What Nikki Haley Has Said About Cutting Social Security

Nikki Haley, the former governor of South Carolina and Republican presidential candidate, laid out some proposals for Social Security reforms, including lifting the retirement age for people in their 20s.

Haley suggested the U.S. raise the retirement age to ensure the long-term sustainability of the program that at the moment serves more than 70 million Americans.

Social Security reform is a hot-button issue as the 2024 presidential debates ramp up, with the Iowa caucuses kicking off primary elections in a little more than a month.

"Social Security will go bankrupt in 10 years," Haley said during the Republican presidential debate in November. "What we need to do is keep our promises. Those who have been promised, should keep it. But for my kids in their 20s, you go and say we are going to change the rules, change the retirement age for them."

She added: "Instead of cost-of-living increases, we should go for increases based on inflation. We should limit benefits on the wealthy."

Haley declined to answer directly at what age retirees should qualify for Social Security.

"It's going to be those in their 20s, just coming into the system and it should reflect more of life expectancy. It doesn't do that now," she said.

Newsweek reached out to Haley's campaign for comment via email on Friday.

The Social Security trust is expected to be depleted in about a decade. The current age at which Americans can begin to access their Social Security benefits is 62. Cost-of-living adjustments (COLA) increases are calculated to hedge on inflation.

"The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers," a spokesperson at the Social Security Administration told Newsweek.

Experts do point out that should no reform take place, the $2.8 trillion trust fund reserves that pay for Social Security will be used up by "around 2033 or 2034", Steve Goss, Social Security's chief actuary, said recently. But that does not mean that benefits will cease completely.

"We're projecting at that point in time, if we have used up our trust fund reserves, the continuing income will be equivalent to 80 percent of what we need to pay the full scheduled benefits on a timely basis," he said. "Now, that is not the full 100 percent, but it's a long way from not having any money to pay for any benefits."

Haley, who also served as the U.S. ambassador to the United Nations during the Donald Trump administration, made clear on the debate stage in November that tackling Social Security will be high on her agenda, should she be elected president.

"Any candidate that tells you that they are not going to take on entitlement is not being serious," she said.

Haley has in recent weeks gained momentum in her race for the White House. She has picked up key endorsements, such as from the Americans for Prosperity Action, an influential conservative political advocacy group affiliated with billionaire brothers Charles Koch and the late David Koch. Some polls have put her second to former president Trump in New Hampshire and Ohio, suggesting she could emerge as an alternative to Trump.

Haley also appears to have attracted the attention of some prominent leaders in Wall Street.

JP Morgan CEO Jamie Dimon said on Wednesday at the DealBook Summit that Haley could be an alternative to former president Trump.

"If you are a very liberal democrat, I urge you help Nikki Haley too. Get a choice on the Republican side, that might be better than Trump," Dimon said.