The new “Big Beautiful Bill” promises bigger paychecks for working Americans. Boomers close to retirement could increase savings with outlined tax breaks. Americans aged 65 and up can claim a $6,000 increase in standard deduction for their 2025-2028 federal tax return. Single filers can deduct $20,600, and married couples up to $41,200.

The tax savings may help with increased expenses in retirement, like healthcare, or go towards savings goals. Retirees paying taxes on Social Security or retirement account distributions could benefit from the deduction. The bill also triggers Medicare spending cuts, leading to potential higher out-of-pocket costs for individuals.

Cuts to Medicare funding starting in 2026 could mean less money for doctors, hospitals, and insurance plans, potentially resulting in higher out-of-pocket costs. Insurance providers may increase premiums to make up for the loss, impacting Medicare Advantage and Part D drug plans. Congress may need to pass a waiver to avoid these cuts.

Read more at Yahoo Finance: 2 Things the ‘Big Beautiful Bill’ Will Do To Boomers’ Retirement Savings