The Trump Economy Begins: 3 Things That Could Get Less Expensive for Retirees in 2025
Written by
Lydia Kibet
Edited by
Levi Leidy
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President Donald Trump’s return to the White House could usher in some positive changes for retirees. During his campaign, Trump proposed policy changes that could help retirees put more money into their pockets and enjoy their golden years. Here are three things that could become less expensive for retirees under the Trump administration.
Taxes
The elimination of taxes on Social Security could be one of the most direct ways retirees benefit under the Trump administration. Currently, 50% to 85% of Social Security benefits are taxable for retirees who exceed certain income thresholds. For example, single retirees with a combined income over $25,000 and $32,000 for couples filing jointly could see up to 50% of their benefits become taxable. And individuals with a combined income of more than $34,000 and $44,000 for couples — up to 85% of their benefits may be taxable.
“If Trump brings back tax cuts or makes any changes that reduce the tax burden on the retired folks, that’s more money staying in their pockets. More cash flow, less stress,” said Lucas Barcelo, founder of Thrivin Life. This could mean hundreds or even thousands of extra dollars annually, which retirees can channel to other essential expenses like groceries, utilities and healthcare.
However, eliminating taxes could accelerate the insolvency date of Social Security trust funds. Keep in mind that the government uses taxes to fund the benefits, so without this revenue, Social Security may run out earlier than the said 2035.
Prescription Drugs
Healthcare expenses often put a strain on retirees’ pockets. But with Trump in office, prescription drugs will likely be less expensive.
“Trump made a lot of noise about lowering drug prices before, and there was some progress in getting more competition into the mix. If he picks that back up and continues to rally on the idea, retirees might finally see their out-of-pocket costs for meds go down quite a bit. That would be a huge win, especially considering how much of their budget goes toward healthcare. This would be a much-needed change for the retired community,” added Barcelo.
Trump also vowed that he won’t make any cuts to Medicare benefits, meaning seniors won’t lose access. That said, “many retirees will see an immediate impact with a $2,000 cap on Medicare Part D out-of-pocket drug costs. This is a significant cost for many retirees. While Trump shouldn’t get any credit for it, many retirees will see this cost-saving coinciding with his inauguration,” said Tyler Meyer, founder of Retire to Abundance.
Gas and Energy
Gas and utility bills are the most common household expenses for many retirees. Saving money on these expenses would mean extra cash for other essentials.
“Trump has been quoted saying, ‘Drill baby, drill.’ It’s a simple economic principle that if we are producing more oil and gas, we should see its cost reduced. Trump’s energy-friendly policies should lead to lower gas pump and utility bill costs,” Meyer said.
Barcelo also thinks that if Trump pushes for more domestic oil and gas production, we might see lower prices at the pump and utilities like air conditioning. “Cheaper energy usually means lower utility bills, and that’s something retirees definitely appreciate. Less money spent keeping the lights on means more left over for other stuff.”
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