Election season is quickly approaching, and with that come issues that need to be addressed. Of course, a new American president will always bring changes.
Read: Should Trump Eliminate Income Taxes? Here’s What Tax Experts Say
Try This: 7 Reasons Future Retirees Should Consider a Financial Advisor
It is widely believed that Vice President Kamala Harris will be nominated as the Democratic candidate for the 2024 presidential election. With her presumed nomination, people may wonder how her stance on retirement will affect the future of Social Security and Medicare.
Should she be elected as president, Harris will expand on preexisting plans and provide further benefits to retirees. What might Harris’s proposed plans mean for you?
Earning passive income doesn’t need to be difficult. You can start this week.
Social Security
In regards to Social Security, many Americans are finding themselves concerned about the program’s future.
11,000 baby boomers are turning 65 each day, tapping into our Social Security funds at a fast rate. In 2023, the reserve stood at $2.9 trillion, and the government is spending more on Social Security than saving.
“Based on new projections, the reserve would be gone by 2035,” said AARP in an article.
The potential for Social Security funds to run out is a long-term issue and is not of immediate concern — but it still remains a concern for many Americans worried about the future.
Harris has supported the expansion and retention of the program, aiming to reform Social Security in the present day.
“Harris will likely build off of Biden’s efforts of expanding coverage,” said Aaron Cirksena, CEO of MDRN Capital, a retirement planning firm. “If elected, it is likely that she will push to expand Social Security to offer direct support for retirees and also protect the Affordable Care Act.”
Social Security: How Big Is Senator Lindsey Graham’s Social Security Check?
Medicare
Harris has historically taken an aggressive approach to change regarding Medicare. She aims to expand Medicare and potentially eliminate the need for private insurance.
“[Harris has] called for the abolition of employer-sponsored health insurance, and, at times, for the abolition of private health insurance in its entirety,” said Forbes.
Harris has been a long-standing advocate for Medicare for all, including supporting Bernie Sanders’s bill to eliminate private insurance entirely.
Over the years, Harris’s camp has gone back and forth on her Medicare stance. However, she still remains one of the more outspoken Democratic politicians when it comes to promoting government-led insurance programs.
What Harris’s Proposed Plans Might Mean for You
If elected, Harris would not cut Social Security or Medicare. She would instead look to grow these programs.
“She is a strong advocate for both [Social Security and Medicare] and is keen on expanding them,” Cirksena said. “This includes protecting benefits from any cuts and expanding the reach of coverage.”
If she were to expand on these programs as she has proposed, Cirksena states some changes may occur regarding tax payments and access to services.
“These plans may mean an increase in government spending and taxes, likely for upper-class earners,” Cirksena said. “It may also mean lower out-of-pocket healthcare expenses and easier access to services for retirees.”
If Vice President Kamala Harris wins the 2024 election, look out for the implementation of these changes in the coming years.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out What a Trump Presidency Could Mean for Social Security in 2025.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Kamala Harris’ Platform: How Her Plan for Social Security and Medicare Could Impact Your Finances
