How President Trump's First 100 Days May Affect Retirement Planning

How Retirees Can Prepare In 2025

Well away from the early days of post-election predictions, we’ve officially surpassed the first 100 days of the new Trump Administration. In a word, it’s been tumultuous. Waves of executive orders, major cuts across federal agencies, and spikes in market volatility have already made impacts on the economic landscape of the United States.

Many Americans, especially those thinking about retirement, may be wondering what these shake-ups mean for them. Are my savings affected? Should I be concerned about my 401(K)? Should I adjust my retirement planning strategy? In this article we’ll walking through the main Trump Administration actions, policies affecting the economy, and what they mean for your 401(k) and retirement savings plans.

Tariffs and the Stock Market

Tariffs have been an ongoing fixation for the Trump Administration. President Trump first imposed tariffs on Mexico and Canada in March and followed up with sweeping reciprocal tariffs announced in April against dozens of countries around the globe.

President Trump’s roll out of tariffs have triggered significant market reactions including a steep stock market plunge in April. After all the dust has settled, the numbers aren’t promising with the Dow Jones Industrial Average down 6.8% and S&P 500 down 7.3% during President Trump's first 100 days—the sharpest decline since Nixon’s second term in office.

For retirement savers, this serves as a strong reminder of the importance of diversification. Including more stable assets, like fixed annuities in your financial portfolio, can help weather the storm when faced with market volatility.

Social Security

In the first 100 days the Trump Administration has proposed changes that could influence Social Security. Like several other federal agencies, the Social Security Administration (SSA) is slated for a 12% reduction of their workforce or elimination of around 7,000 jobs. Already facing a 50-year low in staffing, there could be real impacts on how SSA serves its largest ever generation of retirees, Baby Boomers. Staffing cuts could impact to SSA’s ability to distribute benefits and limit or eliminate local field offices for accessible to retirees.

Additionally, President Trump has discussed ending the taxation of Social Security benefits, but that policy has not been put into action. Securing funding for Social Security remains a major issue for the Trump Administration, and following presidential administrations, with the Social Security trust fund projected to run out of funds by 2035. Social Security is clearly an important source of income for most retirees in the US. Securing a steady income from other investments, like annuities, is important for peace of mind in retirement.

Tax Policy

How have taxes changed in President Trump’s first 100 days in office? Not much yet, but there is legislation to watch out for. The Trump Administration still plans to extend the 2017 Tax Cuts and Jobs Act (TCJA), which is scheduled to expire at the end of 2025. This legislation originally lowered individual income tax brackets, raised the standard deduction, and cut the corporate tax rate to 21%.

Along with the TCJA President Trump has also proposed eliminating taxes on Social Security benefits, overtime pay, and tips. Whether or not any of these additional tax reforms go through will depend on legislative action from Congress.

Annual Retirement Age Increase

Although not directly tied to President Trump’s policies, the full retirement age (FRA) for Social Security is continuing its gradual increase. FRA is the age at which individuals can claim full Social Security benefits, based on their work history and lifetime earnings. This is decided annually by the Social Security Administration.

For individuals born after 1959, the FRA is now set at 67. If you have an earlier birthday, you can still claim full benefits at a slightly younger age. Anyone can claim Social Security benefits as early as age 62, but the trade-off of claiming early means you lock in benefits at a lower monthly payment.

How to Adjust Your Retirement Strategy to the New Administration

Whether you’re just starting to save or already enjoying retirement now may be time to check in on your strategy. Here are some ways to stay on track, no matter your age or stage of life:

• In your 20s to 40s: Even with market volatility, it’s important to stay invested. Time is on your side, and compound growth can work wonders over the long term.
• If you're nearing retirement: Stay the course but consider dialing down risk by adding more stable investments to your portfolio.
• Think long term: Market dips can be scary, especially when retirement funds are one the line. Still, it’s best to not make sudden financial moves. Consult with a trusted financial advisor who can help you methodically adjust strategy instead of reacting in the moment.
• Diversify your portfolio: Spread your investments across stocks, bonds, mutual funds, ETFs, and alternative assets to help reduce overall risk.
• Consider annuities: Products like fixed annuities can help provide steady income that’s safeguarded from market volatility.

What Retirees Can Do Now

The Trump Administration’s first 100 days of the Trump Administration has brought its share of uncertainty, but the key to retirement planning remains the same: stay informed, stay diversified, and think long term. Having a trusted financial advisor and reliable financial tools—like Canvas annuities—can help you stay on track for the retirement you want.