The Trump administration wants to cut back disability benefits for low-income and older Americans by up to 20%, a move that could affect hundreds of thousands of people. (1)
It’s part of the administration’s focus on streamlining Social Security — by cutting staff and reducing benefits — to save money and reduce alleged fraud.
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Now the Social Security Disability Insurance (SSDI) program is under the axe.
As the Washington Post reports, up till now, the Social Security Administration has given special consideration to older people with an injury or disability on the understanding they may find it harder to adapt to jobs due to their age. (2)(3)
But the Trump administration is looking at eliminating age as a qualifier for SSDI or raising the age threshold to 60. Trump staffers are also looking at narrowing the definition of what qualifies as a “disabling” condition.
Proponents of the move point to a society in which people are living longer, healthier lives and can work well past traditional retirement age.
But Lynn Paramore, a senior research analyst with The Institute for New Economic Thinking, warns that this view overlooks the reality that millions of Americans work in physically demanding, low-wage jobs and experience chronic health problems earlier. (4)
Economists with the National Bureau of Economic Research warn that tighter qualifications may push thousands of older Americans into poverty and force them to claim early retirement benefits from Social Security at a reduced rate of up to 30%. (5)
Making older Americans jump through more hoops
As it stands, older Americans applying for disability benefits wait up to five months for their SSDI applications to be approved.
Waits are longer since the Trump administration laid off 7,000 Social Security Administration staff — and even longer since the government shutdown. Every application must include thorough medical documentation and work history and be reviewed by state disability examiners.
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Even without the proposed tightening of rules, nearly two-thirds of first-time applicants are denied due to incomplete medical evidence and a strict definition of what qualifies as a “disabling” condition.
If an applicant is denied and chooses to appeal, the process can take a year or more, with some applicants ultimately giving up. (6)
Older applicants will find it even harder to qualify in 2026, when the SSA starts using a database that identifies jobs that SSDI applicants could do if age were not a limiting factor. Critics say this doesn’t take into account workplace ageism.
Prepare for more limited government assistance
Whether or not these changes take effect, Americans need to plan for uncertainty in their retirement years.
You can take practical steps to prepare for possible changes. Staying informed is the best, most important step to take.
Understanding how policy changes might affect your benefits ahead of time will allow you to adjust your financial plans before problems arise.
Follow updates from the Social Security Administration and credible sources such as the Government Accountability Office.
If you haven’t already created an account with the SSA, do so through the mySocial Security website.
For those already in retirement, now is a good time to consolidate and eliminate any outstanding debts.
Reviewing health coverage is equally critical, since changes to disability rules could affect Medicare eligibility or premiums.
If you are close to retirement or still more than a decade away, work with a financial advisor to explore defensive strategies like converting a traditional IRA to a Roth IRA.
This could create a source of tax-free income that can cushion retirement savings against future uncertainty.
Regardless, for millions approaching retirement, the message is clear: The safety net may not be as strong tomorrow as it was yesterday.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Center on Budget and Policy Priorities (1, 2); Washington Post (3); The Institute for New Economic Thinking (4); National Bureau of Economic Research (5); Patrick Kelly (6)
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This article originally appeared on Moneywise.com under the title: Trump admin eyes slashing disability benefits for older Americans by up to 20% — here’s what that could mean for you
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