While most 2024 presidential candidates have shied away from talking about Social Security or vowed “not to touch it,” former New Jersey Governor Chris Christie says that’s ridiculous, given the entitlement program’s well-documented looming funding crisis.
The 2024 Republican presidential candidate called out his fellow candidates for their silence on the subject during a conservative conference in Atlanta hosted by radio talk-show host Erick Erickson over the weekend.
At issue is the fact that the fund that pays Social Security benefits is on track to become depleted in about a decade, according to the 2023 Social Security Trustees Report. That would mean only 77% of benefits would be payable by 2033.
A recent Committee for a Responsible Federal Budget report shows that absent action from lawmakers, a typical couple would face a $17,400 cut to their annual Social Security benefits in 2033 if that 23% benefit cut were to happen.
“We’ve got to have this conversation. And other than me, nobody in this race is willing to talk about it. It’s ridiculous.”
Chris Christie
“Any 2024 presidential candidate who pledges not to touch Social Security is implicitly endorsing a 23% across-the-board benefit cut for the 70 million retirees when the Social Security retirement trust fund reaches insolvency in just a decade,” the CRFB report concluded.
Over the weekend, Christie emphasized that the problem we have is real, and if we don’t deal with it, the country’s $32 trillion national debt is going to get bigger and bigger.
“I want you to imagine for those of you that are on Social Security right now and depend on it, and for those of you who are looking towards it, what it would be like to cut that benefit 25% [sic] in one fell swoop,” Christie said in a lengthy on-stage interview with Erickson. “There would be people in this country that wouldn’t be able to pay their rent or their mortgage, wouldn’t be able to buy food, wouldn’t be able to heat their homes—cataclysmic stuff. So we’ve got to have this conversation. And other than me, nobody in this race is willing to talk about it. It’s ridiculous.”
That doesn’t sit well with Christie—currently polling in a tie for fifth with former South Carolina Governor Nikki Haley at about 3.5% support among GOP primary contenders behind former President Donald Trump (52.2%), Florida Governor Ron DeSantis (15.2%), conservative entrepreneur Vivek Ramaswamy (9.3%), and former Vice President Mike Pence (4.7%).
Social Security is obviously an issue where Christie feels like he can differentiate himself from the crowd and gain more support in the race.
“The most disgusting part of Joe Biden’s State of the Union address this year was when he stood up, and he said, ‘We’ll all agree, right? We’re not going to do anything to Social Security?’ And both sides got up and cheered. A group of liars and cowards, because they know that in 10 years, Medicare will be bankrupt. And in 11 years, Social Security will be bankrupt,” Christie said.
He added that what the law President Ronald Reagan passed 40 years ago requires, is if that happens, an immediate 25% cut in benefits in Social Security and in Medicare follows.
“…we can make real savings over the long term by playing with the eligibility age—but for younger people, so they have time to plan. To establish an IRA for themselves if they don’t already have one. To put more money in their 401(k) plan if their employer provides it.”
Chris Christie
So how would he address Social Security’s financial trouble?
During his comments in Atlanta last weekend, Christie mentioned there are three levers to Social Security: Eligibility, age, and taxes. “Those are the three things. There’s nothing else,” he said.
“I don’t think taxes should be on the table, because I think taxes are already too high. And I don’t think we’ve done nearly enough to try to be inventive on the other two to come back to the American people and say, ‘take the cap off Social Security taxes, increase the rate.’ I’m not for those things.”
What he does advocate for is raising the eligibility age for Social Security, in a way that would only impact those in their mid-40s and younger. “We’re raising the eligibility age for Social Security. If they can’t plan over the next 30-35 years for that eventuality, they got bigger problems than raising the Social Security age,” he said. “We can’t do it to people in their in their 50s, 60s or 70s. It’s too late for them to appropriately plan. But we can make real savings over the long term by playing with the eligibility age—but for younger people, so they have time to plan. To establish an IRA for themselves if they don’t already have one. To put more money in their 401(k) plan if their employer provides it.”
Christie also said means testing needs to be considered—as in the ultra-rich don’t need Social Security benefits, and therefore shouldn’t receive them.
“I’m sure he’s collecting it, but Warren Buffett does not need Social Security,” Christie continued, adding that means testing should start with the ultra-wealthy (mentioning Mark Zuckerberg, Elon Musk and Jamie Dimon by name), and work down from there.
Fellow Republican presidential candidates Nikki Haley and Mike Pence have also called for raising the Social Security retirement age and limiting benefits for wealthy retirees.
‘Doing something of consequence’
Without mentioning the extreme political fallout French President Emanuel Macron faced after raising France’s retirement age to 64 despite deep opposition, Christie over the weekend did acknowledge that even talking about these changes—let alone making them—will not help a politician’s popularity, but stressed tough choices need to be made to address real problems.
“If you’re President of the United States, you’ve got to be willing to sacrifice some of your popularity in return for doing something of consequence,” he said. “I think we have to do this, because otherwise, it’s a 25% cut in 11 years, and I don’t want to do that to folks who have no other way to support themselves. We need to have an honest conversation about it, and the only person who can lead that honest conversation in our system is the President of the United States. And you’ve got to be willing to take the risk.”
In talking about the national debt, Christie said he has no illusions of being able to balance the budget in his first term if elected.
“Obama, Trump and Biden have dug us too deep a hole. Trump added $6.5 trillion to the national debt in 4 years. And Biden is going to exceed that. Look everybody, this is a bipartisan problem,” Christie said.
“Let me promise you right now, I’m not balancing the budget in 4 years. The hole is too big to be able to do it. And it would involve massive cuts to entitlements plus massive increases in taxes. I don’t think we need to do that. We just need to show the trend going in the other direction. And over time, with a growing economy and discipline in our spending, we’ll get there.”
SEE ALSO:
• Absent Action, Typical Couple Faces $17,400 Social Security Benefit Cut in 2033
• Social Security Trust Fund Projected to be Depleted in a Decade
• Biden State of the Union Moment: Bipartisan Agreement on No Cuts to Social Security and Medicare?
• Pence: Trump and Biden ‘Identical’ on Social Security
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
