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Some retirees ‘wish it would be more’

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10 months ago

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People shop in Bayonne, New Jersey on April 8, 2025.

Charly Triballeau | Afp | Getty Images

Social Security and Supplemental Security Income beneficiaries will soon find out how much their benefit checks will increase next year.

Due to the federal government shutdown, the Social Security 2026 cost-of-living adjustment announcement, initially scheduled for Oct. 15, has been postponed to Friday. Nearly 75 million beneficiaries will see the COLA reflected in their January checks.

Experts have estimated the Social Security COLA for 2026 may be in the range of 2.7% to 2.8%, based on the latest available consumer price index data. That’s in line with the long-term average. But for retirees and other beneficiaries who rely on their benefit payments to cover essential expenses, the size of the increase might not ease their struggle with higher prices.

“I just wish it would be more,” said Kathryn Bailey, 74, of Washington, D.C.

What you need to know about Social Security

Bailey, a retired oncology researcher, remembers when the 8.7% cost-of-living adjustment was put in place in 2023 in response to the post-pandemic spike in inflation. That COLA set a four-decade record for the inflation adjustment.

The approximate $135 monthly increase Bailey received then “helped, but I used it all,” she said.

The projected increase for 2026 “won’t do anything,” she said, citing high health care, rent, food and other cost increases.

Retirees’ costs have outpaced inflation

Experts estimate the anticipated 2.7% to 2.8% possible increase for 2026 would add about $54 more to the average monthly retirement benefit check.

The size of the Social Security COLA is calculated each year based on the pace of inflation. So if the rate of inflation is higher, so is the COLA. And when inflation is lower, the annual adjustment is lower. In some years — most recently in 2016 — it has even been zero if there is no inflation increase from one year to the next.

Because the rate of inflation has come down in recent years, retirees and other Social Security beneficiaries have seen more modest cost-of-living adjustments. In 2024, the COLA was 3.2% and this year it was 2.5%.

The average COLA over the past 20 years has been 2.6%, according to The Senior Citizens League, a nonpartisan senior group.

The cost of retirement has outpaced inflation, according to recent research from Goldman Sachs Asset Management. While retirees’ spending increased at a 3.6% annual rate from 2000 to 2023, the consumer price index went up by 2.6% over that time, according to the firm.

While in recent years the pace of inflation has subsided overall from post-pandemic highs, some prices have stayed elevated.

The measurement used to calculate the COLA – the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W – shows that year-to-date increases for certain categories like household energy, motor vehicle maintenance and motor vehicle insurance have outpaced the average.

COLA provides ‘significant increases’ over time

Yet some experts say the Social Security cost-of-living adjustment provides inflation protection that is difficult to match elsewhere.

“A 20% lift over four years is life changing, even though it might not match the economy itself,” David Freitag, a financial planning consultant and Social Security expert at MassMutual, said of the recent cost-of-living adjustments.

“These are significant increases that make a difference in people’s lives,” Freitag said.

Very few pension-type income streams offer similar types of annual adjustments, Freitag said. Annuities that offer similar features are “incredibly expensive,” he said.

Starting at age 62, the cost-of-living adjustments are built into benefits, Freitag said. Prospective retirees do not have to claim benefits then in order for those increases to be recognized in their benefit checks once they do eventually claim, he said.

The COLA plays a “crucial role” in helping retirement income keep pace with inflation and is a “lifeline of independence and dignity” for older Americans, AARP CEO Dr. Myechia Minter-Jordan said in a statement.

“Yet even with the COLA, 77% of older adults still face challenges covering basic expenses,” Minter-Jordan said, citing forthcoming AARP research.

Proposals suggest other ways to measure future COLAs

Some experts and advocates have questioned whether another formula would be better suited to measure the inflation retirees experience.

Advocacy groups including The Senior Citizens League have lobbied to have the measure for the COLA changed to the Consumer Price Index for the Elderly, or CPI-E. That index puts greater emphasis on categories like medical care, housing and recreation, according to the Bipartisan Policy Center.

Other proposals have called for changing the calculation to be based on the Chained CPI, which takes into account the substitutions consumers make in response to inflation, such as opting to buy chicken when beef prices rise.

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While Social Security’s chief actuary has estimated that using the CPI-E would increase future annual COLAs by about 0.2 percentage points, the Bipartisan Policy Center gauges that opting for the Chained CPI would reduce future annual COLAs by about 0.3 percentage points.

Increasing or reducing future COLAs would impact the solvency of Social Security’s trust funds, which already are projected to run out in 2034. At that point, 81% of benefits will be payable unless Congress enacts changes sooner, according to the latest annual report from Social Security’s trustees.

Another suggested change is limiting the size of the COLAs for individuals who receive the largest benefits. The Committee for a Responsible Federal Budget estimates that one model of such a proposal could close one-tenth of Social Security’s solvency gap while still providing full inflation protection for most beneficiaries.

D.C.-based retiree Bailey said she would like to see the COLA calculated another way to match the actual increases showing up in areas like health care, mortgage, rent and utility costs.

“I wish they would sit down and consider the percentage of things that have gone up,” Bailey said.

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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