retirees

A stable income stream is the cornerstone of a worry-free retirement. By receiving reliable payments, retirees can focus on enjoying life rather than stressing over expenses. The right investments are crucial in making this possible.

Investing in high-quality dividend stocks can be a great source of reliable retirement income. Realty Income (O 1.12%) and Oneok (OKE 0.63%) have each demonstrated the durability of their dividend payments over many decades. This proven reliability makes them strong options for those seeking consistent income in retirement.

Image source: Getty Images.

Executing the mission

Realty Income has a clear mission. This real estate investment trust (REIT) aims to provide dependable monthly dividends that grow over time. The company has paid 664 consecutive monthly dividends throughout its history. It has raised its payment 132 times since its public market listing in 1994, including for the past 112 quarters in a row (and for more than 30 consecutive years). It stands out for its consistency among income stocks in the real estate sector.

The REIT offers investors an attractive dividend that currently yields 5.5%. That’s well above average (the S&P 500‘s dividend yield is around 1.2%). As a result, investors can generate more income from every dollar they invest in the company.

Realty Income backs its reliable dividend with very durable cash flows. It owns a diversified real estate portfolio (retail, industrial, gaming, and other properties), net leased to many of the world’s leading companies. Net leases provide it with very predictable cash flow because tenants cover all property operating expenses, including routine maintenance, real estate taxes, and building insurance. Meanwhile, the company owns properties leased to tenants in resilient industries. Over 90% of its rent comes from tenants in sectors resilient to economic downturns and isolated from the pressures of e-commerce, such as grocery stores, distribution facilities, and data centers.

The REIT pays out a conservative percentage of its stable rental income in dividends (about 75% of its adjusted funds from operations). That gives it a comfy cushion while enabling it to retain lots of cash to make additional income-generating real estate investments. Realty Income also has one of the strongest balance sheets in the sector, further enhancing its ability to make new investments. It should have no shortage of investment opportunities in the coming years, given the $14 trillion total estimated market value of real estate suitable for net leases across the U.S. and Europe. The company’s growing portfolio enables it to steadily increase its dividend.

A pillar of stability

Oneok has been one of the most reliable dividend stocks in the pipeline sector. The energy infrastructure company has delivered more than a quarter-century of dividend stability and growth. While Oneok hasn’t increased its payout every single year, it has grown it at a peer-leading rate over the past 10 years by nearly doubling its payment. The company currently offers a 6% dividend yield.

The energy company operates a balanced portfolio of premier energy infrastructure assets, backed predominantly by long-term, fee-based contracts. Those agreements provide it with very stable cash flow to cover its dividend. Oneok also has a strong investment-grade balance sheet backed by a low leverage ratio. This rock-solid financial position gives the company the flexibility to invest in organic expansion projects and make accretive acquisitions to grow its platform.

Oneok currently has several high-return organic expansion projects in the backlog, which it expects to complete through mid-2028. This gives it lots of visibility into its future growth. The company has also made several acquisitions over the past few years, which will continue to boost its bottom line in the coming years as it captures additional synergies. It has ample financial flexibility to approve new expansion projects and make additional acquisitions. With demand for energy expected to continue growing, especially for natural gas, the company should have no shortage of investment opportunities. This fuels Oneok’s view that it can grow its dividend by a 3% to 4% annual rate.

Reliable income stocks

For retirees seeking dependable, growing income, Realty Income and Oneok stand out as proven dividend payers. Their stable cash flow and prudent financial management provide confidence that these companies can continue delivering reliable income for years. Those features make them ideal dividend stocks for retirement portfolios.

Social Security will soon be making a big announcement. On Oct. 24, 2025, the Social Security Administration will finally let seniors know what their 2026 Cost of Living Adjustment (COLA) is going to look like.

COLAs happen in most years to help retirees maintain their buying power. Because COLAs increase the retirement benefits seniors collect, the news about how big the raise will be is always much-anticipated.

Unfortunately, although retirees are most likely going to get a bigger benefits increase than last year, many seniors are inevitably going to end up disappointed with the increase to their checks in 2026.

Here’s the surprising reason why that’s the case.

The COLA is going to be bigger– but there’s a problem

Although the official announcement on the Social Security COLA has not been made yet, the Senior Citizens League is projecting that benefits are going to increase by 2.7% next year. This estimate is based on year-to-date changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

CPI-W is used to determine how much Social Security benefits should increase because it helps to measure inflation, and the purpose of the COLAs is to make sure that Social Security benefits do not lose buying power. While the formula isn’t a perfect one since the spending habits of urban wage earners and clerical workers aren’t exactly aligned with senior spending, the formula does give an idea of how much prices are rising — and retirees get a benefits increase equal to the average year-over-year change to CPI-W in the third quarter of the year.

Since we have a lot of this data available, the Senior Citizens League estimate is probably fairly close to accurate, and barring any major surprises when the September inflation data is released in October, the raise should come in at around that projected 2.7%. And, if it does, that will be a little bit bigger than the benefits increase retirees received in 2025.

A bigger raise should make seniors pretty happy since they’ll get more money to help maintain buying power — but there’s a surprising reason why that’s not necessarily going to be the case. The problem is that a good portion of the additional funds coming to retirees will disappear to cover rising Medicare premiums.

COLAs will take a huge hit due to rising Medicare premiums

For any retiree who is on Medicare, the COLA is probably going to be a huge disappointment because of how little of it will be left after Medicare premiums are accounted for.

See, Medicare premiums come out of most people’s Social Security checks. And Medicare Part B premiums are going up by a huge amount next year. The Medicare Trustees’ report projects that premiums are going to increase by $21.50 per month, jumping all the way up from $185 in 2025 to $206.50 in 2026. This is one of the biggest year-over-year increases in the history of the Medicare program.

If a typical retiree is collecting the average benefit of $2,008.31 in 2025, a 2.7% COLA would result in their benefits increasing by around $54. If $21.50 of that disappears, then the typical retired Social Security recipient will end up seeing their monthly payments go up by only $32.50.

By contrast, if someone had started with that same $2,008.31 check in 2025 and received a 2.5% COLA, they’d have seen their benefit go up by around $50.00 — but, since Medicare premiums only rose by $10.30 per month between 2024 and 2025, retirees would have seen benefits go up by around $40.

Retirees need to be aware that so much of their benefit increase is going to disappear to rising Medicare premiums this year, and take that into account during their retirement planning process for the upcoming year. Seniors need to maintain a safe withdrawal rate from their 401(k) and other retirement accounts, and with a Social Security raise that ends up pretty small after Medicare costs take a bite out of it, this may require some careful budgeting.

Every October, the Social Security Administration (SSA) announces the cost-of-living adjustment (COLA) for the upcoming year.

Up until recently, that announcement was supposed to be around Oct. 15 — right after the Bureau of Labor Statistics (BLS) releases September’s inflation report. But with the federal government closed until further notice, it seemed as if that report wouldn’t be released anytime soon.

New information from the BLS, however, suggests we could be getting the COLA announcement sooner than expected. Here’s when it might be coming, what it might be, and how that might affect your retirement.

Image source: The Motley Fool.

When will the new COLA be released?

The SSA calculates the COLA by averaging Consumer Price Index data from July, August, and September. That average is compared to the figure from the same period the year prior, and if it’s higher, the percentage difference will be next year’s COLA.

Before the government shut down, the BLS was expected to release September’s Consumer Price Index data on Oct. 15. But with that office almost entirely furloughed, it was unlikely the report would be published before the government reopened.

However, on Oct. 10, the BLS published an update noting that September’s inflation report would be released on Oct. 24. Generally, the SSA announces the new COLA almost immediately after the BLS inflation report is published.

What might next year’s adjustment be?

We won’t know the official 2026 COLA until the SSA makes the announcement later this month, but nonpartisan advocacy group The Senior Citizens League has estimated that it will land at 2.7%.

That figure is based on already available inflation data, as well as the projected data from September. If September’s numbers are significantly different from the estimates, the COLA may be higher or lower than predicted.

The average retired worker collects just over $2,000 per month in benefits, according to August 2025 data from the SSA. A 2.7% COLA, then, would amount to a raise of around $56 per month.

While any boost in benefits is helpful to a degree, for many retirees, next year’s COLA may be underwhelming. Inflation has stayed stubbornly high throughout the year, and tariffs have also taken a bite out of many retirees’ budgets.

Medicare Part B premiums are also expected to increase from $185 per month this year to a projected $206.50 per month in 2026, according to this year’s Medicare Trustees Report. Because Medicare premiums are typically deducted from Social Security checks, that $21.50 monthly increase will eat up a significant chunk of the COLA raise for the average retiree.

What does this mean for retirees?

It doesn’t hurt to keep an eye out for the COLA announcement to help budget for 2026, but for the most part, retirees may want to avoid relying too heavily on this adjustment to make ends meet.

Again, any extra cash can help pay the bills, especially with many older adults stretched thin financially right now. But with Social Security not going as far as it used to, it may be wise to start finding ways to reduce your dependence on your benefits.

According to a report from The Senior Citizens League, Social Security benefits lost around 20% of their buying power between 2010 and 2024. If you can swing it, finding a source of passive income or going back to work temporarily could have a bigger impact on your budget than any COLA.

This won’t be possible for everyone, but if you can beef up your savings even slightly, you won’t need to worry quite as much about future COLAs falling short. No matter where the 2026 adjustment lands, it’s wise to keep realistic expectations about how far that money will go.

For most retirees, Social Security is more than just a monthly deposit into their bank accounts. It represents a financial lifeline that helps them make ends meet.

In 2023, Social Security lifted more than 22 million people out of poverty, according to an analysis from the Center on Budget and Policy Priorities (CBPP), and 16.3 million of these recipients were aged 65 and over. If Social Security didn’t exist, the CBPP estimates the poverty rate for adults aged 65 and up would jump nearly fourfold, from 10.1% (with existing payouts) to 37.3%.

Meanwhile, 24 years of annual surveys from Gallup show that 80% to 90% of aged beneficiaries lean on their payouts in some capacity to cover their expenses.

For retirees, few announcements have more bearing than the annual cost-of-living adjustment (COLA) reveal in October. Though Social Security payouts are on track to do something that hasn’t been witnessed in almost 30 years, next year’s “raise” appears set to give retirees the short end of the stick, yet again!

Image source: Getty Images.

What is Social Security’s COLA and why might the 2026 reveal be delayed?

The fabled “COLA” you’ve probably been hearing and reading about over the last couple of weeks is the tool the Social Security Administration (SSA) has on its proverbial toolbelt to keep benefits aligned with inflation.

Hypothetically, if a large basket of goods and services that retirees regularly purchase increases in cost by 2% from one year to the next, Social Security benefits would also need to climb by 2%. Otherwise, these folks would see their buying power decline. Social Security’s COLA attempts to mirror the inflationary pressures that program recipients are facing so they don’t lose purchasing power.

This near-annual raise is based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which has measured price changes for Social Security since 1975. It has more than 200 individually weighted categories, which allows the CPI-W to be chiseled down to a single figure at the end of each month. These readings can be compared to the prior-year period to determine if prices are collectively rising (inflation) or declining (deflation).

What makes the COLA calculation unique is that only CPI-W readings from July, August, and September (the third quarter) are used to determine the upcoming year’s raise. If the average third-quarter CPI-W reading in the current year is higher than the comparable period last year, prices, as a whole, have risen, and so will Social Security checks in the upcoming year.

The catch with Social Security’s 2026 COLA is that its expected reveal on Oct. 15 may be delayed. The September inflation report is the final puzzle piece needed to calculate the program’s cost-of-living adjustment. However, most economic data releases are delayed during a federal government shutdown, which, in turn, can postpone the Oct. 15 COLA announcement set for 8:30 a.m. ET.

A higher prevailing rate of inflation in recent years has led to beefier annual COLAs. U.S. Inflation Rate data by YCharts.

A first-of-its-century raise is eventually headed retirees’ way

Once the SSA does have the necessary data to calculate and reveal the 2026 COLA, it’s a virtual certainty that beneficiaries will witness history being made.

Over the last four years, Social Security recipients — retired workers, workers with disabilities, and survivor beneficiaries — have enjoyed above-average cost-of-living adjustments. From 2022 through 2025, their Social Security checks grew by 5.9%, 8.7%, 3.2%, and 2.5%, respectively. To put these figures into some sort of context, the average COLA increase over the last 16 years was 2.3%.

Based on two independent estimates that were updated following the release of the August inflation report, a fifth-consecutive year above this 16-year average is expected.

Nonpartisan senior advocacy association The Senior Citizens League (TSCL) has pegged their 2026 COLA forecast at 2.7%, while independent Social Security and Medicare policy analyst Mary Johnson is calling for a slightly higher boost of 2.8%. These two forecasts would imply a roughly $54 to $56 per-month increase in the average retired-worker benefit in the new year.

More importantly, a 2.7% or 2.8% COLA would result in an event that hasn’t been witnessed in almost three decades. From 1988 through 1997, Social Security COLAs vacillated between 2.6% and 5.4%. If the 2026 COLA comes in at 2.5% or above, which looks like a virtual certainty based on independent estimates, it would mark the first time in 29 years that benefits will have risen by at least 2.5% for five consecutive years.

Image source: Getty Images.

The purchasing power of a Social Security dollar isn’t what it used to be

Unfortunately, this potentially history-making moment won’t be fully felt or enjoyed by aged beneficiaries. Though nominal payouts have notably climbed in recent years, the painful reality is that the buying power of Social Security income simply isn’t what it once was.

For example, you might be surprised to learn that the CPI-W isn’t doing retirees any favors. While this index is designed to mirror the inflationary pressures that Social Security’s retired workers are contending with, it has built-in flaws that keep this from happening.

The CPI-W is an index that tracks the cost pressures faced by “urban wage earners and clerical workers,” who, in many cases, are workers under the age of 62. By comparison, 87% of Social Security beneficiaries are 62 and above, as of December 2024.

Aged beneficiaries spend their money differently than workers under the age of 62. Specifically, retirees spend a higher percentage of their budget on medical care services and shelter than younger folks. Even though seniors make up 87% of all Social Security recipients, the CPI-W doesn’t account for the added importance of shelter and medical-care service costs in the COLA calculation.

Furthermore, the trailing-12-month inflation rate for shelter and medical care services has pretty consistently been higher than the annual COLAs beneficiaries have received. According to TSCL, this disparity has played a role in reducing the buying power of Social Security income by 20% from 2010 to 2024. A 2.7% or 2.8% cost-of-living adjustment isn’t going to offset or halt this decline in purchasing power.

To make matters worse, dual enrollees — those receiving Social Security income who are also enrolled in traditional Medicare — are expected to see sizable COLA offsets due to a projected double-digit percentage increase in the Part B premium in 2026.

Part B is the portion of Medicare responsible for outpatient services, and the premium for Part B is commonly deducted from a Social Security recipient’s monthly benefit. An estimate from the 2025 Medicare Trustees Report calls for an 11.5% jump in the Part B premium to $206.20 next year. For lifetime low earners, this increase might gobble up every cent of their projected 2026 COLA.

Regardless of whether or not Social Security’s 2026 COLA is delayed, it’ll mark another year where retirees get the short end of the stick.

A lot of people work really hard to build up a retirement nest egg. If you’re approaching your senior years with a large balance in an IRA or 401(k), you probably gave up a lot to accumulate that wealth. So now, it should buy you the dream retirement you deserve.

But saving for retirement is only half the battle. It’s important to make sure your investment portfolio is working for you once your career comes to an end and the time comes to start living off your savings. Here are some of the biggest mistakes retirees make with their portfolios — and how you can avoid them.

Image source: Getty Images.

1. Investing too conservatively

Workers are often told to load their portfolios with stocks to generate strong returns while they’re in the process of building savings. Once you retire, you may be inclined to scale back on stocks to unload some of your risk.

That’s definitely not a bad idea. But one thing you don’t want to do is maintain too conservative a portfolio during retirement, either. Limiting yourself to, say, 10% stocks could mean minimizing risk, but also minimizing the returns your portfolio continues to generate.

You need your savings to be able to keep up with and, ideally, outpace inflation during your retirement years. This is especially important given that Social Security’s cost-of-living adjustments often do a poor job of helping retirees maintain their buying power from one year to the next.

So to that end, don’t be so quick to ditch stocks once you’re retired. Instead, make sure the stock portion of your portfolio is well balanced. Also, you may want to favor dividend stocks over growth stocks, since they tend to be less volatile and generate steady income that could help offset other potential portfolio losses.

2. Tapping investments early on when they’re down

Some retirees have the unfortunate luck of seeing the stock market decline just as they’re getting ready to tap their portfolios. If that happens to you, and you withdraw from a declining portfolio, you could end up with an income shortfall throughout retirement.

When stock values are down, you need to sell more shares of the ones you own to get the income you’re after. That means you’ll be left with fewer shares by the time the market recovers.

The solution? Have about two years’ worth of living expenses in cash. That way, if the market tanks at the start of your retirement, or at any point during your retirement, for that matter, you may not have to sell investments at a loss to generate the income you need.

3. Forgetting about real estate

One of the most important things you can do in retirement is maintain a diversified portfolio. And to that end, one corner of the market you don’t want to neglect is real estate.

Property values don’t always rise and fall with stock values. So real estate can serve as a great hedge at a time when you’re reliant on your portfolio for income.

That said, you don’t need to own physical real estate, like a rental property, to benefit from this strategy. Instead, you could invest in residential REITs, or real estate investment trusts.

Residential REITs are companies that own residential properties. These could include apartment buildings or student housing complexes.

While investing in any type of REIT might allow you to diversify nicely, one positive thing about residential properties is that they’re somewhat recession-proof, since people will always need a place to live, regardless of the economy. That makes residential REITs a particularly compelling choice for a retirement portfolio.

After working hard to build your nest egg, you deserve to enjoy retirement to the fullest. Avoiding these investment mistakes could help you do just that.

If you’ve been on Social Security for a while, changes to the program may not seem all that unusual to you. Each year, the government makes updates to benefits and the formula used to calculate them. But 2025 hasn’t been an ordinary year. Several unusual changes have already taken place, and a few more are set to go into effect by the end of December.

They may not all affect you, but chances are, at least one will have a pretty significant impact on your budget as we move into 2026.

Image source: Getty Images.

1. The Social Security Fairness Act’s passage

Congress passed the Social Security Fairness Act (SSFA) in January. This law eliminated two longstanding Social Security provisions — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that had previously reduced the amount of benefits that would be paid to people who received pensions from employers that didn’t pay into Social Security on their behalf.

As a result of this change, many former teachers, firefighters, police officers, and other government workers saw their benefits jump this spring, with some getting an additional $1,000 or more each month.

The Social Security Administration finished making these benefit adjustments back in July. If you were affected, you should have been notified of the change, and you’ve likely already begun receiving your new, larger benefit checks.

2. Overpayment recovery rate increase

In March 2024, the Biden administration made a change to how Social Security dealt with overpayments: If, for some reason, an individual was found to have received more than they were due, the agency would withhold at most 10% of each of their future checks until all of the overpayment was recovered. The goal of spreading out the repayment period this way was to avoid putting unnecessary financial hardship on retirees.

Early in 2025, President Donald Trump reversed that move, reverting the Social Security overpayment recovery rate from 10% per check back to 100%. This gave the government permission to withhold the entirety of your checks until it recouped its money. However, a few weeks later, he cut the recovery rate to 50%.

Overpayments are uncommon, but if this happens to you, losing half your checks for any period could still be devastating. However, if it will be a hardship, you can file a request for a lower repayment recovery rate.

3. The end of paper check delivery

The Social Security Administration announced in July that on Sept. 30, it would stop sending paper checks to beneficiaries. This change will save the government about $0.35 per payment while also improving the speed and security with which funds are distributed.

If you’re currently receiving paper Social Security checks, you can switch to direct deposit into a bank account or request a Direct Express Card. This is a prepaid debit card that the government will automatically load your Social Security benefit onto each month. You can change the method by which you receive your payments by logging into your my Social Security account or by contacting the Social Security Administration.

4. Reduced Social Security benefit taxes for some

Trump’s “big, beautiful bill” made several major changes to the tax code, including adding a new deduction for seniors worth up to $6,000 for single adults and up to $12,000 for married couples. This is on top of the standard deductions for those filing statuses and the existing senior tax deduction.

Contrary to what some sources claimed, this change did not eliminate or modify the existing taxes on Social Security benefits. However, a tax deduction will reduce your taxable income for the year, so you could pay taxes on a little less of your Social Security benefits than you would have before.

5. Cost-of-living adjustment (COLA)

The Social Security Administration will announce the size of its next cost-of-living adjustment (COLA) on Oct. 15. This will take effect with the December 2025 payment, which will go out to beneficiaries in January 2026.

Based on current estimates for U.S. inflation during the third quarter, the COLA will come in at around 2.7%. That would increase the average monthly benefit of $2,008 (as of August) by $54. 

Once the COLA is official, you will be able to calculate how much it will add to your 2026 benefits. But you should also get a personalized COLA notice in December. You can use that information to begin planning your budgets for 2026.

Despite how much Americans spend to look younger, some pretty nice perks accompany aging. If you’re getting older, there are reasons to celebrate: Not only are you wiser, you’re also eligible for discounts at some of your favorite places. Here’s a sample of what you can find when you want to make the most of your Social Security or pension benefits.

Image source: Getty Images.

Cell Phones

Groceries

Hotels

Restaurants

Retailers

Travel

This list represents a tiny percentage of the discounts available to those 50 and older. Rather than taking more than you want from your retirement savings, here are tips for landing more discounts:

• Don’t be shy about asking: Even if it’s not advertised, many businesses are interested in catering to established consumers and offer price breaks to keep them coming back. You can save real money by making it a habit to ask.
• Consider AARP: If you’re not a member of AARP yet, that’s where you’ll find a shocking number of discounts. A standard AARP costs around $20 annually, although a discount may be available when you join. Spending $20 or less annually may just help you fight inflation.
• Carry ID: Some places require proof of age before granting a discount. You should be good to go as long as you have ID.
• Make banks work for your business: Despite being in the business of making money, here’s a breakdown of the some of the most common perks banks offer seniors:

-Waived fees: Banks often eliminate monthly maintenance fee for checking and savings accounts.

-Free checks: Some banks offer free or discounted checks.

-Safe deposit boxes: Ask your bank about discounts available to seniors on safe deposit boxes.

-Higher interest rates: Some senior discount programs offer a higher rate on savings accounts.

-Miscellaneous savings: Banks may offer additional perks like free bank drafts, discounted money

orders, and even prescription discount cards.

The power is in your hands as a consumer. For the most part, you get to choose where to spend your money. Whether you’re saving for a vacation or making sure you’re ready for the next bear market, it’s OK to make businesses work for your patronage.

Social Security may be the most valuable retirement asset most Americans have. The pension for retired workers accounted for 20% of families’ total wealth in 2022, according to a study by the Congressional Budget Office. That’s based on a calculation valuing all future payments at present value.

Those future payments get a boost every year, which could make them even more valuable to Americans. The annual cost-of-living adjustment (COLA) helps benefits keep up with inflation. And while we won’t have the official 2026 COLA number until mid-October, it looks like it’ll come in higher than what analysts anticipated at the start of the year.

But a bigger COLA isn’t necessarily reason for Social Security recipients to celebrate. Here’s what retirees need to know.

Image source: Getty Images.

What’s pushing the 2026 COLA higher?

The annual COLA is based on a standard measure of inflation published every month by the Bureau of Labor Statistics called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

The CPI-W is one of several Consumer Price Index measurements the government publishes. The BLS surveys thousands of businesses and households across the country to collect pricing data on over 200 line items. Those prices are then indexed to a standard price from when the BLS first started collecting data, and weighted according to typical spending patterns of the group the index is supposed to follow. In the case of the CPI-W, the basket of goods represents the spending of working-age adults living in cities.

The Social Security Administration calculates the COLA by taking the average year-over-year increase in the CPI-W during the third quarter, i.e. July, August, and September. The BLS just published August’s CPI numbers on Sept. 11, with the CPI-W climbing 2.8% year over year. That follows a 2.5% increase in July. The final reading to determine the 2026 COLA will come out on Oct. 15.

Based on expectations for that reading, both The Senior Citizen’s League and independent analyst Mary Johnson have published their expectations for next year’s COLA. The former expects it to come in at 2.7% while the latter expects retirees to receive a 2.8% bump. Both estimates are higher than the 2.5% initial estimate The Senior Citizen’s League published before the start of the year.

The reasons for a higher COLA are bad news for 70 million beneficiaries

A bigger-than-expected raise is usually great news for those receiving it, but in the case of Social Security’s 70 million beneficiaries, it signals a challenging economic environment.

The biggest challenge is that the CPI-W doesn’t perfectly match the spending of most seniors. Most people don’t spend their money in retirement the same way they did when they were working age. They probably commute less and spend less on new clothing. They probably have different dining habits. And it’s almost certain that their medical bills have climbed higher as they grow older.

To that end, some of the biggest expenses seniors face are climbing faster than the overall CPI-W numbers. Medical care services were notably 4.2% higher this August than the year before. While gasoline prices were down, utilities were way up. Shelter expenses climbed 3.6%. Despite a 2.7% or 2.8% raise coming in January, most seniors have seen their real cost of living climb much more over the past year.

Rising medical costs are most prominently seen in the Medicare Trustees’ estimate for next year’s Medicare Part B premium. They expect the program will have to charge a standard monthly premium of $206.20 next year, an 11.5% increase from 2025. For those keeping track, that far outpaces the expectations for Social Security’s COLA. Beneficiaries age 65 and older enrolled in Medicare will see that amount come right out of their new monthly payments.

The Senior Citizens League contends this situation isn’t unique to this year’s COLA. It ran a study that estimates the buying power of someone’s benefits who started Social Security in 2010 has decreased 20% through 2024.

The best economic environment for Social Security has historically been slow, steady, and predictable inflation. Under the current administration, which has gone back and forth on trade policies numerous times since the start of the year, prices have become anything but predictable. While many businesses have taken preemptive steps to curb and delay the impact of tariffs, the costs will eventually get passed through to consumers. That could result in even more pain for those on a fixed income next year.

While a 2.7% or 2.8% raise might be bigger than anticipated, many seniors may find that it doesn’t go far enough next year.

The 401(k) account is one of the most common retirement savings accounts that employers offer their workers. Employees are able to contribute pre-tax dollars to these accounts and invest them tax-deferred. Only when withdrawals are made do the account holders pay taxes at their ordinary tax rate.

Employers have the option to offer some kind of matching contribution, usually up to a set percentage of each employee’s salary. Employer contributions are deductible up to a certain point.

With everyone making different salaries and employers having different policies for their 401(k) plans, it’s natural for workers to wonder how much they should save as they approach retirement. While there is no single right answer, available data can help you gauge where you stand.

Image source: Getty Images.

The average 401(k) balance for retirees age 60 and older

While several companies provide data on the average 401(k) balance, I like to use Fidelity when I can, given the company’s size and reputation in the space.

At the end of 2024, Fidelity looked at 401(k) data from 26,700 corporate defined contribution plans that included 24.5 million participants. The company found that the average 401(k) balance was $246,500 for ages 60 to 64, $251,400 for ages 65 to 69, and $250,000 for ages 70 and over.

Fidelity actually recommends saving much more than this amount. In prior articles, the company has suggested having eight times your annual salary by age 60 and 10 times your annual salary by age 67. With median annual earnings for a full-time U.S. worker above $50,000, Fidelity’s recommendation is far higher than the approximately $250,000 average balance for its plan participants near retirement.

But again, there’s always a difference between advice and reality. Retirees should also understand that an average number among tens of millions of people captures so many different scenarios. Ultimately, retirees should think about the lifestyle they want in retirement and work with a financial advisor or on their own to determine how much they need to support that lifestyle.

There’s a reason so many retirees worry about running out of money. Once you move over to a fixed income, it’s important to keep your costs as fixed as possible. But as we all know, inflation has a sneaky way of driving living costs up.

This especially holds true in the context of healthcare. Fidelity says that a 65-year-old who’s leaving the workforce this year can expect to spend $172,500 on healthcare costs in retirement. That’s a 4% increase from last year, and a pretty daunting number overall.

Image source: Getty Images.

That’s why it’s so important to be strategic when it comes to all things Medicare. With that in mind, here are a few Medicare moves that could save you big money in retirement.

1. Enroll on time

Although Medicare eligibility generally begins at 65, you don’t have to wait until you turn 65 to sign up. Your initial enrollment period begins three months before the month of your 65th birthday, and it ends three months after the month you turn 65.

If you don’t enroll during that initial window, but rather much later, you’ll put yourself at risk of lifelong Medicare surcharges. Specifically, you’ll face a 10% increase in your Part B premium costs for each 12-month period you were able to get Medicare but didn’t enroll. And that surcharge is one that applies for life.

For this reason, it’s best to plan to enroll in Medicare on time unless you have qualifying group health coverage through an employer. In that case, you’ll generally qualify for a special enrollment period and won’t be penalized for failing to enroll during your seven-month initial enrollment window.

2. Review your plan choices annually

Each year, Medicare holds an open enrollment period from Oct. 15 through Dec. 7. During this window, existing Medicare enrollees can make a host of changes, such as:

• Joining a Medicare Advantage plan for the first time.
• Switching Medicare Advantage plans.
• Switching Part D drug plans.
• Moving from Medicare Advantage to original Medicare.

It’s important to review your plan choices each year, even if you’re reasonably happy with your existing coverage. That’s because:

• Your plan’s rules and costs can change.
• Your healthcare needs can change.
• There may just be a better plan out there for you.

Switching Medicare plans could, depending on the circumstances, result in lower premiums and copays. So it pays to do your research each fall.

3. Buy a Medigap plan

If you’re planning to stick with original Medicare, as opposed to Medicare Advantage, then it pays to buy Medigap coverage early on. Medigap is supplemental insurance, and it could kick in when you’re facing hefty costs like coinsurance for a hospital stay or skilled nursing facility.

Your initial Medigap enrollment window begins the month you’re enrolled in Medicare Part B and are 65 or older. And that window lasts six months.

It pays to buy your Medigap coverage during that time because you can’t be denied for pre-existing conditions. If you wait, you risk being denied coverage for your plan of your choice, or getting coverage at a (much) higher premium rate.

It’s natural to worry about money in retirement. But if you’re smart about Medicare, you can potentially lower some of your health-related expenses and stretch your nest egg further. So it pays to make these essential Medicare moves if you like the idea of having healthcare in retirement cost less.

If you’re planning to take Social Security in 2025, you’re likely nearing retirement. While that’s an exciting chapter in life, even small mistakes can sometimes throw a wrench in your plans — so it’s critical to ensure you have a strong plan heading into your senior years.

There’s not necessarily a right or wrong Social Security strategy, but there is one aspect that trips many retirees up: knowing how your claiming age will affect your lifetime benefit.

Your benefit will be locked in for life

The age you file for benefits will have an immediate and lifelong impact on your benefit amount. However, many people are unaware of just how much their decision will affect their monthly income.

Image source: Getty Images.

According to a 2025 survey from the Nationwide Retirement Institute, only 21% of U.S. adults can correctly name their full retirement age (FRA) — which is the age at which you’re entitled to your full benefit based on your work history. Your FRA will depend on your birth year, but everyone’s will fall between ages 66 and 67.

Filing before your FRA will result in a reduced payment, which is also a point of confusion for many people. The survey found that 40% of Americans believe that if they file for benefits early, their payments will automatically go up once they reach their FRA. In reality, though, these reductions are permanent, and those smaller payments will be locked in for life.

These reductions can be significant, too. If you have an FRA of 67 years old, filing at 62 will slash your checks by 30%. The average retired worker receives around $588 less per month at age 62 compared to age 67, according to 2024 data from the Social Security Administration.

Data source: Social Security Administration. Table by author.

Not knowing exactly how your age will affect your lifetime benefit amount is a simple mistake to make, so you’re in good company if you’re among the 40% of Americans in this boat. But if you’re heading into retirement expecting your benefit to increase by hundreds of dollars per month in a few years, it could be a costly mistake.

The best move you can make right now

Before you begin claiming benefits, one of the best things you can do is check your estimated benefit amount.

You can do this by reviewing your statements through your mySocialSecurity account online, where you’ll see an estimate of your future benefit based on your real earnings. This is also a prime opportunity to double-check that your earning history is correct, because if there’s any information missing or incorrect, it can affect your benefit amount.

The estimate you see on your statements is your full benefit amount, or the payment you’ll receive by filing at your FRA. From there, you can determine exactly how your claiming age will affect the size of your checks.

Data source: Social Security Administration. Table by author.

You can also file for benefits at any age between birthdays, but for every month you claim before your FRA, your benefits will be reduced slightly more. By having at least a rough estimate of how much will be deducted, it will be easier to plan accordingly.

Keep in mind, too, that if you’re filing after your FRA (up to age 70), that will also alter your benefit. If you have an FRA of 67 and you file at 70, you’ll collect your full benefit, plus a bonus of 24% per month.

There’s no right or wrong time to take Social Security, but it is important to know how that decision will affect your benefit. When you know what to expect from Social Security heading into retirement, you can rest easier knowing you’re as prepared as possible.

“Thank you so much for showing up this morning,” Sharon Nicholls said into a megaphone at 8 a.m. Wednesday outside a Home Depot in Pasadena.

As of Friday afternoon, no federal agents had raided the store on East Walnut Street. But the citizen brigade that stands watch outside and patrols the parking lot in search of ICE agents has not let down its guard—especially not after raids at three other Home Depots in recent days despite federal court rulings limiting sweeps.

Steve Lopez

Steve Lopez is a California native who has been a Los Angeles Times columnist since 2001. He has won more than a dozen national journalism awards and is a four-time Pulitzer finalist.

About two dozen people gathered near the tent that serves as headquarters of the East Pasadena Community Defense Center. Another dozen or so would be arriving over the next half hour, some carrying signs.

“Silence is Violence”

“Migrants Don’t Party With Epstein”

Cynthia Lunine, 70, carried a large sign that read “Break His Dark Spell” and included a sinister image of President Trump. She said she was new to political activism, but added: “You can’t not be an activist. If you’re an American, it’s the only option. The immigration issue is absolutely inhumane, it’s un-Christian, and it’s intolerable.”

Anit-ICE activists march through the Home Depot in Pasadena on Aug. 6.

(Genaro Molina/Los Angeles Times)

There are local supporters, for sure, of Trump’s immigration crackdown. Activists told me there aren’t many days in which they don’t field shouted profanities or pro-Trump cheers from Home Depot shoppers.

But the administration’s blather about a focus on violent offenders led to huge demonstrations in greater Los Angeles beginning in June, and the cause continues to draw people into the streets.

Dayena Campbell, 35, is a volunteer at Community Defense Corner operations in other parts of Pasadena, a movement that followed high-profile raids and was covered in the Colorado Boulevard newspaper and, later, in the New York Times. A fulltime student who works in sales, Campbell was also cruising the parking lot at the Home Depot on the east side of Pasadena in search of federal agents.

She thought this Home Depot needed its own Community Defense Corner, so she started one about a month ago. She and her cohort have more than once spotted agents in the area and alerted day laborers. About half have scattered, she said, and half have held firm despite the risk.

When I asked what motivated Campbell, she said:

“Inhumane, illegal kidnappings. Lack of due process. Actions taken without anyone being held accountable. Seeing people’s lives ripped apart. Seeing families being destroyed in the blink of an eye.”

Anywhere from a handful to a dozen volunteers show up daily to to hand out literature, patrol the parking lot and check in on day laborers, sometimes bringing them food. Once a week, Nicholls helps organize a rally that includes a march through the parking lot and into the store, where the protesters present a letter asking Home Depot management to “say no to ICE in their parking lot and in their store.”

Nicholls is an LAUSD teacher-librarian, and when she asks for support each week, working and retired teachers answer the call.

“I’m yelling my lungs out,” said retired teacher Mary Rose O’Leary, who joined in the chants of “ICE out of Home Depot” and “No hate, no fear, immigrants are welcome here.”

Sharon Nicholls gets a hug of support from another protester outside the Home Depot in Pasadena.

(Genaro Molina/Los Angeles Times)

“Immigrants are what make this city what it is … and the path to legal immigration is closed to everybody who doesn’t have what, $5 million or something?” O’Leary said, adding that she was motivated by “the Christian ideal of welcoming the stranger.”

Retired teacher Dan Murphy speaks Spanish and regularly checks in with day laborers.

“One guy said to me, ‘We’re just here to work.’ Some of the guys were like, ‘We’re not criminals … we’re just here … to make money and get by,’” Murphy said. He called the raids a flexing of “the violent arm of what autocracy can bring,” and he resents Trump’s focus on Southern California.

“I take it personally. I’m white, but these are my people. California is my people. And it bothers me what might happen in this country if people don’t stand firm … I just said, ‘I gotta do something.’ I’m doing this now so I don’t hate myself later.”

Nicholls told me she was an activist many years ago, and then turned her focus to work and raising a family. But the combination of wildfires, the cleanup and rebuilding, and the raids, brought her out of activism retirement.

“The first people to come out after the firefighters—the second-responders—were day laborers cleaning the streets,” Nicholls said. “You’d see them in orange shirts all over the city, cleaning up.”

The East Pasadena Home Depot is “an important store,” because it’s a supply center for the rebuilding of Altadena, “and we’re going out there to show our love and solidarity for our neighbors,” Nicholls said. To strike the fear of deportation in the hearts of workers, she said, is “inhumane, and to me, it’s morally wrong.”

Nicholls had a quick response when I asked what she thinks of those who say illegal is illegal, so what’s left to discuss?

“That blocks the complexity of the conversation,” she said, and doesn’t take into account the hunger and violence that drive migration. Her husband, she said, left El Salvador 35 years ago during a war funded in part by the U.S.

Pablo Alvarado, right, co-director of National Day Laborer Organizing Network, speaks to Anti-ICE protesters on Aug. 6.

(Genaro Molina/Los Angeles Times)

They have family members with legal status and some who are undocumented and afraid to leave their homes, Nicholls said. I mentioned that I had written about Pasadena Mayor Victor Gordo, who was undocumented as a child, and has kept his passport handy since the raids began. In that column, I quoted Gordo’s friend, immigrant-rights leader Pablo Alvarado, director of the National Day Laborer Organizing Network.

“Full disclosure,” Nicholls said, “[Alvarado] is my husband.”

It was news to me.

When the raids began, Nicholls said, she told her husband, “I have the summer off, sweetie, but I want to help, and I’m going to call my friends.”

On Wednesday, after Nicholls welcomed demonstrators, Alvarado showed up for a pep talk.

“I have lived in this country since 1990 … and I love it as much as I love the small village where I came from in El Salvador,” Alvarado said. “Some people may say that we are going into fascism, into authoritarianism, and I would say that we are already there.”

He offered details of a raid that morning at a Home Depot in Westlake and said the question is not whether the Pasadena store will be raided, but when. This country readily accepts the labor of immigrants but it does not respect their humanity, Alvarado said.

“When humble people are attacked,” he said, “we are here to bear witness.”

Nicholls led demonstrators through the parking lot and into the store, where she read aloud the letter asking Home Depot to take a stand against raids.

Outside, where it was hot and steamy by mid-morning, several sun-blasted day laborers said they appreciated the support. But they were still fearful, and desperate for work.

Jorge, just shy of 70, practically begged me to take his phone number.

Whatever work I might have, he said, please call.

[email protected]

July 29 (UPI) — Panama, Mexico and Costa Rica have emerged as leading destinations for U.S. retirees this year, offering a more affordable, safer and more comfortable lifestyle overseas, according to the 2025 Global Retirement Index prepared by International Living magazine.

The rising global population over age 65 — projected to reach 16% by 2050, according to Statista — is driving a wave of retiree migration focused on mild climates, access to quality healthcare and an active lifestyle with lower financial strain.

Data from the Social Security Administration show that more than 730,000 U.S. retirees receive their benefits while living abroad, with Latin America accounting for a growing share.

Panama tops the global retirement rankings for its accessible pensioner visa, political stability and retiree perks, including 25% discounts on electricity and restaurant bills, and up to 50% off cultural activities.

The cost of living there for a couple starts at about$2,400 per month. The country also offers 18-month temporary residency through a remote work visa.

Mexico ranks fourth, driven by its low cost of living, cultural diversity and affordable healthcare. According to the report, a retiree can live comfortably on about $1,500 a month. In tourist areas such as the Riviera Maya, monthly rent averages around $500.

Puerto Vallarta, San Miguel de Allende and Chapala remain among the most popular destinations for U.S. retirees.

Costa Rica, ranked third in the index, attracts retirees with its biodiversity, peaceful environment and high-quality medical care. Residency is available with a minimum monthly income of $1,000, and housing can be found starting at $550 a month.

The Central Valley is especially popular for its mild climate and proximity to top-tier healthcare services.

Rosmery Hernández, a professor at the National University of Costa Rica, said the country “has spent decades building a quality-of-life environment based on public policy, education and civic participation, which today makes it attractive to retirees from the United States and Europe.”

She also noted that Costa Rica offers a strong healthcare system, easy access to international flights and infrastructure that makes travel within the country easy.

However, Hernández warned that the growth of the international retiree market has accelerated gentrification in areas like Guanacaste, raising the cost of services and land for local residents.

“The challenge is finding a balance that allows local communities to coexist with new international residents, creating mutual benefits without triggering displacement,” she said.

While European countries like Portugal, Spain and France also rank among the top international retirement destinations, Latin America offers advantages such as geographic proximity to the United States, more flexible immigration policies and a cultural environment that feels more familiar to many Americans, according to the retirement index.

All three Latin American countries have strengthened their immigration frameworks and services to attract this demographic, as more U.S. citizens view retiring abroad as both a financially viable and socially enriching option.