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For the Week of September 19th, 2025
Is Social Security About to Let Seniors Down? 2026 COLA Update and 10 Global Retirement Hotspots Revealed
This week’s headlines touched every corner of retirement - from questions about Social Security’s future to new tax breaks, the burden of debt, and even the growing appeal of life abroad. Each carries its own challenges and opportunities, and together they paint a picture of how quickly the retirement landscape is shifting.
By RetirementRedFlags.com
Follow the latest shifts this week to safeguard your income, spot new opportunities, and strengthen your retirement future.
1. Social Security: Updated COLA Forecast
Yahoo Finance reports that the projected 2026 cost-of-living adjustment (COLA) for Social Security benefits could come in lower than many had hoped. While retirees just saw a bump in benefits for 2024, slowing inflation is expected to mean smaller adjustments ahead. This matters because for many retirees, Social Security makes up the bulk of monthly income.
Action Steps:
✔ Build flexibility into your retirement budget to prepare for smaller COLA increases.
✔ Consider supplemental income sources (part-time work, annuities, or investment income).
✔ Regularly review how inflation and COLA updates affect your long-term retirement plan.
2. Could Full Retirement Age Be Moving Higher?
Fox Business highlighted discussion from the Trump campaign about potentially raising the retirement age as a way to address Social Security’s looming insolvency concerns. While no policy changes have been enacted, these conversations hint at a possible shift in when future beneficiaries might be able to claim full benefits.
Action Steps:
✔ Stay informed on proposed Social Security changes and how they might affect eligibility.
✔ Talk with younger family members about how possible retirement age changes could impact their planning.
✔ Explore strategies to bridge income if future benefits are delayed (e.g., retirement savings withdrawals or part-time work).
3. 16 States Offering Breaks to Seniors
Good news from Yahoo Lifestyle: 16 states now offer some form of exemption or reduced taxes for senior citizens. These range from excluding Social Security income from state tax to offering property tax relief.
Action Steps:
✔ Check your state’s rules for senior tax exemptions and make sure you’re claiming every available break.
✔ If considering a move, compare state tax policies as part of your decision-making process.
✔ Work with a tax professional to see if relocating could meaningfully improve your retirement income.
4. The 37% Advantage: What Debt-Free Retirees Know That Others Don’t
A new Investopedia analysis revealed that only 37% of retirees are living debt-free. Mortgages, credit cards, and medical bills continue to weigh on many older Americans, often eroding the financial freedom that retirement should provide. For many, these lingering obligations mean dipping deeper into savings, delaying lifestyle goals, or even rejoining the workforce. Debt in retirement isn’t just a financial strain - it can also take a toll on peace of mind.
Action Steps:
✔ Prioritize paying down high-interest debt (like credit cards) first.
✔ Explore refinancing options for mortgages to reduce monthly payments.
✔ Consider downsizing your home to free up equity and reduce costs.
✔ Build a realistic retirement budget that includes debt payments so they don’t overwhelm your income.
5. Life After Work, Anywhere: The Best Places Abroad to Retire Now
For those dreaming of life abroad, Yahoo Lifestyle ranked the 10 best countries to retire right now. These destinations were chosen for affordability, healthcare, and quality of life - important factors for retirees who want both adventure and stability.
Beyond lower living costs, many of these countries also offer vibrant expat communities, cultural enrichment, and a slower pace of life that appeals to retirees seeking a fresh start. Still, the allure of retiring overseas comes with complexities, from navigating residency rules to understanding tax implications.
Action Steps:
✔ Research healthcare access and insurance options before choosing a country.
✔ Review visa and residency requirements for retirees.
✔ Calculate the full cost of living abroad, including travel back to the U.S. to visit family.
✔ Talk with a financial advisor about tax implications of retiring overseas.
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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