With an estimated 76 million baby boomers hitting retirement in the next few years, it’s no wonder issues surrounding retirement are a hot topic in this year’s election. Here’s a short list of where the candidates stand on issues affecting the over-50 set.

Estate Tax:

The current 2008 estate tax law provides for families to pass up to $7 million onto heirs tax-free.

Obama would like to make the current 2009 estate tax rates permanent. This would allow individuals to pass up to $3.5 million onto their heirs tax free. Beyond that amount, assets would be taxed at 45%.

McCain’s plan would allow individuals to pass $5 million tax free, and any assets above that would be taxed at 15%. However, because the estate tax is such a large source of revenue for the government, taxes would need to be raised in other areas to account for the deficit that a 15% estate tax would create.

Social Security:

Although neither candidate has a detailed plan to “save” social security, both have outlined efforts that will be made to keep benefits flowing.

Obama’s additional proposed payroll tax of 2% to 4% for individuals making more than $200,000 will address funding for social security by helping provide benefits for the less fortunate.

McCain is in favor of letting people invest a portion of their social security payments, up to 20%, privately. Many say this freedom of investing within social security will encourage more people to invest.

Healthcare:

Senator Barack Obama plans to mandate health insurance for all children, and offer government subsidies to individuals who cannot afford insurance or do not have it offered through their employer.

Under the Obama plan, employers are required to offer health insurance or pay into a federal fund that distributes coverage nationwide. Tax credits will be offered to employers who provide a health plan for their workers.

Senator John McCain plans to abolish the current employer-sponsored healthcare system and create a competitive marketplace for health insurance where individuals purchase their own plans.

Under the McCain plan, individuals would be offered a refundable tax credit for $2,500 to purchase their own plans, and families would be offered $5,000.

Taxes:

Obama would like to add an additional payroll tax on people making more than $250,000 each year, in the range of 2% to 4%. He is not in favor of increasing the cap on which payroll taxes are paid.

McCain does not want to raise taxes on any income bracket, and is interested in reducing the corporate tax rate from 35% to 25% in order to help the job market. Additionally, McCain plans to increase the tax exemption for dependents to $7,000 from $3,500.

Withdrawing Assets in Retirement:

Currently, the law states that individuals older than 70 and a half must take a minimum withdrawal out of their retirement accounts each year. However, because the markets are down, both candidates have suggested suspending the required minimum distribution to help retirees avoid pulling their funds at a time they would lose money.

Similarly, both candidates would like to protect the first $50,000 of a retiree’s income.

Obama’s plan states that seniors are allowed to withdraw $50,000 of retirement income tax-free.

McCain’s plan states that the first $50,000 of retirement income will be taxed at a capped rate of 10%.

Capital Gains:

During George W. Bush’s presidency, the capital gains tax rate was lowered from 20% to 15%.

Obama favors keeping Bush’s tax cuts for individuals who make less than $200,000 and families that make more than $250,000. However, for people making more than $200,000 or families making more than $250,000, Obama would like to increase the tax rate on capital gains to 20%.

McCain is in favor of maintaining the capital gains rate at 15% for everyone. However, in 2009 and 2010 McCain would like to lower capital gains taxes from 15% to 7.5%. Also, McCain would like to increase the amount individuals can write off following a loss in the market, from $3,000 to $15,000.