All articles tagged with #retirees
The Social Security cost of living adjustment for next year is expected to be around 2.8%, slightly higher than 2025, driven by rising inflation, which could benefit over 72.5 million recipients, especially as poverty rates among seniors are increasing.
President Trump’s federal hiring freeze and the firing of BLS Commissioner Erika McEntarfer raise concerns about the accuracy of inflation data used for Social Security's 2026 COLA, potentially impacting retirees' benefits and trust in economic data.
Social Security's 2026 cost-of-living adjustment (COLA) is expected to increase, influenced by President Trump's tariff and trade policies, which could impact the benefits received by retirees, who rely heavily on Social Security income for their expenses.
The Trump administration is resuming collection efforts on defaulted federal student loans, which could lead to a 15% deduction from Social Security benefits for retirees, affecting nearly 3 million seniors, including over 450,000 who have defaulted on loans while receiving benefits.
Many retirees are only taking their required minimum distributions (RMDs) from retirement accounts out of fear of outliving their assets, which can lead to significant lost income. This cautious approach, part of the 'retirement consumption paradox,' often results in large account balances and unnecessary withdrawals later in life. Retirees are encouraged to explore alternative strategies like qualified charitable distributions or rolling funds into a Roth account to optimize their income.
Social Security beneficiaries are set to receive a 2.5% cost-of-living adjustment (COLA) in 2025, the smallest increase since 2021 and below the 10-year average. This adjustment may not fully compensate for inflation, as recent data shows inflation reaccelerating, potentially reducing retirees' purchasing power. Retirees are advised to explore options like high-yield savings accounts or stock market investments to supplement their income.
Medicare Part B premiums will increase to $185 in 2025, up from $174.70 in 2024, alongside a rise in the annual deductible to $257. This increase will offset the 2.5% cost-of-living adjustment (COLA) in Social Security benefits, reducing the net benefit for many retirees. The impact will vary based on individual benefit amounts, with lower-income beneficiaries feeling the squeeze more acutely. However, 'hold harmless' rules will protect those with very low benefits from the full premium increase.
Retirees considering claiming Social Security benefits in 2025 should carefully evaluate the financial implications of claiming early versus waiting. Claiming benefits as early as age 62 can reduce monthly payments by 25-30%, while delaying until age 70 can increase them by 15-25%. It's crucial to assess benefit options based on factors like income history and retirement plans, as there's no advantage to delaying claims past age 70. Consulting with the Social Security Administration can help retirees make informed decisions about when to start receiving benefits.
The Social Security Administration announced a 2.5% cost-of-living adjustment (COLA) for 2025, which is smaller than recent years' increases. While this modest raise may seem disappointing, it reflects cooling inflation, meaning retirees' buying power may remain stable. However, rising Medicare Part B premiums will offset some of the COLA benefits, reducing the net increase for many seniors.
Retirees receiving Social Security benefits must take action by November 20 to continue receiving notifications about their checks. Failure to do so may result in missing important updates regarding their benefits.
Social Security beneficiaries are set to receive a 2.5% cost-of-living adjustment (COLA) in 2025, translating to an average $49 monthly increase for retired workers. However, this increase may lead to more retirees facing federal taxation on their benefits, as the income thresholds for taxation have not been adjusted for inflation since their introduction in the 1980s. This situation highlights the double-edged nature of COLA increases, as they can inadvertently expose more retirees to taxes.
Walmart is launching its Black Friday Deals early, starting online on November 11 and in-store through November 15, offering significant discounts on various items. Retirees are encouraged to take advantage of these deals, which include Levi Strauss jeans, a Jessica Simpson puffer coat, a Shark stick vacuum, a Samsung 65" 4K Smart TV, and more. Walmart+ members will receive five hours of early access to these deals.
The Social Security Administration's method for calculating cost-of-living adjustments (COLAs) using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is particularly disadvantageous for the 20% of retirees living in rural areas, where inflation has been higher. This metric also inadequately reflects the costs incurred by seniors, especially in healthcare. Retirees are encouraged to monitor their spending and advocate for a more accurate inflation measure like the Consumer Price Index for the Elderly (CPI-E).
Social Security recipients are projected to receive a 3% cost-of-living adjustment next year, higher than expected due to accelerating inflation. This increase, if realized, would be a decline from recent years but still higher than the average over the past two decades. Many retirees are struggling to keep up with high inflation, with the typical household needing to pay significantly more for goods and services compared to previous years. Inflation has created financial pressures for U.S. households, particularly impacting low-income Americans, and while it has fallen from its peak, many families have yet to see relief.
The annual Social Security cost-of-living adjustment (COLA) for 2025 could be larger than the 2024 increase, potentially impacting retirees negatively due to the time value of money and rising inflation. The current inflation metrics suggest a higher COLA, but this may not fully address the increasing healthcare costs incurred by retirees, potentially reducing their real buying power. However, estimates for the 2025 COLA are subject to change, with the latest prediction at 2.6%, still lower than the 3.2% increase in 2024.