As the 2024 presidential election approaches, former President Donald Trump has proposed several changes that could significantly impact retirement savings for millions of Americans. From eliminating taxes on Social Security benefits to introducing private equity investments into retirement accounts, these proposals could shape the financial future of retirees and those planning for retirement.
Here’s a breakdown of Trump’s pension-related proposals and what they could mean for your savings.
1. Eliminating Taxes on Social Security Benefits
One of Trump’s major proposals is to eliminate federal taxes on Social Security benefits. Currently, depending on income levels, up to 85% of Social Security benefits are taxable. This tax burden affects many retirees who rely on Social Security as a key source of income.
Eliminating these taxes could provide a financial boost to retirees, increasing their disposable income. However, this move also raises concerns about its impact on the Social Security Trust Fund, which is already facing financial challenges. According to the Social Security Administration (SSA), the trust fund is projected to become insolvent by 2035. Removing this tax could accelerate that timeline, putting future benefits at risk.
2. Introducing Private Equity Investments into Retirement Accounts
Another key proposal under consideration is expanding access to private equity investments within retirement accounts such as 401(k)s and IRAs. Private equity investments typically offer the potential for high returns but come with significant risks, high fees, and limited liquidity.
Advocates argue that this could diversify investment options and allow retirement savers to tap into potentially lucrative opportunities. However, critics warn that private equity investments are complex and could expose retirees to greater financial risk. The Department of Labor has previously issued guidelines on private equity investments in retirement accounts, emphasizing the importance of transparency and risk assessment.
3. Extending the 2017 Tax Cuts and Jobs Act

Trump has also signaled his intent to extend provisions of the 2017 Tax Cuts and Jobs Act (TCJA), which are set to expire in 2025. The TCJA lowered tax rates across the board and increased the standard deduction, benefiting many retirees. However, critics argue that extending these cuts could contribute to the national deficit and put pressure on government programs, including Social Security and Medicare.
Extending these tax cuts could provide short-term financial relief for retirees by maintaining lower tax rates, but it remains unclear how the government would offset potential revenue losses.
4. Potential Changes to Social Security and Medicare
While Trump has pledged not to cut Social Security or Medicare benefits, he has previously suggested reforms that could impact these programs. Potential changes could include raising the full retirement age or altering benefit calculations.
Any modifications to Social Security or Medicare would directly affect retirees and those nearing retirement age. The Social Security Administration and the Centers for Medicare & Medicaid Services regularly update projections and reports on the financial health of these programs.
5. Lowering Interest Rates

Trump has also expressed a desire to push for lower interest rates, which could have mixed effects on retirement savings. On one hand, lower interest rates make borrowing more affordable for retirees who still carry mortgages or other debt. On the other hand, lower rates can negatively impact returns on savings accounts, CDs, and bonds—key income sources for many retirees.
The Federal Reserve plays a crucial role in setting interest rates, and any policy changes in this area would need to align with economic conditions.
What This Means for Your Retirement Savings?
Trump’s proposals present both opportunities and risks for retirees and those planning for retirement. While eliminating taxes on Social Security and extending tax cuts could provide immediate financial relief, other policies—such as introducing private equity into retirement accounts and lowering interest rates—come with potential downsides.
As these proposals evolve, retirees should stay informed and consider consulting financial advisors to assess how potential policy changes may affect their retirement plans.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.

Premlata is a seasoned finance writer with a keen eye for unraveling complex global financial systems. From government benefits to energy rebates and recruitment trends, she empowers readers with actionable insights and clarity. When she’s not crafting impactful articles, you can find her sharing her expertise on LinkedIn or connecting via email at [email protected].