Taxes are going to change for retirees under Trump’s ‘big beautiful bill’ — why you can’t afford to waste time
Apr 2, 2026
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The “One, Big, Beautiful Bill” Act (OBBBA) is now law — and for Americans over 65, the tax landscape is shifting in ways that could meaningfully affect retirement income.
Signed on July 4, 2025, this 940-page legislative overhaul touches everything from health care to immigration.
But for retirees, the most immediate impact shows up in the tax code — where several new benefits come with a clear expiration date.
You now have a narrow four-year window to capitalize on these changes. Here’s what’s at stake for your wallet — and how to adjust your tax plans accordingly.
Grab the new ‘Senior Bonus’ before it expires
If you’re struggling with the cost-of-living crisis, the OBBBA offers some immediate, albeit temporary, relief. Those aged 65 and above can now claim a bonus tax deduction of $6,000 for single filers or $12,000 for joint filers.
This is on top of the existing standard deduction, potentially shielding a massive chunk of a couple's income from federal taxes.
But there’s a catch: these measures are set to expire after the 2028 tax year. Taking full advantage may require a precise strategy to ensure you aren't leaving money on the table or triggering an accidental audit.
That’s where a second set of decisions comes into play — not just what you claim, but how you structure your overall tax strategy. Some retirees may choose to work with a fiduciary financial advisor to map this out, especially as rules evolve.
Finding a reliable financial advisor is now easier than ever with Advisor.com. Their network consists of fiduciaries, so they’re legally obligated to act in your best interest.
To get started, enter some basic information about yourself and your financial goals, and Advisor.com will scour through its database and match you with reputable SEC/FINRA-registered advisors near you.
A qualified financial advisor can stick with you for the long haul, so it’s worth taking your time to choose one. Advisor.com lets you set up a free, no-obligation consultation with your match to see whether they’re the right fit.
High-yield havens for your tax savings
The bill also raised the State and Local Tax (SALT) deduction cap from $10,000 to $40,000. If you’re living in a high-tax state, this could result in a significantly larger tax refund this year.
But a bigger refund raises a practical question: where should that money go?
With inflation still affecting everyday costs, leaving cash in a low-interest account may not do much to preserve purchasing power. Some retirees are instead looking for low-risk ways to earn a bit more on short-term savings.
For example, high-yield cash accounts currently feature rates well above traditional savings accounts, at least for introductory periods.
A high-yield account like a Wealthfront Cash Account can be a great place to grow your uninvested cash, offering both competitive interest rates and easy access to your money when you need it.
A Wealthfront Cash Account currently offers a base APY of 3.30% through program banks, and new clients can get an extra 0.75% boost during their first three months on up to $150,000 for a total variable APY of 4.05%³.
That's ten times the national deposit savings rate, according to the FDIC's March report⁴.
Additionally, Wealthfront is offering new clients who enable direct deposit ($1,000/mo minimum) to their Cash Account and open and fund a new investment account an additional 0.25% APY increase⁵ with no expiration date or balance limit, meaning your APY could be as high as 4.30%.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, your funds remain accessible at all times. Plus, you get access to up to $8M FDIC Insurance eligibility through program banks.
If you want to explore more options, check out the Moneywise list of the best high-yield savings accounts of 2026 to help you compare a few high-yield savings accounts.
For instance, customers can earn up to 4.00% APY when they set up qualifying direct deposits with SoFi, including a limited-time 0.70% APY boost. New members may also qualify for a welcome bonus of up to $300, depending on deposit activity.
Others may prefer to lock in returns through certificates of deposit, which typically yield higher returns than savings accounts.
CD Valet tracks over 40,000 verified rates from FDIC-insured banks and NCUA-insured credit unions nationwide. Unlike other websites, they show every publicly available rate, ensuring you have a comprehensive view of the market.
Plus, their CD rates are updated continuously, so you can shop, compare and open CDs with ease.
The right choice depends on how soon you might need the money, but the broader goal is the same: making your tax savings work a little harder.
Read More: 7 ways to grow your juicy tax return in 2026
The $1.1 trillion downside: Medicare and Medicaid
Not all aspects of the bill are beneficial for retirees.
To help offset tax cuts, the legislation includes roughly $1.1 trillion in reduced federal spending on programs tied to the Affordable Care Act and Medicaid over the next decade. According to estimates from the Congressional Budget Office, millions could lose coverage over time.
For retirees, that could mean higher out-of-pocket costs — and a greater need to manage monthly expenses carefully.
Long-term care insurance can play an important role in preparing for these potential gaps. It helps cover the cost of services such as in-home care, assisted living, and nursing home care — expenses that can quickly erode retirement savings if left unplanned.
Without adequate coverage, the financial burden often shifts to family members, potentially creating additional strain. That’s why exploring your options is key.
When considering long-term care insurance, GoldenCare offers different options based on your needs, including hybrid life or annuity with long-term care benefits, short-term care, extended care, home health care, assisted living, and traditional long-term care insurance.
You can combine your term life insurance policy with a long-term care insurance policy to give you and your family peace of mind.
One place where many older Americans may have more flexibility than they realize is in their home. After years — or decades — of ownership, it’s not uncommon to be sitting on a significant amount of home equity. And in a higher-cost environment, that equity can sometimes serve as a financial backstop.
For homeowners who want to stay put but access liquidity, a home equity line of credit (HELOC) is one option to consider.
It allows you to borrow against your home as needed, rather than taking a lump sum upfront, which can be useful for covering unpredictable expenses like medical bills.
You can compare low HELOC rates in minutes with Figure. Their application is 100% online — no need to wait for an in-person appraisal.
For retirees looking for a more structured income stream, you may want to explore a reverse mortgage.
These loans allow homeowners 62 and older to convert a portion of their home equity into cash — either as monthly payments, a line of credit, or a lump sum — without requiring monthly loan payments.
Providers like Longbridge specialize in reverse mortgages and can walk through how the product works, including costs, eligibility requirements, and long-term implications.
Of course, tapping into home equity isn’t the right fit for everyone. Both HELOCs and reverse mortgages come with trade-offs, particularly when it comes to interest costs and the potential impact on your estate.
However, for retirees facing rising health care expenses, these tools can provide a valuable source of funds to help cover medical bills and long-term care costs, especially at a time when other forms of financial support may be limited.
Shock-proof your retirement with gold
The bill is also expected to add to the national debt, with some projections estimating an increase of more than $3 trillion. That has raised concerns among economists about longer-term inflation and the potential impact on purchasing power.
For retirees relying on fixed income streams like Social Security or pensions, that risk is hard to ignore.
As a result, some investors consider diversifying beyond traditional stocks and bonds. Assets like gold, for instance, have historically been used as a hedge during periods of economic uncertainty or currency weakness.
For those exploring that route, companies like Priority Gold offer ways to hold physical gold within a tax-advantaged IRA structure.
While it’s not the right fit for everyone, it’s one option retirees sometimes evaluate as part of a broader diversification strategy.
If you’d like to convert a portion of your existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.
To learn more about how Priority Gold can help you reduce inflation’s impact on your nest egg, download their free 2026 gold investor bundle.
Another tax-savvy way to put your money to work
The OBBBA also expanded bonus depreciation rules, which can create opportunities for investors in real estate.
For retirees looking to diversify beyond traditional savings or stock investments, this can make multifamily properties an especially attractive option. Bonus depreciation allows investors to accelerate deductions on eligible property improvements, potentially lowering taxable income in the near term.
Platforms like Lightstone DIRECT make multifamily investing straightforward, so you don’t have to source or manage properties yourself.
The platform is backed by Lightstone, a four-decade-old real estate firm with over 25,000 multifamily units and $12 billion in assets under management. By cutting out brokers and crowdfunding middlemen, Lightstone DIRECT streamlines access to institutional-quality deals, with a $100,000 minimum investment.
Featured
Residential
Columbus, OH
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Industrial
Tobyhanna, PA
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Residential
Beverly Hills, MI
These are a few examples of past properties or acquisitions from Lightstone. Explore more investment opportunities when you register with Lightstone DIRECT.
Some offerings may even be structured as single-asset 1031 exchanges, allowing accredited investors to defer capital gains while reinvesting in real estate — a strategy designed to help preserve and grow wealth over time.
And with Lightstone committing at least 20% of its own capital to every deal — roughly four times the industry average — investors can feel confident that the firm’s interests are aligned with their own.
For retirees with available capital looking for long-term growth and potential tax advantages, real estate through a platform like Lightstone DIRECT can be a way to put your money to work while taking advantage of the new depreciation provisions under the law.
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¹ The Base Annual Percentage Yield (APY) is 3.30%, as of 01/30/26, and is subject to change. If you are eligible for the overall boosted rate of 4.05% offered in connection with this promo, your boosted rate is also subject to change if the base rate decreases during the three-month promotional period. The Cash Account is offered by Wealthfront Brokerage LLC, Member FINRA/SIPC. Wealthfront is not a bank. The Base APY is representative, subject to change, and requires no minimum. Wealthfront Brokerage sweeps cash balances to Program Banks, where it earns the variable base APY and is eligible for FDIC insurance. Instant withdrawals may be limited by your receiving firm and other factors. Investment advisory services provided by Wealthfront Advisers LLC, an SEC-registered investment adviser. Securities investments: not bank deposits, bank-guaranteed or FDIC-insured, and may lose value.
² Based on the national average savings accounts interest rate of 0.39% as posted on FDIC.gov, as of March 16, 2026. Wealthfront doesn't charge wire fees for transfers to title and escrow companies or your accounts at other institutions, but the receiving entity or institution may charge a fee. For more wire info, visit wealthfront.com/transfer-agreement.
³ The Direct Deposit Plus Investing Program ("DDI Program") from Wealthfront Advisers LLC and Wealthfront Brokerage LLC (collectively, "Wealthfront") provides eligible clients a 0.25% annual percentage yield ("APY") increase above the current base APY (paid by Program Banks) on total eligible Cash Account balances. Wealthfront may change or end the program at any time and determines eligibility at its discretion. See Terms and Conditions at wealthfront.com/promo-terms.
The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
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