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What to Know for Wednesday, May 6th, 2026: |
1: 2027 Social Security COLA estimate jumps to 3.8% as Iran war and gas prices surge inflation |
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Inflation accelerated to 3.3% in March, could push COLA higher: Latest forecasts put the 2027 cost-of-living adjustment between 2.8-3.1%, but inflation spiked in March due to soaring energy prices from the Iran conflict — damaged oil infrastructure will likely keep prices elevated even if the conflict ends, potentially pushing the COLA to 3.8% or higher. 3.8% COLA means $79/month extra for average retiree vs. $58 at 2.8%: A 3.8% COLA would increase the average retired worker's benefit from $2,081 to $2,160 monthly ($79 increase), compared to $2,139 with a 2.8% COLA ($58 increase) — disabled workers would see similar gains, from $1,635 to $1,697. Higher COLAs are bad news in disguise — inflation eats buying power: Social Security benefits have historically failed to keep up with inflation over long periods — The Senior Citizens League research shows the buying power of Social Security fell 20% between 2010-2024 because COLAs were often insufficient, so "lower inflation (and smaller COLAs) would actually be better for Social Security beneficiaries."
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➜ Read the full article from the Motley Fool here. |
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2: Average Social Security benefit for men is $2,282/month — $200 more than overall average |
26 million men collect retired-worker benefits averaging $27,387/year: As of December 2025, the average monthly Social Security benefit for men was $2,282.28 (about $27,387 annually) — this is roughly $200 more than the $2,071 average across all retired workers, and men represent just under half of the over 53 million retirees collecting benefits. Benefits based on your 35 highest-earning years: To be eligible, you need at least 40 work credits (equivalent to 10 years of work), then your benefit is calculated using your 35 highest-earning years — this is why men, who historically have had higher lifetime earnings, receive higher average benefits than women. Delay to 70 for 8% annual increase, supplement with 401(k) or IRA: Your benefits grow by 8% each year past full retirement age until age 70, turning average benefits into much higher payments — but 31% of Americans expect Social Security to be their primary retirement income source, so also take advantage of employer 401(k) matches and open an IRA for tax-deferred or tax-free growth.
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(Image Credit: Getty Images) |
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➜ Read the full article from the Investopedia here. |
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3: 3 in 10 Americans in their 50s have no retirement savings or pension — even those with accounts may fall short |
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(Image Credit: Getty Images) |
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70% have retirement account or pension, but 30% have neither: Federal Reserve data shows about 61% of households ages 50-59 have a retirement account like 401(k) or IRA, rising to 70% when pensions are included — leaving roughly 3 in 10 households approaching retirement "without a key source of long-term financial support." Median $162,000 balance generates only $6,500/year income: Among those who do have retirement savings, the median balance of $162,000 would produce roughly $6,500 annually using the 4% withdrawal rule — combined with average Social Security of $25,000/year, a single retiree might have $31,500 total, while a two-benefit household could have $56,500. Fidelity benchmark: 6x salary by 50, but catch-up still possible: For someone earning $70,000, you should have about $420,000 saved by age 50 and $560,000 by age 60 — far above median balances — but workers 50+ can use catch-up contributions (adding thousands more to 401(k)s/IRAs annually), maximize employer match, and adjust spending to improve their position.
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➜ Read the full article from Investopedia here. |
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Here’s What You Missed on YouTube: |
Check out our new YouTube videos for Wednesday, May 6th. |
Your EBT Card Buys Restaurant Meals in These 9 States — Here's How |
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Your EBT Card Buys Restaurant Meals in These 9 States — Here's How |
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This newsletter is for information only. Always confirm your options directly with Social Security, Medicare, Medicaid, or a qualified advisor before making big decisions about your benefits. |
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