Trump promised to never touch Social Security — but his big beautiful bill comes with a massive $169B shock for seniors. Protect yourself
Due to its widespread popularity, meddling with Social Security is generally considered politically taboo. President Donald Trump recognized this during his 2024 election campaign.
“I will never do anything that will jeopardize or hurt Social Security or Medicare… We’ll have to do it elsewhere. But we’re not going to do anything to hurt them,” he said (1) at the time.
Unfortunately, Trump’s Big Beautiful Bill (BBB) is now poised to do exactly what he promised he wouldn’t. In an indirect way, this signature piece of legislation actually creates a $169 billion shock impacting anyone who hopes to collect a benefit check in the future.
Here’s what you need to know about these potential consequences for your retirement.
Tax cuts mean less revenue
The BBB included several temporary tax credits and deductions (2), such as the elimination of taxes on overtime and tips and a special $6,000 deduction for seniors over the age of 65. While it’s safe to assume that these tax reductions are popular with the narrow cohort of people who qualify for them (and up to a point), they also more broadly reduce the government’s revenue, which makes funding social programs like Social Security more difficult.
According to the Social Security Administration’s Office of the Actuary’s (OACT) (3) letter to Senator Rob Wyden, this reduction in revenue has a clear impact. “Over calendar years 2025 through 2034, the total net increase in OASDI program cost is estimated to be $168.6 billion,” says the report. “The reserve depletion date for the OASI Trust Fund is accelerated from the first quarter of 2033 to the fourth quarter of 2032.”
In simple terms: Trump’s signature policy has increased costs by $169 billion and accelerated the trust fund’s depletion from early-2033 to late-2032.
Unlike the temporary and targeted tax cuts, this impacts all workers and retirees. Trust fund depletion could unleash a 24% benefit cut on average, according to the Committee for a Responsible Federal Budget (4).
This potential cut may even impact some of the seniors who benefit from the new BBB deductions. But for younger workers who are several years away from retirement, the impact is likely to be more severe.
Still, regardless of age, there are ways to protect yourself and minimize the impact.
Protect your retirement
If you share the worries about the government’s mismanagement of retirement funds and the economy in general, you should consider adding a safe haven asset to your portfolio for protection.
Traditionally, investors have considered gold a safe haven from reckless government spending, inflation and economic woes. That’s because the yellow metal is detached from politics and fiscal policy and retains its value better during times of crisis.
You can amplify the advantages of investing in gold with some additional tax benefits through Priority Gold. The platform helps you set up a so-called Gold IRA, which holds physical gold or gold-related assets within a retirement account.
Simply put, a Gold IRA helps you pay less taxes to the government and shield your wealth from government decisions or policy failures. To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
Another way to protect yourself, especially for investors with portfolios of $250,000 or more, is to hire a professional financial advisor to help you craft a resilient retirement plan. Financial decisions often become increasingly nuanced. Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often requires greater coordination and strategic planning.
In these cases, working with a financial advisor can help reduce costly mistakes.
Having an expert knowledgeable in changes to Social Security and someone who can help you incorporate them into your long-term plan can be invaluable if you’re anxious about your financial future.
If you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio.
From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
You can then schedule no-obligation consultations with your matches to determine who is the best fit for your long-term goals.
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