Trump promised not to touch Social Security — but his Big Beautiful bill comes with a $169B shock. Protect yourself

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Meddling with Social Security is generally considered politically taboo. President Donald Trump recognized this during his 2024 election campaign.

“I will never do anything that will jeopardize or hurt Social Security or Medicare… We’ll have to do it elsewhere. But we’re not going to do anything to hurt them,” he said (1) at the time.

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Unfortunately, Trump’s Big Beautiful Bill (BBB) is now poised to do exactly what he promised he wouldn’t.

In an indirect way, this signature piece of legislation actually creates a $169 billion shock impacting anyone who hopes to collect a benefit check in the future.

Here’s what you need to know about these potential consequences for your retirement.

Tax cuts mean less revenue

The BBB included several temporary tax credits and deductions (2), such as the elimination of taxes on overtime and tips and a special $6,000 deduction for seniors over the age of 65.

While it’s safe to assume that these tax reductions are popular with the narrow cohort of people who qualify for them (and up to a point), they also more broadly reduce the government’s revenue, which makes funding social programs like Social Security more difficult.

According to the Social Security Administration’s Office of the Actuary’s (OACT) (3) letter to Senator Rob Wyden, this reduction in revenue has a clear impact. “Over calendar years 2025 through 2034, the total net increase in OASDI program cost is estimated to be $168.6 billion,” says the report. “The reserve depletion date for the OASI Trust Fund is accelerated from the first quarter of 2033 to the fourth quarter of 2032.”

In simple terms: Trump’s signature policy has increased costs by $169 billion and accelerated the trust fund’s depletion from early-2033 to late-2032.

Unlike the temporary and targeted tax cuts, this impacts all workers and retirees. Trust fund depletion could unleash a 24% benefit cut on average, according to the Committee for a Responsible Federal Budget (4).

This potential cut may even impact some of the seniors who benefit from the new BBB deductions. But for younger workers who are several years away from retirement, the impact is likely to be more severe.

Still, regardless of age, there are ways to protect yourself and minimize the impact.

Read More: Millionaires under 43 hold only 25% of their wealth in stocks. Here’s where their money is actually going

Protect your retirement

If you share the worries about the government’s mismanagement of retirement funds and the economy in general, you should consider adding a safe haven asset to your portfolio for protection.

Traditionally, investors have considered gold a safe haven from reckless government spending, inflation and economic woes. That’s because the yellow metal is detached from politics and fiscal policy and retains its value better during times of crisis.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

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 uncertainty.

To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.

If you’re a homeowner, you could also consider tapping into liquidity through a Home Equity Line of Credit (HELOC). It’s a revolving line of credit that leverages the equity in your home as collateral, so that you can borrow and repay funds as needed — similar to a credit card.

AmeriSave offers a flexible HELOC that lets homeowners borrow against their equity as needed during a draw period, making it useful for renovations or debt consolidation. The application is mostly online and available in most states.

It’s a good fit for borrowers who want convenience and flexibility rather than a large lump-sum loan up-front. You can draw funds only when you need them, so it’s useful for ongoing or unpredictable costs. Interest is charged only on what you use, and you repay the balance over time. It’s essentially a flexible credit line secured by your home, delivered through a mostly online application process.

Another way to protect yourself, especially for investors with portfolios of $250,000 or more, is to hire a professional financial advisor to help you craft a resilient retirement plan. Financial decisions often become increasingly nuanced. Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often requires greater coordination and strategic planning.

In these cases, working with a financial advisor can help reduce costly mistakes.

Having an expert knowledgeable in changes to Social Security and someone who can help you incorporate them into your long-term plan can be invaluable if you’re anxious about your financial future.

But hiring an advisor can be a lifelong commitment, which might make or break your retirement. That’s why finding reliable advisors is crucial.

That’s where Advisor.com can come in. The platform connects you with an expert near you for free.

Advisor.com does the heavy lifting for you, vetting advisors based on track record, client ratios and regulatory background. Plus, their network comprises fiduciaries, who are legally required to act in your best interests.

Just enter a few details about your finances and goals, and Advisor.com’s AI-powered matching tool will connect you with a qualified expert best suited for your needs based on your unique financial goals and preferences.

Finding the right advisor isn’t always easy — there’s no one-size-fits-all solution. That’s why Advisor.com lets you set up a free initial consultation, with no obligation to hire, to see if they’re the right fit for you.

Once you’ve got the right financial advisor in your corner, the next step is getting a clear picture of where your money’s actually going. That starts with the basics — budgeting and tracking your spending.

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Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.

Politico (1); Internal Revenue Service (2); Social Security Administration (3); Center for Responsible Federal Budget (4)

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