Steve Forbes, former presidential candidate and chair of Forbes Media, told Newsmax on Thursday that President Donald Trump should pursue Social Security reform that gives younger Americans better returns through personal retirement accounts.
Appearing on "Finnerty," Forbes said Social Security reform could be both politically popular and economically necessary, provided it avoids cutting benefits for current and near-term retirees.
"You don't have to change benefits for those people who are on the system [or] are about to go on the system," Forbes said. "But for younger people, bring in a new system where part or whole of their payroll tax goes to their own personal retirement accounts."
According to Forbes, such a system would yield significantly higher returns. "Numerous studies have shown whether you just leave it in CDs, you'd have two to three times the retirement benefits that you get under the current system, and you would own it, not the Washington politicians," he said.
He added that concerns over the long-term solvency of the Social Security trust fund are primarily based on low economic growth assumptions. "Social Security supposedly runs out of funds on the assumption of a growth rate of 1.8%," Forbes said. "Now, [the] historic average is about 3.5%. So, if the Trump reforms go through — especially a big, delicious tax cut, [a] huge, beautiful tax cut—we can get the growth rate up to 3, 3.5" percent.
That growth, he said, would delay the Social Security funding crisis for at least a decade, giving lawmakers time to implement meaningful reforms.
"In terms of Social Security, the so-called 'privatize it,' all you [reform] do is for [the] younger people. Give them the choice," Forbes said. "Do you want the old system that will eventually go broke, or do you want a new system where your earnings go into [an] account that belongs to you and will give you a better return?"
Forbes emphasized that giving people more control over their retirement is logical and appealing. "The nice thing is, when [you have] that kind of system, [you] determine when you want to retire — not the Washington politicians. So you get more, and you have more choice."
He pushed back on raising the retirement age, a suggestion often floated by policymakers to shore up the system. "Forget about jiggling retirement ages, which is seen as taking away something," Forbes said. "You have the opportunity to do something for younger people."
Asked directly whether he believes Trump would eliminate Social Security, Forbes was clear: "No."
Instead, he argued the path forward involves embracing reforms that allow individual investment while preserving the current system for those near retirement. "You can reform the system for younger people. That's what they should do," he said.
GET TODAY NEWSMAX+:
NEWSMAX is the fastest-growing cable news channel in America with more than 30 million people watching!
Reuters Institute reports NEWSMAX is one of the top news brands in the U.S.
You need to watch NEWSMAX today.
Get it with great shows from Rob Schmitt, Greta Van Susteren, Greg Kelly, Carl Higbie, Rob Finnerty – and many more!
Find the NEWSMAX channel on your cable system – Go Here Now
BEST OFFER:
Sign up for NEWSMAX+ and get NEWSMAX, our streaming channel NEWSMAX2 and our military channel World at War.
Find hundreds of shows, movies and specials.
Even get Jon Voight’s special series and President Trump’s comedy programs and much more!
Watch NEWSMAX+ on your smartphone or home TV app.
Watch NEWSMAX anytime, anywhere!
Start your FREE trial now: NewsmaxPlus.com
Jim Thomas ✉
Jim Thomas is a writer based in Indiana. He holds a bachelor's degree in Political Science, a law degree from U.I.C. Law School, and has practiced law for more than 20 years.
© 2025 Newsmax. All rights reserved.