How Trump's 'One Big Beautiful Bill' could force some older workers to delay retirement — what to do to protect your savings

Rebecca HollandFri, February 27, 2026 at 5:30 PM UTC

0

An older man drinking coffee on a bench outside.

Some workers who are approaching retirement may need to change their plans thanks to President Donald Trump’s “One Big Beautiful Bill” — including when they retire.

Due to the introduction of new work requirements for Medicaid and the Supplemental Nutrition Assistance Program (SNAP), Americans may need to remain in the workforce longer to maintain much-needed access to health care and food stamps.

Must Read -

Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

Approaching retirement with no savings? Don’t panic, you're not alone. Here are 6 easy ways you can catch up (and fast)

Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself

The bill’s changes to Medicaid include mandatory work requirements for many individuals aged 19 to 64, who will need to complete 80 hours per month at a job, a work program or job training, attending school at least part time or participating in community service activities.

Prior to the new legislation, federal law prohibited work requirements for Medicaid, though some states had implemented their own rules through waivers, according to KFF (1). The organization notes the legislation largely applies to states enrolled in the Affordable Care Act Medicaid expansion (2). States have until Jan. 1, 2027, to adopt the new requirements.

For the SNAP program, work requirements, which went into place Feb. 1, now impact adults between the ages of 55 and 64, as well as adults with children over the age of 14. They must also work at least 80 hours a month or see their benefits reduced to three months over three years.

Unfortunately, those who are retired or nearing retirement and not yet 65 may get caught in the middle of these changes. Here’s how these individuals can prepare for the changing eligibility rules.

Interrupted retirement plans

For many, the years between early retirement and Medicare eligibility can be financially precarious. Those who retire before age 65 may have to fund their own health insurance if they no longer qualify through their former employer or a spouse. This could affect when they apply for Social Security retirement benefits — if they need the extra income before they reach full retirement age (67 for those born after 1960), they may end up with a permanently reduced benefit.

Some low-income retirees previously used Medicaid to bridge the gap until they qualified for Medicare, but that may no longer be possible unless they return to work. And that prospect can be a challenge for many.

Read More: Non-millionaires can now invest in this $1B private real estate fund starting at just $10

Advertisement

Read More: Warren Buffett’s 8 simple and repeatable rules to get rich (and stay rich) in America

“A substantial portion of the people taking early retirement are doing so because they basically are having a hard time staying in the workforce,” Jack Smalligan, senior policy fellow at the Urban Institute, told CNBC (3).

He noted that higher-income individuals tend to have better health and can work longer in life, while the opposite can be true for those with lower incomes.

It’s also worth noting that many of the most easily accessible jobs tend to involve a certain level of physical labor that may be difficult to achieve for older workers.

Reassessing your retirement plan

If you’re an older individual who was intending on using these one or both programs in early retirement, or you’re presently caught up in the changes, your personal savings may matter now more than ever. It may also be time to adjust your budget and spending.

If you’re not able to register for health insurance through your old employer or spouse, extending your coverage via the federal program COBRA may be an option. This can offer up to 18 months of additional coverage, and you must apply within 60 days of your employer benefits ending. Note, however, your premiums may increase. Otherwise, a marketplace plan through the Affordable Care Act is another insurance option.

As for food assistance, many cities have charitable, community-driven options to help feed those who are hungry. Local pantries can provide some food options. Churches or community centers may also have programs to help people access meals.

For those who plan to return to work, look into any job training or other programs provided by your city or state. There may be some particularly geared toward senior citizens. Look for Senior Services or a local Departments of Aging.

What To Read Next -

Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’

What's your worth? Here are the 3 net worth milestones that change everything for Americans (and what they say about you)

Mega-rich Americans are ditching stocks and hoarding historic highs of cash. Here’s where their wealth’s going instead

Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Article sources

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

KFF (1, 2); CNBC (3)

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

Original Article on Source

Source: “AOL Money”