Feb 27, 2026
Some workers who are approaching retirement may need to change their plans thanks to President Donald Trump’s “One Big Beautiful Bill” — including when they retire.
Due to the introduction of new work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), Americans may need to remain in the workforce longer to maintain much-needed access to health care and food stamps.
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The bill’s changes to Medicaid include mandatory work requirements for many individuals aged 19 to 64, who will need to complete 80 hours per month at a job, a work program or job training, attending school at least part time or participating in community service activities.
Prior to the new legislation, federal law prohibited work requirements for Medicaid, though some states had implemented their own rules through waivers, according to KFF (1). The organization notes the legislation largely applies to states enrolled in the Affordable Care Act Medicaid expansion (2). States have until Jan. 1, 2027, to adopt the new requirements.
For the SNAP program, work requirements, which went into place Feb. 1, now impact adults between the ages of 55 and 64, as well as adults with children over the age of 14. They must also work at least 80 hours a month or see their benefits reduced to three months over three years.
Unfortunately, those who are retired or nearing retirement and not yet 65 may get caught in the middle of these changes. Here’s how these individuals can prepare for the changing eligibility rules.
Interrupted retirement plans
For many, the years between early retirement and Medicare eligibility can be financially precarious. Those who retire before age 65 may have to fund their own health insurance if they no longer qualify through their former employer or a spouse. This could affect when they apply for Social Security retirement benefits — if they need the extra income before they reach full retirement age (67 for those born after 1960) and apply early, they may end up with a permanently reduced benefit.
Some low-income retirees previously used Medicaid to bridge the gap until they qualified for Medicare, but that may no longer be possible unless they return to work. And that prospect can be a challenge for many.
“A substantial portion of the people taking early retirement are doing so because they basically are having a hard time staying in the workforce,” Jack Smalligan, senior policy fellow at the Urban Institute, told CNBC (3).
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He noted that higher-income individuals tend to have better health and can work longer in life, while the opposite can be true for those with lower incomes.
It’s also worth noting that many of the most easily accessible jobs tend to involve a certain level of physical labor that may be difficult to achieve for older workers.
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Reassessing your retirement plan
If you’re an older individual who was intending on using these one or both programs in early retirement, or you’re presently caught up in the changes, your personal savings may matter now more than ever. It may also be time to adjust your budget and spending.
If you’re not able to register for health insurance through your old employer or spouse, extending your coverage via the federal program COBRA may be an option. This can offer up to 18 months of additional coverage, and you must apply within 60 days of your employer benefits ending. Note, however, your premiums may increase. Otherwise, a marketplace plan through the Affordable Care Act is another insurance option.
As for food assistance, many cities have charitable, community-driven options to help feed those who are hungry. Local pantries can provide some food options. Churches or community centers may also have programs to help people access meals.
For those who plan to return to work, look into any job training or other programs provided by your city or state. There may be some particularly geared toward senior citizens. Look for Senior Services or a local Departments of Aging.
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
