Social Security: Trump's Clawback Plan

The Yahoo Finance video discusses potential changes to Social Security under a second Trump administration. The core concern revolves around the program's long-term solvency and the need to address its funding gap. Trump has historically avoided directly addressing Social Security reforms, preferring to focus on economic growth as a solution. However, various proposals are being discussed, including adjustments to the full retirement age, benefit calculations, and cost-of-living adjustments (COLAs). Raising the retirement age would reduce payouts, while modifying benefit calculations could impact retirees' monthly income. The video highlights the potential impact of different COLA formulas. Currently, COLA is tied to the Consumer Price Index (CPI), but some propose using the Chained CPI, which typically results in lower adjustments. This change would save money but could significantly affect retirees' purchasing power over time. The video also mentions the possibility of means-testing benefits, which would limit or eliminate payments for higher-income individuals. However, such proposals face political challenges. Ultimately, the video emphasizes the uncertainty surrounding Social Security's future and the potential consequences of any reforms on current and future retirees. The discussion revolves around balancing the need to ensure the program's long-term viability with the impact on beneficiaries. find the original article here: https://finance.yahoo.com/video/trumps-big-social-security-changes-165932628.html