Would you vote for a Trump second term? Do you think it will harm your life?

According to financial experts, many citizens had a fantastic economic experience between 2017 and 2021, when Donald Trump was the president of the United States. A poll from a trusted magazine revealed that Americans believed the politician was better for the country’s economy because he had helped with the cost of living in America as well as with job creation.

While the respondents to the poll mentioned above included several boomers, financial experts indicate that a Trump second term could be problematic for senior citizens’ finances. We like to judge by the facts, so here’s what experts say:

1. Help for retired people

We know that Trump loved being president, and when he was asked by journalists what he’d like to do if he were elected again, he gave a response that some liked and some didn’t.

The politician has stated that he wants to see more business tax cuts, more tariffs, and the mass deportation of undocumented immigrants. While he mentioned that he won’t eliminate Social Security or Medicare, Trump and his campaign leaders have also discussed the “waste” associated with these programs. What he might do to support Social Security’s solvency is still a mystery and it can indeed affect people who rely on this check.

Financial experts say that lower-income households and seniors could have a difficult time if shifts toward deregulation lead to reductions in social support programs or changes to Medicare and Social Security. These kinds of governmental support arrangements, which might be adjusted or reduced, are often a big support for retired citizens.

2. Half promises

Regrettably, the Trump administration failed to fulfill all its promises. According to experts, this includes trade agreements and tariffs that didn’t fully compensate for the factory jobs that were lost, as well as inefficient tax cuts that benefited corporations and the wealthy. So, what about the working class and retirees? Where are their benefits?

Trump “inflated” expectations by claiming that the tax cuts would expand by 4% to 6%, even though he had previously said they would grow by 3%. In the end, there was an average growth of 2.67% after inflation. By comparison, the average annual growth rate under President Biden is 3.4%.

While data shows that the pandemic was the reason why petrol prices and mortgage rates were lower—people were driving less and weren’t so interested in buying real estate—Trump blames his government for the decline in inflation.

We don’t want to compare the two leaders our country had, but a Trump second term might not be a great solution for people who want to work. During his mandate, the former real estate mogul added 6.7 million jobs, while Biden added 15.4 million—more than twice as many.

If we limit our analysis to manufacturing employment, Biden added 773,000 jobs while Trump brought in 461,000. These figures show that Trump under-achieved budget reduction, overestimated employment recovery, and delivered less job recovery overall—none of which is good for baby boomers. But there are many other things to talk about, so if you want to know other ways a Trump second term could impact baby boomers’ finances, keep reading!

3. Tax and tariff plans

Let’s go back to the polls because a Trump second term can significantly impact your taxes and tariff plans. Speaking of that, experts discovered several Americans think the politician will be better for the country’s economy and financial situation.

However, the research purports that Donald Trump’s measures will increase taxes for the “bottom 80% of Americans,” which is bad news for younger boomers who are having trouble saving money. Moreover, reports say that the politicians’s tariffs during his presidency will cost Americans an additional $80 billion in taxes.

If we have a Trump second term, experts say he intends to increase tariffs even further, which could result in higher costs for our citizens, especially baby boomers who might rely on their Social Security checks. As the U.S.-China Business Council says, if the former president pushes for tariffs, the US economy will shrink by $1.6 trillion over five years.

4. Inflation

We continue with the things that could happen during a Trump second administration, and this time we have to talk about inflation because it’s a big factor. Sources say the politician is interested in taking over the Federal Reserve, yet historically, greater inflation rates have been the outcome of the Fed’s decreased political autonomy.

If he undercuts the Fed’s independence and its reputation, which he’s proven he is quite likely to try to do, as experts say, it could make it very difficult to keep inflation under control. Unfortunately, increased inflation could also result from depreciating the dollar and restricting immigration, which would lower the workforce.

While we can’t exactly face inflation, the sad thing is that it affects everyone in the world, especially retirees. Some seniors don’t have an additional income source, and they might rely solely on their Social Security checks to help them pay housing, bills, and groceries.

5. Climate change

Another way a Trump second term could impact your finances is through legislation regarding climate change. According to an Oxford Economics analysis, under Biden legislation, renewable energy is predicted to support 68% of US electricity production by 2050, but under Trump, that percentage could drop as low as 58%.

Some experts say that any American efforts to combat climate change could be effectively eliminated under the Trump presidency. Since climate change affects the entire planet, these decisions could have several economic and social impacts. Even though it might be hard to see the association between climate change and baby boomers’ finances, there is a connection: environmental issues can cut average incomes by 20%.

Moreover, severe temperatures and weather catastrophes, such as fires, tsunamis, and floods, can damage people’s properties. With inflation already high and with retirees who don’t have an additional income source, paying for urgent repairs could be problematic.

How could you prepare for a Trump second term?

Even if we still have no idea who’s going to rule our beautiful country for the next four years, we all want to live a happy and comfortable life. As experts say, retirees should take precautions now to ensure they will have adequate financial resources regardless of the future president.

Knowledge is indeed power, and in these uncertain times, retirees must stay up-to-date on policy discussions and think about financial planning strategies that offer flexibility in the face of potential changes. Make sure you save as much as you can without compromising (we have many tips on our website, so check it out) and read this book to understand how important political decisions are for our everyday lives.

Other than that, diversifying your income sources, carefully planning for tax season, not following trends, and keeping up with policy developments can help you avoid any challenges, regardless of whether Trump has a second term or not.

Would you vote for a Trump second term? Which politician do you think would be a great fit for our country? Let us know in the comments below! If you find this article helpful and would like to check out something else from Retired in USA, here’s a wonderful post for you: Learn 4 Tax-Smart Strategies for Your Account Withdrawals