In the News
HOW THE SPRAWLING ‘ONE BIG BEAUTIFUL BILL’ MAY IMPACT YOU
The nearly 900-page One Big Beautiful Bill signed by President Donald Trump in July will affect the lives of older Americans in many ways, say AARP policy experts and others.
Here’s a look at key provisions.
▶︎ Taxes. The act makes permanent the reduced income tax rates enacted during Trump’s first term. Another key provision, backed by AARP, provides a $6,000 bonus deduction for older adults (see box below).
▶︎ Affordable Care Act (ACA) plans. The legislation imposes new documentation requirements on the roughly 5.5 million adults ages 55 to 64 who have an ACA plan. Those changes “will add more red tape for enrollees and further drive down coverage,” AARP Chief Advocacy and Engagement Officer Nancy LeaMond said in a letter to Senate leaders.
▶︎ Medicaid eligibility. The act sets new work requirements that can disqualify a person from enrolling in Medicaid and creates additional red tape to show compliance. Medicaid-eligible recipients ages 19 to 64 who apply for coverage or receive coverage through the ACA would have to work at least 80 hours per month or fulfill similar criteria. The AARP Public Policy Institute found that 9.2 million Medicaid recipients ages 50 to 64 would face these requirements.
▶︎ Food assistance. In 2023 more than 11 million people age 50 and older received food aid through the Supplemental Nutrition Assistance Program (SNAP), previously known as food stamps. Starting in October 2027, most states will have to pay 5 to 15 percent of the cost of the SNAP benefits their residents receive. The new legislation also raises the age limit for work requirements to be eligible for SNAP benefits from 55 to 64. That means many people up to age 64 will be required to work at least 20 hours per week to receive benefits for more than three months in three years.
NEW TAX RELIEF FOR OLDER AMERICANS
Millions of taxpayers 65 and older get a break for tax years 2025 through 2028. Here’s what you need to know about the new deduction.
▶︎ Who is eligible? You must be at least 65 years old by the end of the tax year and have a modified adjusted gross income (MAGI) of less than $175,000. If you’re married and filing a joint return, your spouse can also claim the deduction if they’re 65 or older and your combined MAGI is less than $250,000.
▶︎ How much is it? $6,000 per eligible taxpayer. For married couples filing jointly, it’s $12,000 if both spouses are 65 or older. The deduction is cut by 6 percent for MAGI over $75,000 ($150,000 for a couple) and can’t be claimed at all if it’s more than $175,000 ($250,000 for a couple).
▶︎ Does it replace the existing extra standard deduction for people 65 and older? No. The new deduction is in addition to the existing break.
▶︎ What if I’m itemizing? You can claim the new deduction regardless of whether you itemize your taxes or claim just the standard deduction.
▶︎ Does this mean Social Security benefits are no longer taxed? No. The new law contains no provision ending taxation of Social Security benefits or changing how those taxes are calculated.
Social Security, Medicare Face Early Shortfalls
The trust funds that Social Security and Medicare beneficiaries count on for financial support and health will run out of money sooner than projected unless lawmakers act, according to the 2025 annual trustee reports.
▶︎ The trusts that fund Social Security will run out of money by 2034, a year earlier than estimated in last year’s report. If the trust funds are depleted, beneficiaries will get only 81 cents for every dollar now received.
▶︎ The trust fund that pays for Medicare Part A, which covers inpatient hospital care, will be depleted by 2033, three years earlier than projected in 2024, unless the law is changed. If it isn’t, the Hospital Insurance Trust Fund’s reserves will be able to pay 89 percent of scheduled benefits, trustees said.
AARP is urging Congress to protect Social Security. Go to aarp.org/WeEarnedIt to join the fight.
Lifestyle Changes Can Help Ward Off Dementia
Exercising, eating right and staying socially engaged can improve thinking and memory in people at risk for dementia, a major new study confirms.
The results of that study were released in late July at the annual Alzheimer’s Association International Conference in Toronto.
For the study, 2,111 volunteers with an average age of 68 were randomly assigned to adopt either an intensive, highly structured lifestyle-change program or a self-guided program with less support. Those who followed the more intensive regimen appear to have slowed cognitive decline.
Behavioral changes included increasing physical exercise, adopting a healthy diet, maintaining social ties, engaging in online “brain training” sessions and attending regular checkups to monitor cardiovascular health.
The findings were published in the medical journal JAMA. The study is part of a $150 million research effort funded by the Alzheimer’s Association and the National Institute on Aging.
IMMORTAL SHROOMS?
Decades after psilocybin, found in some mushrooms, fueled illegal psychedelic trips in the 1960s, a study shows the drug extends the life of human cells by 57 percent and boosts the survival rate of aging mice. That suggests it may have antiaging properties, says research published by NPJ Aging.