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Social Security Can Change Into Personal Accounts Under Trump Plan—Ted Cruz

Social Security Can Change Into Personal Accounts Under Trump Plan—Ted Cruz

Summary

Senator Ted Cruz said a new savings program supported by President Donald Trump for children could lead to changing Social Security into personal investment accounts. This idea raises concerns because Social Security is a key program for millions of Americans and any changes to it can create public debate.

Key Facts

  • Senator Ted Cruz described "Trump Accounts" as personal investment accounts that could replace parts of Social Security.
  • President Trump supports a savings program for children called Trump Accounts.
  • Cruz suggested parents could choose to divert some of their Social Security taxes into these personal accounts.
  • Social Security currently provides benefits to over 70 million retirees, disabled workers, and survivors.
  • Social Security faces long-term financial challenges that could cause benefit cuts if Congress does not act.
  • Previous attempts to create personal retirement accounts, such as during President George W. Bush’s term, failed in Congress.
  • A 2022 poll showed only 15% of voters support privatizing Social Security, while the majority want it to stay the same.
  • Critics warn that privatizing Social Security could put retirees' money at risk and benefit Wall Street investors rather than the public.
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