Retirement Retirement Planning

The 'Big Beautiful Bill' Could Force Some Early Retirees Back to Work - Here's Who Is at Risk

New SNAP and Medicaid requirements might send retirees back to work.

By Paige Cerulli , Edited by Andrea Basse

Updated May 21, 2026

Add Us On Google

When retirement savings are stretched thin, Medicaid and the Supplemental Nutrition Assistance Program (SNAP) may help bridge the gap. But Trump's One Big Beautiful Bill (OBBB) Act means that early retirees may lose Medicaid and SNAP unless they return to the workforce.

Here's what to know about how the bill is affecting early retirees and what it might mean for your retirement plans.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

The OBBB Act

On July 4, 2025, Trump signed the OBBB Act into law. At more than 900 pages, the legislation made sweeping changes that affected retirees' lives in many ways. The OBBB reduced federal funding for food assistance and cut Medicaid and Affordable Care Act funding. It also provided a $6,000 tax "bonus" deduction for older adults to help reduce the impacts of taxes on Social Security benefits,

While some changes, like the tax deduction, may benefit retirees, the OBBB established new Medicaid work requirements that could force some early retirees to return to work.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

New Medicaid work requirements under the OBBB

Under the OBBB, certain Medicaid recipients up to age 64 are now required to work in order to remain enrolled in the program. Prior to the legislation, Medicaid work requirements were prohibited under federal law, but some states enacted their own work requirements for the program.

The OBBB now requires individuals ages 19 to 64 to work or participate in qualifying activities, such as job training or community service hours, for at least 80 hours per month to remain eligible for Medicaid.

States must adopt the new work requirements by January 1, 2027.

Medicaid work requirement exemptions

Exemptions may mean that certain individuals, such as parents of children age 13 or younger, or those who have qualifying health conditions, may not have to meet the new work requirements. However, individuals eligible for an exemption may have to provide documentation to prove they qualify, and the administrative burden may cause some people to still miss out on Medicaid coverage.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

How the Medicaid work requirements affect retirees

According to an AARP Public Policy Institute analysis, 9 million Medicaid recipients between age 50 and 64 may be affected by these new work requirements.

The requirements may have a particularly significant impact on individuals who have retired early. For example, an individual who retired at age 62 and who relies on Medicaid coverage may now be forced to return to work to keep their health care coverage. Alternatively, affordable health insurance options are extremely limited or even nonexistent, meaning retirees may have no choice but to resume working to keep their Medicaid coverage until they reach age 64.

New SNAP work requirements under the OBBB

The OBBB has also raised the SNAP work requirement age limit from 54 to 64. The legislation now applies to able-bodied individuals who do not live with dependent children. Those individuals are now limited to receiving three months of SNAP benefits every three years unless they work at least 80 hours per month.

Some individuals may qualify for an exemption from the work requirement, such as if they have a certain medical condition or have dependent children under age 14.

How the SNAP work requirements affect retirees

The Center on Budget and Policy Priorities projects that more than 1 million adults ages 55 to 64 are going to lose SNAP.

The work requirements may significantly affect retirees who may have retired early, specifically because they are no longer able to work. Many low-wage jobs require significant physical exertion, and an individual who retired at age 60 because of physical limitations may no longer be able to work and might lose their SNAP benefits as a result.

It's also possible that older adults may feel overwhelmed by the work requirements or just might decide that they don't deserve SNAP and may go without their benefits.

Retirement News: Almost 80% of Americans fear a retirement age increase — here’s the real reason why

Potential health impacts of work requirements

Older adults who lose out on Medicaid and/or SNAP benefits may have to stretch tight budgets, which might prompt them to go without medical care or choose between food and medication they need. Research has shown that food-insecure older adults have an increased risk of health issues like diabetes, gum disease, and congestive heart failure, plus they're at a higher risk of depression compared to food-secure older adults.

According to the Food Research & Action Center, food insecurity is a strong predictor of higher health care needs and costs, since coping with food insecurity may exacerbate an older adult's existing health conditions. Food-insecure older adults often have more visits to doctors and the emergency room, as well as more frequent hospitalizations, which could be financially devastating if they don't have health insurance coverage.

Bottom line

If you or a loved one depend on Medicaid or SNAP, be sure to check current eligibility and understand the work requirement exemption criteria. With the January 1, 2027, deadline approaching for state-level enforcement of Medicaid work requirements, this is a good time to start shopping the Affordable Care Act (ACA) marketplace for alternative health insurance options if you think you may lose your Medicaid coverage.

If you're planning to retire early but are enrolled in Medicaid or SNAP, you may need to rethink your retirement or find an alternative option to your current coverage.

More from FinanceBuzz: