Core Insights - The 2026 Social Security cost-of-living adjustment (COLA) is set at 2.8%, resulting in an average increase of $56 per month or $672 per year for retirees, which may not sufficiently cover rising living costs [1][2][8] Group 1: Social Security Adjustments - The average senior's retirement benefit will increase by $56 monthly, totaling $672 annually, which may not be adequate for inflationary pressures [2][8] - The 2.8% COLA is slightly above the historical average but is not expected to significantly impact most beneficiaries' financial situations [1] Group 2: Supplementing Income - Personal savings can be utilized to cover shortfalls from Social Security, with options for tax-deferred and Roth account withdrawals [4][5] - Part-time work is suggested as a viable option for those with limited savings, providing a steady income stream while allowing for flexible hours [6] - Supplemental Security Income (SSI) may be available for low-income seniors to help manage expenses [8] Group 3: Earnings Test and Benefits - Beneficiaries can earn up to $24,480 without losing benefits; earnings above this threshold will result in a reduction of benefits [9] - Once beneficiaries reach their full retirement age (FRA), the earnings test rules change, allowing for higher earnings before benefits are reduced [9]

Group 1 - The article discusses the implications of inheriting an IRA, particularly focusing on the tax consequences and options available for managing inherited assets [1][5] - It highlights the importance of Required Minimum Distributions (RMDs) and how they apply to inherited IRAs, emphasizing that individuals must start withdrawing a certain amount once they reach age 73 [1] - The article provides a financial overview of a widow's situation, indicating she has approximately $1.3 million in assets, including her late husband's IRA valued at $270,000 and a paid-off home worth $590,000 [2][3] Group 2 - The article outlines the potential growth of inherited and Roth IRAs, projecting that with a 7% annual return and $7,000 annual contributions, the inherited IRA could exceed $1 million in 20 years [8] - It discusses the financial considerations of rental properties, questioning whether to keep or sell a rental property valued at $428,000, and the potential returns from investing in the S&P 500 [9] - The article suggests planning for future care of a special-needs child through maximizing Roth IRA contributions and exploring special-needs trusts to protect eligibility for federal aid [10][12] Group 3 - The article mentions Social Security survivorship benefits, explaining that a surviving spouse can receive a percentage of the deceased worker's basic benefit amount, depending on their age [13] - It emphasizes the need for careful financial planning and the importance of taking incremental steps towards achieving long-term financial stability [13]