A top priority for many Americans is saving for retirement. According to Bank of America’s 2025 Workplace Benefits Report, workers are focused on more than meeting basic financial needs. They want to thrive in retirement and plan to rely on several sources of income to do so. But with so many options, including Social Security, employer-sponsored retirement plans, personal investments and more, it’s not always clear which ones people lean on the most as they prepare for life after work. According to BOA ...

Social Security was never meant to be the sole source of a person’s retirement income: rather, it was part of a three-pronged approach that also includes pensions and personal savings. However, in the private sector, traditional pensions have largely been replaced by DC plans.Nearly three in four Americans expect to rely on Social Security in retirement, according to research from Empower. (2) But with an average monthly check of $2,008.31 for retired workers (as of July 2025), that won’t be enough for most ...

Core Insights - The article emphasizes the importance of having a strategic plan for retirement withdrawals to avoid the risk of running out of money during retirement [2] Group 1: Spending Needs - It is crucial to map out a budget that includes both needs and wants before deciding on withdrawal amounts from retirement savings [4] - Retirees should consider various expenses such as gym memberships, club fees, subscriptions, and travel when planning their budget [5] Group 2: Other Income Sources - American retirees often have additional income sources, such as Social Security, which should be estimated and factored into the withdrawal plan [6] - Other potential income streams may include part-time work or rental income from properties, contributing to a comprehensive understanding of financial needs [6] Group 3: Safe Withdrawal Rate - Establishing a safe withdrawal rate is essential to ensure retirement savings last throughout the retiree's lifetime [7] - The popular 4% rule is mentioned as a guideline for a balanced portfolio of stocks and bonds, but adjustments may be necessary based on individual portfolio composition [9] - For a portfolio heavily weighted in bonds, a lower withdrawal rate of 2.5% to 3% may be more appropriate, while a stock-heavy portfolio might allow for higher withdrawals [10] - The age at which withdrawals begin should also influence the withdrawal strategy, with early retirees needing to be more conservative [11]

Group 1 - Social Security is a crucial source of retirement income for millions, and understanding its rules and changes is essential for retirees [1] - In 2026, Social Security benefits will receive a 2.8% cost-of-living adjustment (COLA), which is slightly higher than the 2.5% increase in 2025, but may not significantly help due to rising costs [2][3] - Medicare Part B costs are increasing, which will reduce the impact of the COLA on retirees' monthly benefits [3] Group 2 - Tariff policies may contribute to rising prices, potentially causing the 2.8% COLA to lag behind inflation, although they could also lead to lower inflation if they slow down spending [4] - Retirees relying heavily on Social Security should consider backup plans, such as reducing expenses or seeking part-time work, in case the COLA does not provide sufficient support [5] Group 3 - Seniors can now earn more income without risking withheld benefits once they reach full retirement age, allowing for greater financial flexibility [6] - The earnings-test limit for those under full retirement age has increased to $24,480 in 2026, up from $23,400 in 2025, meaning that earnings above this threshold will result in $1 in benefits being withheld for every $2 earned [8]

Retiring next year sounds ambitious, but I wanted to know if it was actually possible, so I asked ChatGPT to lay out exactly what someone needs to do to retire in 2026. The AI treated the question seriously and broke down retirement into a step-by-step timeline. The answer was more actionable than I expected. ChatGPT didn’t give generic advice about saving more money. Instead, it mapped out specific tasks for the final months before retirement with deadlines attached. Calculate Your Number First ChatGP ...

The rise in Medicare premiums and deductibles will be offset by a cap on drug prices. The Inflation Reduction Act of 2022, championed by then-President Joe Biden, places a $2,000 annual cap on overall prescription drug costs, representing potentially huge savings for retirees.If you have a high-deductible health plan, you likely have access to a health savings account. Take full advantage of it. In 2026, HSA contribution limits are $4,400 for individuals and $8,750 for family coverage, with an extra $1,000 ...

Group 1 - The article emphasizes the importance of being prepared for retirement, particularly for those planning to retire in 2026, by assessing financial readiness and lifestyle changes [1] - It suggests creating a detailed budget to understand monthly spending during retirement, accounting for potential increases in certain expenses and decreases in others [2][3] - The article highlights the need to evaluate expected monthly income from various sources, including Social Security, retirement accounts, and pensions, to ensure alignment with projected spending [4][5][6] Group 2 - It advises conducting an income checkup before retirement and planning for health insurance, as well as organizing activities to utilize free time effectively [7] - The article introduces the 4% rule as a common withdrawal strategy for retirees, illustrating how it can provide a sustainable income from retirement savings [8]

Core Insights - Social Security is a critical component of retirement income for many seniors, with 67% relying on it for over half of their total income [1] - A significant portion of seniors, approximately one-third, have additional income sources, which necessitates a focus on tax minimization strategies during retirement [1][2] Group 1: Retirement Priorities - It is essential for retirees to clarify their top priorities before sequencing their income sources [3] - A 2023 report indicates that 20% of retirees prioritize creating an inheritance or financial legacy, which influences how they should manage their income sources to maximize savings longevity [4] - Conversely, some retirees prioritize maximizing income and lifestyle expenses during their healthier years, with 35% expressing concern about declining health requiring long-term care [5] Group 2: Income Sequencing Strategies - Retirees with diverse income sources, including Social Security and tax-advantaged accounts, are in a favorable position to develop a tailored income strategy [7] - Establishing clear priorities allows retirees to work with financial advisors to create a comprehensive strategy for claiming retirement income from various sources [6]

Hall said, "Social Security has a cost-of-living adjustment [that] keeps up with inflation. Our investments will also adjust over time if we keep some growth in the mix. The real lever is spending. When prices bite, pull back on nonessentials. Maybe fewer big trips for a season. Maybe different choices than what you have always done. Keep core bills matched to steady income and let the portfolio work."We don’t marry a 3% or 4% rule [for the percentage of your retirement funds to withdraw each year ]. We set ...

Key Points You may be eligible for spousal benefits from Social Security even if you never worked. You have to wait for your spouse to file for Social Security to claim spousal benefits. Those benefits are only worth so much, though their value increases if they become survivor benefits. The $23,760 Social Security bonus most retirees completely overlook › Social Security is a program that can be full of surprises. For example, did you know that if you claim benefits early and regret your decisi ...