I rely on Social Security for retirement income — What does a Trump administration mean for my benefits?

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When President Donald Trump took office Jan. 20, he started moving forward with ambitious campaign promises that could impact the lives of Americans.

For retirees, some of the biggest changes could relate to Social Security.

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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.

If you’re unsure which path to take amid today’s market uncertainty, it might be a good time to connect with a financial advisor through Advisor.com.

This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.

Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.

You can view advisor profiles, read past client reviews, and schedule an initial consultation for free 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.

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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 $2,870 per ounce.

Opting for a gold IRA gives you the opportunity to hedge against market volatility by allowing you to invest directly in physical precious metals rather than stocks and bonds.

One way to invest in a gold IRA is with the help of Thor Metals.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.

To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.

Read more: Rich, young Americans are ditching stocks — here are the alternative assets they're banking on instead

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).

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 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.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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