News Archive

"The size and location of additional assets expected to complement Social Security income should directly inform clients' claiming decisions. So should a client's projected longevity, with better longevity generally encouraging delayed claiming where possible.... [C]urrent retirees depend on Social Security for about 40% of income on average."  MORE >>

"[It's] hard to read an article about Social Security these days that doesn't proclaim the financial benefits of waiting till 70.... [M]any in the financial services industry ... are increasingly prone to labeling those who take those well-earned benefits 'on time' as being foolhardy at best ... [T]here's more to these types of decisions than 'the math' ... [S]ome people get so caught up in a slide rule exercise they forget that there are real, rational, personal reasons for the timing of the claiming decision."  MORE >>

"Although the 2.8% COLA is only 0.3% more than the 2.5% increase in 2025, it isn't far from the historical average. The COLA has averaged about 2.6% over the past 20 years. It went as low as 0.0% in 2016 amid declining prices, and as high as 8.7% in 2023 when inflation spiked after COVID disruptions."  MORE >>

"Social Security benefits, including Old-Age, Survivors, and Disability Insurance (OASDI), and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8 percent in 2026.... [T]he maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100."  [Also available: Fact Sheet which outlines all 2026 Social Security changes.]  MORE >>

"[T]here is no one-size-fits-all solution when it comes to filing for -- or changing -- your Social Security retirement benefits.... [1] Projecting your benefits; [2] Life expectancy and Social Security; [3] How marriage affects your benefits; [4] How to 'undo' your benefits; [5] Social Security planning and your overall financial picture; [6] Concerns about Social Security solvency; [7] Making an informed decision."  MORE >>

"Only 22% of Americans age 50-plus agree that 'a cost-of-living adjustment (COLA) of right around 3% for Social Security recipients is enough to keep up with rising prices,' while 77% disagree.... A follow up question asked what level of increase would be sufficient to help Social Security recipients afford everyday living expenses. Nearly three-quarters (72%) of older Americans selected 5% or higher, with one quarter (26%) indicating that an 8% increase would be necessary to keep pace with rising costs."  MORE >>

"The Social Security trust fund that is used to pay retirement benefits is expected to be depleted in 2033. Once the trust fund is depleted, retirees may only receive 77% of their benefit amount. It is widely believed Congress will make changes to the Social Security system before the trust fund is depleted. Finance experts say those changes shouldn't affect older workers, but younger workers could see reduced benefits and should start investing more for retirement."  MORE >>

36 pages; Sep. 29, 2025. "Following a brief description of each provision, [the authors] provide ... [1] the change in the 75-year long-range actuarial balance, [which] indicates the financial effect of the provision over the entire long-range (75-year) period.... [2] the change in the annual balance as of the 75th year, [which] gives an indication of the year-by-year expected gain or shortfall after the provision has been in place for a long period of time." [Detailed estimates for each category of change also available.]  MORE >>

"Public sector entities seeking exemption from Social Security must demonstrate that they comply with the requirement that they sponsor a pension plan whose benefits are 'comparable' to Social Security. The most common method of demonstrating compliance is to show that the plan benefits are equal to or greater than a safe harbor that was established in 1991. But does the safe harbor truly ensure that benefits are comparable?"  MORE >>

"[The Claiming Age Clarity Act (HR 5284)] seeks to provide clarity on when seniors can claim benefits for Social Security and modernize the terminology associated with it. It also hopes to deter future beneficiaries from claiming at an earlier age so individuals can maximize on their benefits."  MORE >>

"Since the 1990s, our retirement system has been based on three pillars: government benefits, pensions from employers, and additional private saving. This report redefines each pillar for the modern labor force and financial markets -- and it proposes adding a fourth.... As part of the second pillar, 401(k)s could provide retirees with stable income. Yet this option remains rare because of regulatory hurdles.... Reimagining the retirement system requires adding a fourth pillar: working into retirement.... [R]ight now, obstacles -- on both the supply and demand side -- prevent many older Americans from working at all, even if they would like to do so."  MORE >>

"A more practical framework begins with the expected real return of the portfolio used to bridge the delay -- typically around 4%-5% for a balanced 60/40 allocation. Unless a retiree has specifically earmarked more conservative assets, such as a bond or a TIPS ladder, it's realistic to assume that delayed benefits will be funded by withdrawals from the overall portfolio -- meaning that the 'cost' of delayed filing is the growth foregone on the assets withdrawn to replace Social Security income."  MORE >>

"With one month of consumer price data left to go, it appears that the annual Social Security cost-of-living adjustment (COLA) will increase from its 2025 level ... The Senior Citizen's League (TSCL) predicts that the 2026 COLA will be 2.7%, while Mary Johnson, who is a retired Social Security and Medicare policy analyst, predicts that it will be 2.8%. This is compared to last year's adjustment of 2.5% and a 2024 adjustment of 3.2%."  MORE >>

"[A]dding ESI would raise payroll taxes by about $400 per year on average and reduce Social Security's 75-year shortfall by about 25 percent. This option is somewhat regressive -- as it would collect no additional taxes from earners above the wage cap -- but it could be part of a larger reform package."  MORE >>

"The Protecting and Preserving Social Security Act [HR 4968] would use the Consumer Price Index for the Elderly, or CPI-E, to calculate the relevant cost-of-living adjustment and phase out the cap on Social Security contributions over the next seven years."  MORE >>

"Retirees are likely to see only a modest rise in Social Security benefits next year ... The Senior Citizens' League (TSCL) has raised its prediction to 2.7% in July from 2.6% in June based on creeping inflation rates. The TSCL has raised its projection by 0.1% every month since its estimate for March[.]"  MORE >>

62 pages. "[T]his report ... illustrate[s] how this social safety net plays a vital role in helping Americans achieve a more secure retirement. The report examines people's beliefs, expectations, and reliance on Social Security. It also sheds light on their views on how to address its funding shortfalls."  MORE >>

"[T]he longer people live ... the more expensive the program.... Trustees Reports in the next few years may well show larger 75-year deficits in the coming years. Even with higher projected deficits, however, the levers are available on both the revenue and benefit side to restore balance. Congress just needs to act."  MORE >>

"To address rising longevity, [the authors] propose gradually increasing Social Security's full retirement age past the current age of 67.... [R]ising longevity has not been distributed equally.... A stylized policy would effectively increase the full retirement age by two years for a middle-earning employee and four years for the highest earners while leaving benefits unchanged for low earners. This policy change could ultimately address roughly half of Social Security's annual deficits."  MORE >>

"Over calendar years 2025 through 2034, the total net increase in OASDI program cost is estimated to be $168.6 billion. In addition, the timing of combined OASI and DI Trust Fund reserve depletion is accelerated from the third quarter of 2034 under the 2025 Trustees Report baseline to the first quarter of 2034 following implementation of the law."  MORE >>

"In April, the BLS stopped collecting data on two cities: Lincoln, Nebraska, and Provo, Utah. In June, the BLS suspended collection entirely in Buffalo, New York. The BLS has acknowledged ... that the loss of data from these cities 'may increase the volatility of subnational or item-specific indexes' but will have 'minimal impact on the overall all-items CPI-U and CPI-W indexes.' ... A distortion of the CPI-W data could result in either a higher or lower COLA."  MORE >>

"The trend of high earners delaying their benefits has reversed amid false claims of widespread fraud. If a benefit cut occurs, everyone's payment will fall -- even those who claimed early. Your affluent clients can likely afford to wait until 70 and will probably live longer than the average American."  MORE >>

"[T]he federal government is sending mixed messages about the 'elimination' of taxes on Social Security benefits. Taxpayers 65 and older with income under $75,000 (or $150,000 for a couple) can take the new deduction, which expires after 2028. Were taxes on benefits to be eliminated by future legislation, trust fund insolvency projections would worsen."  MORE >>

"The bottom line is that 'yes' people are claiming later, but the increase in claiming age is slightly less than what one would expect from the increase in work at older ages -- and that finding holds regardless of whether the focus is people claiming in a given year or people born in a given year."  MORE >>

"The purpose of this post is to discuss how to use the Actuarial Financial Planner models to plan for a future decrease in your current Social Security benefit assuming that the benefit reduction will be take place in 2034, 9 years from 2025.... It is arguably more prudent and conservative to assume some level of benefit cuts will occur than to assume none."  MORE >>