during a presidential campaign in which few topics were off-limits, donald trump didn<u+2019>t say much about retirement policy. but retirement-policy experts say the few comments the president-elect has made about social security<u+2014>along with congressional republicans<u+2019> proposals aimed at tweaking retirement plans<u+2014>provide some clues as to what to expect. so far, mr. trump has said he has no plans to cut social security benefits or raise the payroll taxes that support the program. <u+201c>our goal is to keep the promises made to americans through our social security program,<u+201d> mr. trump wrote in response to an invitation from aarp, the advocacy group for older americans, to both presidential candidates to outline their positions on making <u+201c>social security financially sound for future generations.<u+201d> mr. trump predicted that his plans to boost economic growth would shore up social security<u+2019>s finances. currently, the program<u+2019>s trustees project it will no longer be able to pay full benefits starting in 2034. <u+201c>the key to preserving social security,<u+201d> mr. trump wrote to aarp members, <u+201c>is to have an economy that is robust and growing.<u+201d> retirement-policy experts say higher economic growth alone isn<u+2019>t enough to safeguard social security. according to richard johnson and karen smith of the urban institute, a think tank, average real economic growth of 3.4% a year would push back <u+201c>by three decades the date when the system could no longer pay full benefits, from 2035 to 2064.<u+201d> but after that, they project, the <u+201c>annual deficit then soars<u+201d> again. <u+201c>strong economic growth generates a lot of tax revenue for social security right away without immediately changing benefits,<u+201d> they wrote in a blog post earlier this year. but <u+201c>as the economy grows faster and people earn more, they eventually receive more social security benefits once they retire.<u+201d> in his 2000 book <u+201c>the america we deserve,<u+201d> mr. trump expressed support for a privatized social security account that beneficiaries could invest in the markets. <u+201c>the solution to the great social security crisis couldn<u+2019>t be more obvious,<u+201d> he wrote in the book, whose co-author was dave shiflett. <u+201c>allow every american to dedicate some portion of their payroll taxes to a personal social security account that they could own and invest in stocks and bonds.<u+201d> it isn<u+2019>t clear whether the view espoused in the book still reflects mr. trump<u+2019>s thinking. his press office didn<u+2019>t respond to a request for comment. republican congressional leaders have said the social security program will need serious changes that could include raising the full retirement age or reducing cost-of-living adjustments. meanwhile republicans, who now control both houses of congress, are backing other measures to improve retirement security. one bipartisan bill would allow small businesses to band together to offer retirement-savings plans.<u+00a0>currently, there is no access to a plan at work for one-third of private-sector employees, many of whom work for small companies. so-called multiple-employer plans are allowed now, but only for businesses in the same industry. the same bill would also encourage 401(k)-style plans to offer annuities, which help participants transform their balances into a lifetime stream of income. currently, just 14% of the 401(k)-style plans vanguard group administers offer annuities. in part, this is because of employers<u+2019> concerns about their legal liability should the insurer they contract with for the annuity become insolvent. to encourage more companies to take the plunge, the bill provides protections from lawsuits for employers that meet certain requirements, including selecting an annuity provider that complies with the regulations in states where the company does business. while the bill is unlikely to pass this year, some experts expect it to be resurrected in 2017. another retirement-policy area in which a trump presidency could have an impact: the labor department<u+2019>s so-called fiduciary rule, which aims to eliminate conflicts and ensure that brokers put the interest of retirement savers ahead of their own. analysts and consultants have said there is a strong possibility the rule will be dismantled or watered down by mr. trump or house republicans who have staunchly opposed the new regulation, saying it is costly and will cut small retirement savers off from advice. both house speaker paul ryan (r. wis.) and trump adviser anthony scaramucci, founder of skybridge capital, support doing away with the rule.
retirement policy under donald trump? unclear, but there are clues - wsj
anne tergesen