INFORMATION AND TOOLS TO HELP YOU BUILD YOUR FINANCIAL FUTURE
In The Know
According to a July 2025 AARP study, most Americans overestimate their Social Security knowledge. For example, nearly half believe Social Security benefits will be cut by at least 50% once the combined retirement and disability trust fund is potentially depleted in 2034 (payments are projected to be reduced by only an estimated 19%). In addition, 41% didn’t realize that benefits could be claimed as early as 62, and 66% didn’t know that waiting until age 70 to claim benefits will maximize payments. If you haven’t already, open a “my Social Security account” to view future benefits and make sure your recorded income matches your salary history. In addition, you can model different monthly benefit amount scenarios based on taking Social Security benefits at age 62 through age 70.
Inquiring Minds
Q: What is the most I can save this year in my workplace retirement plan?
A: You can contribute up to $24,500 in 2026. The additional catch-up contribution for savers age 50 and older is $8,000 in 2026, for a potential total contribution of $32,500. Under a change made in SECURE ACT 2.0, a higher catch-up contribution limit applies for employees aged 60‒63. For 2026, this higher catch-up contribution limit is $11,250, for a potential total contribution of $35,750. These limits apply to savers with a 401(k) plan, 403(b) plan and most 457 plans.
To Do List
When was the last time you reviewed your beneficiary designations for your major assets, including your retirement plan? The start of each new year is a good time for some financial housekeeping. Make sure your current designations still match your wishes, especially if you have had any major life changes, such as marriage, divorce or the birth or adoption of any children.
Financial Fitness
A “CD ladder” is a strategy that involves dividing your money across several certificates of deposit (CDs) with staggered maturity dates, so that a portion of your funds becomes available at regular intervals. This approach helps you earn higher interest rates than a traditional savings account while keeping some liquidity for upcoming needs. CD ladders are especially useful for funding short- to mid-term financial goals when you know you’ll need the money within a few months to a few years. Examples include building a vacation fund, saving for a wedding, planning a home renovation or covering upcoming tuition payments.
