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Nearly two full years since “no tax on Social Security” became a presidential campaign slogan, retirees collecting benefits are still paying taxes.
Despite the passing of President Donald Trump’s signature One Big Beautiful Bill Act in July 2025, it “does not include this provision,” according to the Tax Foundation (1).
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Instead, the bill includes something much narrower: a special and temporary tax deduction spread across different income bands. And the structure of this deduction has far-reaching impacts for all taxpayers, even those who are years away from retirement or claiming benefits.
Here’s what you need to know.
Implications of the enhanced deduction for retirees
The enhanced deduction for older Americans applies to those beneficiaries above a certain age (65) and can only be claimed between 2025 and 2028, according to the IRS (2). There’s also income thresholds. The deduction phases out for taxpayers with modified adjusted gross income over $75,000, or $150,000 for joint filers.
Because of these narrow parameters, the Tax Policy Center (3) estimates that the tax reduction will “benefit fewer than half of older adults.” And even for those who qualify, they just receive a tax reduction, not elimination.
This reduction also cuts the program’s revenue by roughly $91 billion over its four-year term, according to analysis by the Joint Committee on Taxation, as cited by the Peter G. Peterson Foundation (4). This, along with several other tax cuts implemented by the OBBBA, accelerated the Social Security trust fund’s depletion to 2032, one year earlier than anticipated, according to the Bipartisan Policy Center (5).
Simply put, some beneficiaries will see their taxes reduced temporarily, but all beneficiaries could see their benefits cut over the long term, unless Congress intervenes. The Committee for a Responsible Federal Budget anticipates that retirees could face a 24% benefit reduction (6).
Since Social Security’s future is highly unpredictable, the best way to prepare might be to make your retirement plan less reliant on benefits in the first place. Diversifying into alternative assets that offer inflation protection, tax advantages or reliable passive income could be the smart money move.
For those worried about the government’s chronic fiscal deficits, gold could be one such safe haven. This environment of sovereign debt concerns favors the yellow metal, according to investment firm Sprott (7).
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainty.
To learn more, you can get a free information guide that includes details on how to get up to $10,000 in free silver on qualifying purchases.
Diversify with your portfolio real estate
For those worried about passive income in retirement, rental property could be a potential solution. For example, platforms like Arrived have democratized this asset class, so you can invest as little as $100 to start collecting rental income from a robust portfolio of vacation homes and apartments.
Another platform that offers fractional ownership in blue-chip rental properties is mogul. Founded by former Goldman Sachs real estate investors, the mogul team handpicks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional-quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10% to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Get some professional help
For older Americans with a relatively sizable portfolio of retirement savings, these tax and diversification strategies may need a professional touch. Managing withdrawals, minimizing tax exposure and ensuring long-term sustainability often require greater coordination and strategic planning.
In these cases, working with a financial advisor can help reduce costly mistakes.
Especially if you have a portfolio of $250,000 or more, platforms like WiserAdvisor can connect you with vetted professionals who specialize in this kind of planning.
Simply answer a few questions about your savings, retirement timeline and overall investment portfolio. From there, WiserAdvisor reviews its network to match you — for free — with up to three vetted, reputable advisors aligned with your specific needs.
WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties, and specific financial results are not guaranteed.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see ourethics and guidelines.
Tax Foundation (1); Internal Revenue Service (2); Tax Policy Center (3); Peter G. Peterson Foundation (4); Bipartisan Policy Center (5); Committee for a Responsible Federal Budget (6); Sprott (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
