Social Security, Retirement Savings: What Trump Said in the State of the Union

President Donald Trump, in his Feb. 24 State of the Union address, highlighted new protections for Social Security recipients and pledged to safeguard the nation’s largest retirement program.

Kelly McBride Ni

Published: 2/25/2026, 9:52:46 PM EST

Social Security, Retirement Savings: What Trump Said in the State of the Union — Blank Social Security checks are run through a printer at the U.S. Treasury printing facility in Philadelphia, Pa., on July 18, 2011. (William Thomas Cain/Getty Images)

President Donald Trump, in his Feb. 24 State of the Union address, highlighted new protections for Social Security recipients and pledged to safeguard the nation’s largest retirement program.

“We’re also working to make it easier for Americans to save for retirement. And under this administration, we will always protect Social Security and Medicare,” Trump said during the address. “They are not protecting it for our seniors. We will always protect Social Security, Medicare, Medicaid.”

He said his administration and Republican majorities delivered sweeping tax changes, including “no tax on Social Security for our great seniors,” a reference to the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. The OBBBA includes a temporary $6,000 tax deduction for seniors.

Before the change, Social Security benefits could be subject to federal income tax depending on a recipient’s combined income, according to the Social Security Administration (SSA).

After the passing of the bill last year, the SSA said, “The bill ensures that nearly 90 percent of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation's economy.”

Trump said taxes on tips and overtime pay have also been eliminated under the law.

In addition to tax changes, Trump announced a new retirement savings initiative aimed at workers without employer-sponsored retirement plans.

Trump said despite 401(k)s doing well for some people, “half of all of working Americans still do not have access to a retirement plan with matching contributions from an employer.”

He said his administration would provide access to a federal-style retirement plan and “match your contribution with up to $1,000 each year, as we ensure that all Americans can profit from a rising stock market."

Social Security was created in 1935 and provides retirement, disability, and survivor benefits to more than 67 million Americans, according to the SSA. It is funded mainly through payroll taxes collected under the Federal Insurance Contributions Act.

Social Security faces long-term funding challenges. The Congressional Budget Office found that the trust fund for retirement and survivor benefits will run out by 2032, a year earlier than previously estimated. Without any changes, payroll taxes would only cover part of the scheduled benefits after that date.

Nearly 4 in 10 men and about 4 in 10 women receive at least half of their income from Social Security, according to the SSA. About 1 in 8 men and 1 in 7 women age 65 and older depend on Social Security for 90 percent or more of their income.

People are also living longer. In 1940, a 65-year-old could expect to live nearly 14 more years. Today, the average 65-year-old can expect to live more than 20 additional years, and retirees will need benefits for longer.

Meanwhile, the nation’s older population is swelling. The SSA projects Americans age 65 and older will increase from about 61 million in 2023 to roughly 77 million by 2035.