution.
Harris says she won’t raise taxes on those making less than $400,000, but depending on the composition of the next Congress, Democrats could consider raising payroll taxes on people above that threshold.
Trump: Eliminate Social Security taxes, keep benefits
Trump has proposed eliminating the federal income tax on Social Security benefits, which about 40% of recipients (people whose combined income exceeds $25,000) currently pay. Eliminating benefit taxes could free up money for older Americans who are struggling to meet the cost of living, but it would potentially increase the federal budget deficit by $1.6 trillion to $1.8 trillion, according to the Committee for a Responsible Federal Budget (CRFB). by 2035. non-partisan non-profit organization.
In addition to this proposal, Trump promises to keep the retirement age at 67 and does not promise any cuts to Social Security. But a new CRFB analysis shows Trump’s tax and immigration proposals could actually increase Social Security’s deficit, exacerbating a looming funding shortfall.
Harris: Support union pensions
Harris touts her accomplishments on pensions, including a crucial 2021 vote to pass the Butch Lewis Act, which was aimed at increasing the solvency of multiemployer pensions for union workers as part of the American Rescue Plan.
Her campaign says the legislation has saved $1 million in pensions, and she is committed to “seeing this effort through and preserving the pensions of millions of other union members.”
Trump: Cut taxes and limit inflation
The former president’s beef with older voters centers on his ability to control rising costs of living. At a recent rally in Reno, Nevada, Trump said older Americans are being “destroyed by fixed incomes due to inflation,” blaming government spending. Trump says he has a better record on inflation than Biden. However, economists are skeptical that his policies will lead to lower inflation than Harris’s.
In addition to cutting taxes on Social Security benefits, Trump wants to extend the 2017 income tax cut that lowered rates for most people, which he says will help Americans cope with higher prices. (Otherwise, many of these tax cuts would end in January 2026.)
He also supports eliminating “double taxation” for Americans living abroad, a proposal that would benefit those retiring abroad.
Harris: Fight for lower drug prices
Campaign ads supporting Harris frequently mention her accomplishments and plans to lower prescription drug costs.
Notably, the Biden administration capped insulin prices at $35 for millions of Americans. Recent Medicare drug negotiations have resulted in discounts being provided to millions of enrollees. Starting next year, under a provision of the Inflation Reduction Act, out-of-pocket prescription costs for Medicare Part D beneficiaries will be capped at $2,000 per year.
Harris pledges to expand and build on these initiatives, including supporting plans to speed up Medicare drug negotiations and apply insulin price caps to everyone.
Trump: Promote affordable health care for seniors
Trump’s campaign platform acknowledges that “health care and prescription drug costs are out of control.” He calls for protecting Medicare and improving seniors’ access to affordable health care.
“Republicans will increase transparency, promote choice and competition, and expand access to new affordable health care services and prescription drugs,” the platform says. Trump also has a history of signing legislation in 2017 aimed at expanding health care options for veterans.
What about retirement accounts?
Policies related to retirement accounts, including 401(k)s and IRAs (individual retirement accounts), are largely absent from candidates’ platforms, despite being more prominent in previous elections.
The White House’s 2025 budget, which has not been approved, includes two changes that will affect high earners and some wealthy Americans: 1) placing limits on large IRA accounts over $10 million and 2) preventing high earners from using the backdoor Roth IRA conversion.
In its policy notes, the administration argues that these tax advantages should be changed so they are not used as tax avoidance mechanisms for the wealthy.
Retirees and retirement savers may also be wondering how the election will affect the performance of their retirement account investments. While some stock market analysts say Trump’s economic plans, including deregulation and tax cuts, could boost economic growth and the stock market, there is no consensus on Wall Street and market forecasts are always uncertain.
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