Taxes are going to change for retirees under Trump’s ‘big beautiful bill’ — why you can’t afford to waste time

Moneywise

Mar 23, 2026

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.

Priority Gold

Diversify your retirement fund with a precious metals IRA

Learn more

at prioritygold.com

Advisor

Connect with a vetted financial advisor near you

Learn more

at advisor.com

Wealthfront

Earn up to 4.30% APY, and no account fees

Learn more

at wealthfront.com

CD Valet

Earn higher returns than a traditional savings account

View rates

at cdvalet.com

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.

Advisor

Connect with a vetted financial advisor near you

Learn more

at advisor.com

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 Wealthfront Cash Account, for instance, currently offers a base variable APY of 3.30%, and new clients can get an extra 0.75% during their first three months on up to $150,000 for a total variable APY of 4.05%¹.

That’s ten times the national deposit savings rate, according to the FDIC’s January report².

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, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.

Wealthfront

Earn up to 4.30% APY, and no account fees

Learn more

at wealthfront.com

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.

CD Valet

Earn higher returns than a traditional savings account

View rates

at cdvalet.com

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.

One practical place to start is reviewing recurring bills. Insurance, in particular, is an area where rates can drift higher over time without much notice. 

Comparison tools like OfficialCarInsurance.com allow drivers to conveniently check rates across major providers such as Progressive and GEICO, sometimes uncovering meaningful savings with relatively little effort.

The process is 100% free and won’t affect your credit score. In just a few clicks, you could pay as little as $29 a month.

Just enter a few basic details below, and you'll instantly get a selection of quotes to choose from.

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.

Figure

Find low rates to access your home equity

View rates

at figure.com

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 home equity isn’t a one-size-fits-all solution. Both HELOCs and reverse mortgages come with trade-offs, particularly when it comes to interest costs and the impact on your estate. 

But for retirees facing rising health care expenses, they can be worth evaluating as part of a broader financial plan, especially when other sources of support may be tightening.

Longbridge

Explore home equity solutions

Learn more

at longbridge-financial.com

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.

Priority Gold

Diversify your retirement fund with a precious metals IRA

Learn more

at prioritygold.com

More money moves to make

Ethos

Life Insurance

Get life insurance in 5 minutes starting at just $2/day.

Learn more

Figure

Home equity loans

Tap into your home equity to pay off debt or fund a renovation.

Find offers

Freedom Debt Relief

Debt relief program

Talk to a certified expert for free, and get rid of your debt.

Learn more