In celebration of its 89th promulgation year, Social Security stands at a tricky crossroad full of unprecedented hurdles. These hurdles have inevitably catapulted the program to the epicenter of the upcoming presidential elections. Candidates are in a tough race on how to maintain and possibly transform this bedrock of American welfare policy.
The Social Security Board of Trustees in their most recent update, has drawn a rather gloom-ridden image; The paired trust funds of the program are anticipated to run out by the year 2035. Subsequently, the program’s capacity to fulfill around 83% of the scheduled benefits is throwing beneficiaries and future recipients into a worrisome state.
This apparent deficit has spurred a multitude of reform ideas among presidential hopefuls. Over the past year, candidates have suggested an array of strategic plans to counter Social Security’s financial predicaments. Generally, these propositions are categorized into two main sections: augmenting revenue via increased taxes or curtailing expenditures by reducing benefits.
Nevertheless, these prospective solutions are faced with noteworthy public opposition. A poll conducted by The Associated Press in April 2023 revealed that a staggering 79% of Americans objected to any reduction to Social Security benefits. Surprisingly, the same poll discovered that 75% of the participants were against any proposed increase to the program’s current qualification age from 67 to 70.
These contrasting strategies mirror a wider generational gap in perceptions toward Social Security. Millennials, Generation Z, and Generation X demonstrated higher likelihood than the Baby Boomers to believe that Social Security demands reforms. A recent poll on behalf of Newsweek, showed that 76% of millennials, 56% of Gen Z, and 69% of Gen X were strong proponents of reform, as opposed to 50% of Boomers.
Additionally, an intriguing 52% of millennials firmly believe that the program isn’t receiving adequate tax payments to sustain retiree benefits, a perspective less popular among other generational demographics. This sentiment is particularly poignant among elderly citizens, many grappling with the progressive dilution of their Social Security benefits’ value.
Based on an analysis by The Senior Citizens League, Social Security benefits have lost approximately 20% of their purchasing power since 2010. For those who hung up their working boots that year, this represents an increased financial need of about $370 monthly, or a yearly extra of $4,440, just to uphold the same standard of living they enjoyed upon retirement.
The discourse around Social Security’s future holds high stakes primarily for at-risk communities, which heavily depend on the program. For a great number of Black, Hispanic, and Native American senior citizens, Social Security is an essential support system.
The pandemic added an extra layer of hardship on older Black and Latino employees, who experienced elevated unemployment rates compared to their white counterparts. Compelling evidence suggests that numerous of these workers may unavoidably be compelled into premature retirement, facing considerable hurdles such as lower Social Security benefits, sketchy savings and interruptions in employer-provided healthcare—hardships that will disproportionately impact nonwhite workers.
In addition, the racial wealth gap in the United States connotes that communities of color often have fewer retirement savings and more dependency on Social Security. Seniors identifying as LGBTQ+ also face distinct challenges. Despite recent legal triumphs, many have lived through lifelong prejudice that affected their earnings and capacity to save for retirement.
A 2022 survey by AARP reported LGBTQ adults expressed substantial uncertainties about their financial security upon retirement, with a gripping 85% of respondents worried about having adequate income or savings. Heightened levels of concern were reported by those aged 45 to 54, as well as Black, transgender, and nonbinary participants.
In any given swing state, such as Arizona, Social Security is indeed a crucial issue in the 2024 election cycle. Even in the face of significant political transitions, like the shocking event of Biden’s stepping out of the race and the assassination attempt on former President Trump, the program still holds the lion’s share of voter concerns.
A recent Arizona AARP survey showed that 78% of voters over the age of 50 consider candidates’ stands on Social Security while making their voting decisions, with an intense 86% of the group being ‘extremely motivated’ to partake in the election.
Political commentator Paul Cummings states, ‘These numbers should serve as a signal to any candidate trying to win in Arizona this election year – pledging to safeguard Social Security and Medicare is a winning strategy. It’s evident Biden and his party missed the mark on this one, letting their focus falter.’
As the election edges nearer, the issue of Social Security reform is increasingly significant in the campaign, with consequences that could affect the financial well-being of millions of Americans. How candidates navigate this could well set the course for not just the election’s outcome but the future of our nation’s social protection mechanisms.