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When President-elect Donald Trump takes office starting Jan. 20, major changes could impact the lives of Americans if he moves forward on his ambitious election campaign promises.
For retirees, some of the biggest changes could relate to Social Security.
Here’s how benefits could be impacted, based on both Trump’s campaign statements and past policy proposals.
Benefit amounts
Trump has consistently stated he won’t cut retirement benefits or raise the retirement age, a common proposal for securing the program’s finances.
“I will not cut one cent from Social Security or Medicare,” he pledged during his campaign. He also has designs to make social security tax-free for the seniors that use it.
But these taxes are vital for funding retiree payouts. The CRFB estimates that Trump’s plans could result in a 33% benefit cut by 2035. With the average monthly SSA payout at just $1,862, it’s crucial to prepare for these changes — perhaps with the guidance of a financial advisor who can help provide some peace of mind.
WiserAdvisor offers a free online service that matches you with qualified financial professionals who can create a tailored plan to help you achieve your retirement goals.
An advisor can help you secure your financial future, using Social Security benefits as a supplement rather than a sole source of income.
Simply answer a few questions, and WiserAdvisor will connect you with vetted advisors based on your needs. You can view profiles, read client reviews, and book a free consultation with no obligation to hire.
Taxes on benefits
For single filers with income above $34,000 or married couples above $44,000, up to 85% of Social Security benefits can be taxed. Even if your income is between $25,000–$34,000 (single) or $32,000–$44,000 (couple), 50% of benefits may be taxed. This affects 40% of beneficiaries, and your tax rate could be higher if your provisional income pushes you into a higher tax bracket.
On a recent podcast, celebrity investor Suze Orman proclaimed that the best way to avoid this ‘tax torpedo’ was “to only have Roth retirement accounts — bar none,” effectively decreasing reliance on Social Security.
She also emphasized the importance of regularly reviewing your financial portfolio in a recent blog post. “You should log in and make sure your mix of investments — stocks/bonds/cash/ — is in line with your long-term goals.”
For example, silver and gold have long been considered popular hedges against inflation and market volatility.
The reason is simple: central banks can’t print precious metals in unlimited quantities like fiat money. Furthermore, gold prices surged in 2024, now standing at about $2,700 per ounce.
One way to invest in precious metals that also provides significant tax advantages is to open a gold IRA with help of American Hartford Gold. This retirement account can help stabilize your finances by allowing you to invest directly in physical precious metals, rather than stocks and bonds.
One of the country’s most trusted precious metals companies – with an A+ rating from the Better Business Bureau – American Hartford Gold has helped thousands of clients protect their retirement.
When you sign up with American Hartford Gold, you’ll be eligible for an offer to receive up to $15,000 in free silver, along with the assurance of the best pricing through their price match guarantee.
A rock solid retirement plan may also include multiple types of IRAs, based on the best fit at different points in your career.
There are a lot of options out there when it comes to IRA investing, so consulting a financial advisor specializing in retirement planning and accounts can help you open a new account or make the most of your current Roth IRA account.
Thankfully, RothIRA.org can help you can find a vetted financial advisor best suited to guide you.
The process is simple: just provide some basic information about yourself, and RothIRA.org will match you with two to three FINRA/SEC registered financial advisors near you. You can then set up a free initial consultation with your preferred advisor to further assess if it’s the right fit for you — with no obligation to hire.
Long-term funding
Retirees may face bad news if Trump fulfills key policy goals, potentially worsening Social Security’s long-term finances.
According to the Committee for a Responsible Federal Budget (CRFB), this could occur if deportations increase, certain taxes are eliminated, tariffs are imposed, and taxes on Social Security benefits are removed.
While a shortfall was already projected by 2035, the CRFB estimates Trump’s proposals could bring insolvency three years earlier. Retirees may see short-term benefits from Trump’s policies, but should carefully research the long-term impacts to make informed financial decisions.
To help reduce reliance on Social Security, consider secure and guaranteed fixed-income savings vehicles like Certificates of Deposit (CDs). SavingsAccounts.com is an online platform that helps you easily compare CD rates from multiple banks and financial institutions nationwide.
This free tool allows you to find the best interest rates, terms and features to maximize your savings securely.
Whether you’re a conservative saver, a retiree, or a long-term planner, SavingsAccounts.com offers personalized recommendations based on your financial goals, time horizon, and risk preferences.
The platform provides real-time data on competitive rates, ensuring you can secure the best returns without the hassle of visiting multiple institutions.
Another option is to combine savvy aving and investing in one place.
For example, Public offers an innovative approach to self-directed investing with a focus on transparency, community, and long-term growth.
There’s the added bonus of Public’s high-yield cash account with an industry-leading 4.6% APY and there are no fees and no minimum balance required. This can allow you to grow your uninvested cash more effectively over time.
Public is commission-free, and offers a self-directed investing platform that lets you manage diverse assets — including stocks, ETFs, crypto, and alternative investments. Unlike robo-advisors, Public provides control without automated management, plus features to help you make informed choices, like real-time insights and social sharing.
If you want to compare savings options, check out the Moneywise Best High-Yield Savings Accounts to see a list of accounts that have interest rates higher than the national average APY of 0.46%.
For many would-be retirees, finding extra money in their budget to put towards savings can be tough.
If an automated way to save and invest is what you want, there’s a way you can do both just by making your everyday purchases. Acorns offers an app that allows you to use everyday purchases to save and invest for the future.
When you make a purchase on your credit or debit card, Acorns automatically rounds up the price to the nearest dollar and places the excess into a smart investment portfolio.
For those looking to grow their retirement savings, Acorns offers customizable plans.
With the Acorns Silver plan, you can access Acorns Later, a retirement account with a 1% IRA match on new contributions. For a more hands-on approach, the [Acorns Gold plan]{https://moneywise.com/c/1/8/648?placement=16) offers a 3% IRA match and allows you to personalize your portfolio by selecting your own stocks.
Sign up today and receive a $20 bonus investment to get you started on building a stronger nest egg.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
