Mar 7, 2025
Imagine you’re a 61-year-old worker on the verge of retirement. You’ve managed to save up $179,000 and are looking forward to putting your feet up and collecting Social Security benefits once you end your career. But political shifts — like a new presidential administration — can stir up uncertainty, especially when it comes to Social Security.
As President Donald Trump has entered the White House for a second time, retirement policy has so far taken a back seat to issues such as immigration and foreign relations. But his campaign proposals tied to Social Security — both directly and indirectly — has many retirees waiting anxiously.
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While it’s impossible to predict specific outcomes, Social Security recipients should be watching for potential shifts in retirement program funding or changing priorities that could affect the solvency of the program’s trust funds. The government is presently inspecting the Social Security Administration for ways to cut costs, which may lead to diminished services that ultimately affects benefits, but in here we’re focusing on potential policy changes.
Let’s break down what might change based on what we know so far, as well as some options for creating a richer retirement.
What could change under Trump?
Social Security benefits have historically been a political minefield. Both Democrats and Republicans tout their commitment to protecting retiree benefits while standing guard against anything that could be perceived as lowering the benefit. So, where does Trump stand?
Let’s start with one of his big campaign promises: Trump stated he wants to end taxes on Social Security benefits. Doing so would allow beneficiaries to keep more money, however, experts believe it would also add to the program’s financial challenges by removing one of the streams that contributes to this vital safety net. Already, Social Security is facing depletion as soon as 2035, potentially leaving recipients with about 83% of their promised benefit.
Additional Trump moves could also hasten the insolvency of Social Security trust funds, according to the nonpartisan Committee for a Responsible Federal Budget.
For instance, he’s proposed eliminating taxes on tips and overtime, which could reduce payroll tax collection. Heavy tariffs on imports could stoke inflation and increase cost-of-living adjustments for beneficiaries. And his focus on deporting undocumented immigrants could reduce the number of immigrant workers paying into the Social Security trust funds.
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What should you do amid uncertainty?
Plenty of political maneuvering is ahead, and it’s uncertain whether all of Trump’s proposals will be successful. It’s also within the realm of possibility that Congress takes action to directly bolster Social Security funding.
So, if you’re 61 years old with $179,000 inside a retirement account, it probably makes sense to adjust your plans in ways that factor in Social Security but don’t require it to be the centerpiece of your retirement.
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Some ideas to explore that can stretch your resources:
Part-time work: Flexible or remote part-time jobs can supplement your income without derailing your retirement lifestyle. Look into consulting or freelance work in your field.
Delay Social Security: The size of your retirement benefit is partly determined by when you decide to claim. You can get Social Security as early as 62, but the amount will be reduced from what you’d get at full retirement age (66 or 67 depending on when you were born) — and if you delay even further, up until age 70, you could receive more than your full benefit.
Boost your emergency fund: Increasing your emergency savings between now and your planned retirement can provide peace of mind. Aim for at least six or 12 months’ worth of expenses in liquid savings to cover unexpected costs or bridge income gaps.
Seek out help: Navigating retirement uncertainty and planning for alternative income sources can be overwhelming. It’s often a good idea to seek professional advice tailored to your unique situation. A financial adviser can help you assess your retirement account, adjust your portfolio to maximize cash flow and explore income options.
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Chris Clark is a Kansas City–based freelance contributor for Moneywise, where he writes about the real financial choices facing everyday Americans—from saving for retirement to navigating housing and debt.
