Here’s How President Trump’s Many Executive Orders Could Impact Retirees
Written by
Kerra Bolton
Edited by
Molly Sullivan
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Starting on his first day back in The White House, President Donald Trump has issued a flurry of executive orders that could significantly impact retirees’ finances. From investment policy changes to tariffs that could drive up prices, Trump’s executive orders could affect everything from retirement savings to grocery costs.
“Retirement should be about enjoying your golden years instead of worrying about money, but with all the potential policy changes, it’s easy to feel like you’re chasing your tail,” said Kraig Kleeman, founder and CEO of The New Workforce.
Trump signed more than 20 executive orders on his first day. Here’s how they could affect retirees.
Reshaping Retirement Investments
What’s changing: Trump announced a federal government fund to invest $5.7 trillion in federal assets and build national wealth. The administration said sovereign funds are common worldwide and that a U.S.-based one could help “lessen the burden of taxes” and promote “long-term economic security.”
How it affects retirees: Details are still emerging. However, economists at the Peterson Institute for International Economics said the fund could affect public pensions, Social Security investments and stock market trends if the U.S. sovereign wealth fund prioritizes domestic investments, directs capital toward specific industries or supplements Social Security reserves.
What retirees can do: Diversify investments to protect against market volatility caused by the fund’s influence. Monitor Social Security discussions to see if the fund impacts benefits. Adjust household budgets for inflation if the fund contributes to rising costs.
Reinstating Tariffs
What’s changing: As of Feb. 10, Trump reinstated the full 25% tariff on steel imports and increased tariffs on aluminum imports to 25% to “strengthen America’s manufacturing industry.”
How it affects retirees: Wayne Winegarden, an economist at the Pacific Research Institute, said tariffs are taxes. “When imposed on products like steel, those price increases will be large and pervasive. Tariffs will make the cost of living less affordable and worsen retirees’ living standards.”
What retirees can do: Look for domestic alternatives to imported goods that could face higher tariffs, such as electronics, cars and trucks, canned goods and household appliances. Buy in bulk and use discount programs to offset price increases.
Reversing Biden-Era Drug Pricing Rules
What’s changing: Trump reversed numerous Biden-era executive orders, including one affecting Medicare drug price negotiations, potentially limiting the federal government’s ability to negotiate lower prices for retirees.
How it affects retirees: According to PolitiFact, “Trump’s revocation of Biden’s 2022 order ends the testing of three new models to lower drug costs. But it doesn’t reverse the Inflation Reduction Act provisions.” These provisions include those affecting price negotiations with drug companies for the most commonly used drugs.
What retirees can do: Use discount programs or manufacturer coupons to lower prescription drug costs. Ask doctors about generic or lower-cost alternatives to expensive brand-name prescriptions. Use open enrollment periods to compare plans and find the most cost-effective options.
Deregulating Businesses
What’s changing: Trump launched a deregulation initiative to eliminate 10 regulations for every new one implemented.
How it affects retirees: Deregulation is a double-edged sword. While it may stimulate economic growth in some sectors and improve the performance of investment portfolios, removing regulations could reduce consumer protections, especially in financial services, healthcare and environmental standards.
What retirees can do: Christopher Stroup, founder and CEO of Silicon Beach Financial, said, “Retirees should stay informed, diversify their investments, consult trusted financial advisors and ensure they have safeguards like insurance and emergency funds in place.”
Additionally, retirees should stay informed about which regulations are being changed and understand how they might affect consumer rights and benefits.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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