FINANCIALLY FOCUSED
December 2025 Newsletter
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2026 SOCIAL SECURITY COLA: WHAT YOU NEED TO KNOW
The Social Security Administration (SSA) has announced a 2.8% cost-of-living adjustment (COLA) for 2026, which is up from 2.5% in 2025, but is still among the smaller increases in recent years, according to a Kiplinger article headlined, 2026 Social Security COLA is 2.8%: What You Need to Know.
For the average retiree, that translates into an increase of about $56 per month, with the average monthly benefit rising from roughly $2,015 to $2,071. Married couples can expect an average monthly check to climb from about $3,120 to $3,208.
PUTTING IT IN PERSPECTIVE
While the 2.8% increase is slightly above the recent average (around 2.6% over the past 20 years), it may not keep pace with rising costs in housing, health care, or other retirement-specific expenses. As the article notes, a 2.8% increase is modest, especially for retirees whose cost increases may be higher.
OTHER KEY UPDATES
Beyond the COLA, two other Social Security figures are changing in 2026. The taxable wage base, which is the maximum amount of earnings subject to Social Security tax, will rise from $176,100 in 2025 to $184,500.
Additionally, the amount needed to earn a Social Security work credit will increase slightly.
In 2026, you’ll earn one credit for every $1,890 of income. You can earn up to four credits per year, and most workers need 40 credits total (roughly 10 years of work) to qualify for full retirement benefits at their full retirement age.
WHAT YOU SHOULD DO NEXT
Review your benefit statement with your financial services professional and calculate if the increase will meet your expected costs. If you’re still working and collecting benefits early, check how earnings limits could affect your payments.
SOURCE
https://www.kiplinger.com/retirement/social-security/social-security-cola-2026
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WHAT WE’RE READING
There’s been no shortage of outstanding and informative financial news stories during the last few weeks, here’s some of our favorites:
- Thinking about purchasing a new home? Check out what this Yahoo Finance article has to say about mortgage rates, Will mortgage rates ever drop to 3% again?
- An article from Kiplinger, Five Smart Moves for Retirement Health Care: Maximize Your HSA and Medigap Savings, has some tips for retirement healthcare strategy.
- An article from U.S. News and World Report, Will Younger Generations Win the Retirement Race? notes that a recent survey indicates millennials may be better prepared for retirement than previously thought.
- If you’re about to begin your holiday shopping or, more importantly, setting a budget for your holiday shopping the CNBC article, Tariffs are expected to start showing up more in consumer prices as holiday shopping season starts is a can’t miss.
- When approaching retirement, many people ponder enjoying their golden years abroad, assuming a lower cost of living. But the MarketWatch article, Retiring abroad is touted as a money saver — but it isn’t always cheaper explains that assumption may be wrong.
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SPINACH-ARTICHOKE CHRISTMAS SKEWERS
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Let's Get Baking!
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Jeffrey Bird, Ronald Bird and Andrew Bird offer Investment Advisory Services through Gradient Advisors, LLC (Arden Hills, MN 877-885-0508), an SEC Registered Investment Advisor. Gradient Advisors, LLC and its advisors do not render tax, legal, or accounting advice. Financial Concepts, Inc is not a registered investment advisor and is independent of Gradient Advisors, LLC. Insurance products and services are offered through Jeffrey Bird, Ronald Bird and Andrew Bird, independent agents.
This communication may contain information that is proprietary, privileged, or confidential, or otherwise legally exempt from disclosure. If you are not the named addressee, you are not authorized to read, retain, copy, or disseminate this memo or any part of it. If you have received this memo in error, please notify the sender immediately by Email or fax, and destroy all copies of this communication. Please be further advised that, pursuant to the Bank Secrecy Act, the USA PATRIOT Act, and similar laws, any communication in this e-mail is subject to regulatory, supervisory, and law enforcement review.
Financial Concepts, Inc, Jeffrey Bird, Ronald Bird, Andrew Bird and Gradient Advisors, LLC are not affiliated with or endorsed by the Social Security Administration or any government agency.
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Jeff Bird
Financial Advisor,
Gradient Advisors, LLC
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Ron Bird
Financial Advisor,
Gradient Advisors, LLC
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Andrew Bird
Financial Advisor,
Gradient Advisors, LLC
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