Latest news with #RetirementGenius
Yahoo
an hour ago
- Business
- Yahoo
Trump's ‘Big Beautiful Bill' Would Slash Medicaid & SNAP: 3 Moves Retirees Should Make Now
President Donald Trump's 'one big beautiful bill' has passed in the House and is now awaiting Senate approval. If passed, Trump's signature bill would extend the tax cuts granted by the 2017 Tax Cuts and Jobs Act and add additional tax cuts. While this might be welcome news to many, the bill also includes changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) that could threaten seniors' access to these programs. Find Out: Read Next: 'The 'one big beautiful bill' passed by the House of Representatives, if it were passed into law today, would cut Medicaid and SNAP by a combined $1 trillion,' said Chris Orestis, president of Retirement Genius. 'In addition, because of the increase to federal debt of as much as $5 trillion, the bill would trigger an automatic reduction in Medicare funding of $500 billion,' he continued. 'This would represent the largest cut to social services and health insurance for the poor, disabled, children and the elderly in U.S. history.' Here's a look at the changes retirees can make now to secure care and avoid benefit disruptions if the bill were to pass. Before changes go into effect, check with your healthcare providers to ensure there won't be any interruption to your care if there are cuts to Medicaid. 'Check with your healthcare provider to see if they might cut back on services or cease accepting Medicaid-funded patients, and contact any nursing home where you or a loved one may reside to find out if they will be reducing the number of patients they can support — or even [if they are] possibly planning to close,' Orestis said. Knowing this ahead of time will allow you to find alternative care providers before it's too late. Learn More: If you are reliant on SNAP, start searching for alternatives that may be able to provide food assistance in the event your benefits are reduced or cut. 'Make sure you know where there are local support services through community or faith-based organizations to replace lost access through SNAP,' Orestis said. Many retirees plan to 'spend down' their savings so that they qualify for Medicaid to pay for their long-term care. However, this may no longer be a viable option. 'If you are considering going onto Medicaid for long-term care and are preparing to engage the 'spend down' process to impoverish yourself and get below the poverty level to qualify, you may want to reconsider that strategy, and instead look to leverage private pay resources to pay for your care,' Orestis said. 'If you are on Medicaid, you will primarily be reliant on nursing homes for your care, and their ability to withstand these cuts will be very challenging and up in the air,' he continued. 'If you are private pay, you are in control and can decide where and when you will receive care, such as at home or an assisted living community not funded by Medicaid.' Strategies to stay private pay for long-term care would include long-term care insurance, annuities, a life insurance settlement, a reverse mortgage or VA 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 More From GOBankingRates Clever Ways To Save Money That Actually Work in 2025 This article originally appeared on Trump's 'Big Beautiful Bill' Would Slash Medicaid & SNAP: 3 Moves Retirees Should Make Now
Yahoo
17 hours ago
- Business
- Yahoo
Trump's ‘Big Beautiful Bill' Would Slash Medicare & SNAP: 3 Moves Retirees Should Make Now
President Donald Trump's 'one big beautiful bill' has passed in the House and is now awaiting Senate approval. If passed, Trump's signature bill would extend the tax cuts granted by the 2017 Tax Cuts and Jobs Act and add additional tax cuts. While this might be welcome news to many, the bill also includes changes to Medicaid and the Supplemental Nutrition Assistance Program (SNAP) that could threaten seniors' access to these programs. Find Out: Read Next: 'The 'one big beautiful bill' passed by the House of Representatives, if it were passed into law today, would cut Medicaid and SNAP by a combined $1 trillion,' said Chris Orestis, president of Retirement Genius. 'In addition, because of the increase to federal debt of as much as $5 trillion, the bill would trigger an automatic reduction in Medicare funding of $500 billion,' he continued. 'This would represent the largest cut to social services and health insurance for the poor, disabled, children and the elderly in U.S. history.' Here's a look at the changes retirees can make now to secure care and avoid benefit disruptions if the bill were to pass. Before changes go into effect, check with your healthcare providers to ensure there won't be any interruption to your care if there are cuts to Medicaid. 'Check with your healthcare provider to see if they might cut back on services or cease accepting Medicaid-funded patients, and contact any nursing home where you or a loved one may reside to find out if they will be reducing the number of patients they can support — or even [if they are] possibly planning to close,' Orestis said. Knowing this ahead of time will allow you to find alternative care providers before it's too late. Learn More: If you are reliant on SNAP, start searching for alternatives that may be able to provide food assistance in the event your benefits are reduced or cut. 'Make sure you know where there are local support services through community or faith-based organizations to replace lost access through SNAP,' Orestis said. Many retirees plan to 'spend down' their savings so that they qualify for Medicaid to pay for their long-term care. However, this may no longer be a viable option. 'If you are considering going onto Medicaid for long-term care and are preparing to engage the 'spend down' process to impoverish yourself and get below the poverty level to qualify, you may want to reconsider that strategy, and instead look to leverage private pay resources to pay for your care,' Orestis said. 'If you are on Medicaid, you will primarily be reliant on nursing homes for your care, and their ability to withstand these cuts will be very challenging and up in the air,' he continued. 'If you are private pay, you are in control and can decide where and when you will receive care, such as at home or an assisted living community not funded by Medicaid.' Strategies to stay private pay for long-term care would include long-term care insurance, annuities, a life insurance settlement, a reverse mortgage or VA 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 More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on Trump's 'Big Beautiful Bill' Would Slash Medicare & SNAP: 3 Moves Retirees Should Make Now
Yahoo
31-05-2025
- Business
- Yahoo
6 Things Experts Say Could Happen To Social Security Over The Next 10 Years
Social Security benefits are a source of income for 68 million seniors, totaling more than $1.5 trillion in payouts annually, according to the Social Security Administration (SSA). So, the fact that it will become insolvent in 10 years is, to say the least, concerning. Discover More: For You: 2035 isn't all that far into the distant future, and the problem is a tough one to solve, said Chris Orestis, president at Retirement Genius and a national retirement expert. 'To keep these programs sustainable, you need three or more workers paying taxes for every one person collecting benefits. That ratio is shrinking, and the negative fiscal impact is growing,' he said. He added that because this is unsustainable, and such a large problem, a combination of changes to the program is likely on the horizon. So far in 2025, there have been a lot of changes and shake-ups to government spending, agencies and assistance programs. President Trump and his administration have declared they will protect Social Security but have also made claims that could directly contradict that fact. Here are a few key takeaways: Not only is 2035 a very loose deadline, but it also looks like the unfortunate finish line could be getting closer. There have been proposals for sweeping benefit cuts for retired workers and survivor beneficiaries by 2033. The plan to boost some retirees' Social Security checks in the short term would also exacerbate Social Security's long-term cash deficit and expedite the timeline even more. The SSA announced another plan to institute new identity verification procedures for those who wanted to apply for benefits. Once these changes take effect, you'd have to visit a field office instead of doing so over the phone and have someone verify your identity before you could submit your application. This could be quite problematic for older senior citizens who have difficulty getting around. President Trump also reinstated the 100% overpayment recovery rate that had been in place prior to 2024, which enabled the SSA to withhold all of a person's future checks to recoup an accidental overpayment. Here are six potential changes that are coming to Social Security sooner than you think. Find Out: Currently, the income cap on paying into Social Security is set at $175,100. In other words, any earnings over that amount are not taxed for Social Security. 'I think there's a good chance we'll hear more about raising or eliminating the income cap on Social Security taxes,' said Paul W. Carlson, an investment and retirement expert and managing partner at Law Firm Velocity. 'There's a lot of chatter about how higher earners should contribute more,' he said. 'This idea has broad public support and could help ensure that higher earners contribute their fair share.' Right now, the payroll tax rate is set at 12.4%. If you are employed, your employer pays half of this, and you, the employee, pay the other half. If you are self-employed, congratulations, you pay it all. Raising this percentage would, of course, bring in more revenue. 'An increase could help shore up funds,' said Carlson. 'But might not be popular since no one likes higher taxes.' So, count this low on the list of likely changes. These are the small increases in benefit amounts that help Social Security keep pace with inflation. For instance, for 2025, the COLA increase is 2.5%. Reducing or eliminating these would reduce payouts. But, said Carlson, that would be a hard sell. 'Many people depend on these adjustments to maintain their quality of life, especially seniors who often face rising healthcare costs,' he said. 'If cuts were made, we could see a lot of pushback from the public and advocacy groups.' The full retirement age is the age set by the government when workers are eligible to receive their full benefits based on their income history. Taking benefits before that age results in a reduced amount. Both Carlson and Orestis said that any change here would have to be nuanced. 'It's already been pushed back to 67 for those born in 1960 or later,' said Carlson. 'Increasing it further would mean people have to wait longer to receive full benefits. That might not sit well with many who are ready to retire but need those benefits sooner.' Orestis agreed. 'The more likely approach to raise the retirement age would be to issue a reduced benefit and/or increased retirement age schedule targeted at a point in the future that would impact people not yet on the program,' he said. On the campaign trail, then-presidential candidate Donald Trump promised to eliminate income taxes on Social Security. According to the Social Security Administration, about 40% of people who receive Social Security benefits must pay income tax on them, usually because of other income sources increasing their annual earnings. In 2023, that generated nearly $51 billion for the fund. 'In the short term, this plan would offer relief only to high-income seniors. Lower-income seniors who don't meet the income threshold for Social Security taxes would see no benefit as they already don't pay into this tax,' said Orestis. He said it would also increase financial pressure on workers who would likely bear the burden of funding this gap through higher payroll taxes. And worse, it would jeopardize the program's solvency over the long term. So, like many political promises, this one might be conveniently forgotten. This, of course, is the doomsday scenario that everyone wants to avoid: the 20% cut in benefits that insolvency in a decade will force, according to Congress's Ways and Means Committee. 'Honestly, if we don't see any changes, yes, we could be looking at a 20% cut in benefits starting in 2034,' said Carlson. 'People need to understand that once the funds are depleted, the law says they can only pay out what they take in from taxes. So, if nothing is done, everyone's checks will shrink significantly. It's a scary thought for anyone relying on Social Security for their retirement income.' And for better or worse, that nuclear option will likely force a combination of changes. Caitlyn Moorhead contributed to the reporting for this article. More From GOBankingRates The New Retirement Problem Boomers Are Facing This article originally appeared on 6 Things Experts Say Could Happen To Social Security Over The Next 10 Years Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
