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For the Week of October 24th, 2025
2026 COLA Adjustments, Policy Shifts, and the Changing Face of Grandparenting
This week’s retirement news offered more than numbers - it revealed a changing story of how Americans live, age, and adapt. With Social Security adjustments on the horizon, inflation still nipping at budgets, and new research redefining what it means to be a grandparent, it’s news worth paying attention to for anyone navigating life after work.
By RetirementRedFlags.com
The landscape may shift, but smart retirees adapt. Stay informed, safeguard your savings, and keep your future secure.
1. Social Security 2026 COLA is Announced at 2.8%
Social Security recipients can look forward to a 2.8% cost-of-living adjustment (COLA) beginning in January 2026, translating to roughly $56 more per month for the average beneficiary. The increase reflects moderating inflation but still falls short of the rising costs many retirees face in daily expenses like healthcare and housing. While the adjustment provides some relief, it also highlights how even small inflation changes can significantly impact retirees living on fixed incomes. The announcement is a reminder that long-term planning remains essential as living expenses continue to climb faster than benefit increases.
Action Steps:
✔ Review your monthly budget to see how the 2.8% increase will affect your cash flow starting in January 2026.
✔ Factor rising healthcare and utility costs into your spending plan so the COLA doesn’t get swallowed up by inflation.
✔ Check whether the extra income could change your tax situation or affect Medicare premium brackets.
2. Which Grandparent Has the Biggest Impact?
A new study has identified one type of grandparent as having the most significant influence on grandchildren who experience trauma. The research found that maternal grandmothers often play the central role in providing emotional support and stability, particularly during times of family disruption. The findings highlight how intergenerational relationships remain a cornerstone of family life, especially when younger generations face challenges. As family dynamics evolve and grandparents take on more active caregiving roles, the study reinforces how crucial these bonds are in shaping children’s resilience and emotional well-being.
Action Steps:
✔ Consider setting aside time or modest funds for shared experiences that build emotional connection, like outings, travel, or educational support.
✔ Talk with your adult children about how you can best support the family without overextending your finances or energy.
3. The Debate Over Raising the Retirement Age
Conversations around raising the mandatory retirement or full-benefit age are resurfacing in Washington as policymakers explore ways to strengthen Social Security’s financial footing. Advocates for an increase argue that longer life expectancies and a shifting workforce make the system’s current structure unsustainable, while opponents caution that extending the retirement age could disadvantage Americans in physically demanding or lower-income jobs. Although no immediate policy changes are expected, the renewed debate underscores the pressure lawmakers face to secure the program’s future and the potential implications for those planning their retirement timelines.
Action Steps:
✔ Stay informed about proposed Social Security changes and how they might affect your claiming strategy.
✔ If you’re approaching retirement, run projections for claiming at different ages to understand how timing impacts your benefits.
4. Inflation Persists Despite Cooling CPI Trends
The latest Consumer Price Index (CPI) report showed that inflation, while easing from its peak, continues to rise in areas that disproportionately affect retirees. Prices for essentials such as healthcare, utilities, and housing remain stubbornly high, leaving many on fixed incomes feeling the squeeze. The data suggests that even as broader inflation moderates, retirees are still contending with a higher “personal inflation rate,” driven by the goods and services they rely on most. This ongoing cost pressure could offset much of the upcoming Social Security COLA, particularly as healthcare premiums and energy costs continue to trend upward.
Action Steps:
✔ Track your own “personal inflation rate” - the costs that hit your household hardest, such as healthcare, groceries, and energy.
✔ Revisit your emergency fund and ensure you have enough liquidity to handle ongoing price increases.
✔ Review your investment mix to make sure it includes assets that help offset inflation, such as dividend stocks or inflation-protected bonds.
5. Grandparents Are Getting Older: What This Means
A new article revealed that seniors today are older than ever before, reflecting demographic shifts such as delayed parenthood and increased life expectancy. The average age for first-time grandparents has steadily risen over the past decade, with many entering the role later in life but with greater financial stability and better health. This shift is transforming what it means to be a grandparent - blending traditional caregiving responsibilities with active lifestyles, travel, and even continued professional pursuits. The data paints a picture of a generation redefining how they spend their later years and connect with younger family members.
Action Steps:
✔ Prioritize your health, mobility, and wellness so you can maintain independence and enjoy an active lifestyle well into your later years.
✔ Consider how caregiving, family support, or helping loved ones may fit into your long-term retirement goals
✔ Embrace this new phase of life by exploring travel, community involvement, and hobbies that bring purpose and fulfillment.
If you have any questions about the headlines that hit the news this week, we are answering questions in our free Facebook group The Retirement Red Flags Community. Click below and we will make sure you get added.
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