A recent study by the Alliance for Lifetime Income highlights a growing trend: more Americans of retirement age are delaying their exit from the workforce. 

While the traditional idea of retirement once meant stepping back at 65 with a comfortable pension and Social Security benefits, the reality today is far more complex. Financial pressures, evolving career paths, and personal fulfillment are driving people to work longer than ever before.

One of the biggest reasons people are staying employed longer is the rising cost of living. Inflation has significantly reduced the purchasing power of retirement savings, leaving many older adults worried that their nest egg won’t last. 

Healthcare, housing, and everyday expenses continue to climb, and Social Security benefits alone often fall short. For many, postponing retirement is less a choice than a financial necessity.

The longevity risk

Americans are living longer, which is both a blessing and a financial challenge. A person retiring at 65 may now live another 25 to 30 years. That extended retirement period requires much larger savings than previous generations needed. Concerns about outliving savings, sometimes referred to as “longevity risk,” push many to keep working, building additional financial security before making the transition.

Retirement is no longer seen solely as a time of leisure. Many people in their late 60s and 70s continue working because they find purpose, identity, and social connection in their careers. Others explore part-time work, consulting, or starting new businesses, viewing later years as an opportunity to stay engaged rather than withdrawing entirely. In fact, work itself has become a source of stability, both financial and emotional, for older adults.

The shifting retirement landscape

The study focuses on a broader cultural and economic shift. Retirement is no longer a one-size-fits-all milestone but rather a flexible stage of life. Some are working longer to ensure financial security, while others choose to delay retirement to remain active and fulfilled. For many, it’s a blend of both necessity and choice.

As Americans continue to navigate these changes, the concept of retirement will likely keep evolving, becoming less about leaving work behind entirely and more about reshaping what work and financial independence look like in later life.

Current projections suggest Social Security recipients could receive a 2.7% cost-of-living adjustment (COLA) in 2026. That’s the good news.

Here’s the bad news: This year’s higher healthcare costs could consume much of the gain, leaving many older Americans with little to no improvement in their monthly budgets.

The Social Security Administration calculates COLA based on general consumer inflation, but retirees spend disproportionately on healthcare, an expense that continues to rise faster than overall prices. 

Medicare premiums, prescription drug costs, and out-of-pocket expenses are all projected to increase in the coming year. For many beneficiaries, these higher medical bills could offset or even surpass the modest boost from COLA.

The hidden equalizer

A key factor is Medicare Part B premiums, which are automatically deducted from Social Security checks. When these premiums rise, they directly reduce the net increase retirees see from COLA. Analysts note that even a relatively small bump in premiums can swallow most of the adjustment, particularly for those living on fixed incomes.

Healthcare is already one of the biggest expenses for older adults, and as life expectancies increase, so does the duration of these costs. Retirees often face the double challenge of limited income growth and rising medical needs. While COLA was designed to help Social Security keep pace with inflation, the mismatch between broad inflation measures and retiree-specific expenses is leaving many behind.

Advocates argue that Social Security’s inflation formula should better reflect the spending realities of retirees, especially the steep rise in healthcare. Without reform, seniors will continue to face financial pressure each year as their COLA gains are absorbed by medical costs.

Americans are living longer, but a new study suggests longevity could be increased even more if aging Americans addressed their health concerns.

A new survey from the Pritikin Longevity Center has identified a paradox in the way South Floridians view their health. While residents report thinking about their weight an average of five times per week, a staggering 87% admit they delay addressing health concerns because of work, family, and daily responsibilities.

“This survey highlights an almost universal issue we should all address,” said William Donovan, president of the Pritikin Longevity Center. “Prioritizing your health isn’t selfish, it’s essential, especially for the people in your life who count on you.” 

Donovan emphasized that sustainable lifestyle changes are key to lasting wellness, rather than quick fixes.

Perception and reality

The research found that half of respondents said they feel younger than their actual age. But this optimism may be misleading, experts warn, especially in the face of rising obesity and metabolic disease rates. Shifting social norms around body size mean that what many consider a “normal” weight today is significantly higher than in past decades, potentially obscuring risks tied to biological aging.

One of the most surprising findings from the survey is that men in South Florida (47%) are slightly more likely than women (43%) to consider using GLP-1 drugs for weight loss — challenging traditional assumptions about who seeks medical intervention for weight management. 

However, the majority of those open to treatment cited appearance as their primary motivator, rather than long-term health benefits.

Despite rising interest in these medications, nearly half of consumers surveyed (47%) were unaware that lifestyle changes such as diet and exercise can help manage GLP-1 side effects. The data underscores a widening gap in public health education around medical and lifestyle-based approaches to weight control.

Expert advice

The Mayo Clinic advises seniors to manage their weight by adopting lasting healthy lifestyle habits, focusing on nutritious eating and regular physical activity rather than short-term diets or severe calorie restriction.

Key recommendations include:

Focus on Healthy Eating Habits

• Eat more fruits and vegetables: Seniors are encouraged to make these the foundation of their meals, as these foods are filling, low-calorie, and promote overall health.
• Choose whole grains and healthy fats: Incorporating whole foods like grains, nuts, and lean proteins helps maintain energy and satiety.
• Avoid unhealthy snacking and sugary foods: Limiting processed foods and sugar is recommended, except for natural sugars from fruits.
• Portion control: Learning to estimate and manage portion sizes is important, but calorie counting is generally not required.

Increase Physical Activity

• Aim for at least 30 minutes of moderate activity daily, such as brisk walking, gardening, or cleaning; more activity can benefit weight loss or maintenance.
• Include movement throughout the day, like taking the stairs or walking while running errands, not just formal exercise.

Build Sustainable Habits

• The Mayo Clinic Diet emphasizes adopting healthy habits and breaking unhealthy ones for long-term weight management success.
• Habits to build include eating healthy breakfasts, tracking food and activity, and preparing meals at home.
• Setting realistic and personal goals helps seniors stay motivated and manage setbacks along the way.

Over the next two months, seniors will likely hear a lot about projections for the 2026 Social Security cost-of-living adjustment, which will be formally announced in October. Until then, there will be a lot of guesses about its amount.

Scammers realize that the subject is top of mind with beneficiaries and are already hatching schemes to cash in. 

“They’ll claim that you have to apply for that increase and give you a link to go apply,” said Troy Baker, the vice president of Strategic Partnerships and Market Expansion with the Better Business Bureau of Michigan. “And guess what you need to provide in that link? Your social security number.”

Seniors should remember the Social Security Administration will only contact you through the mail, so if you get a text, email or phone call that claims it’s from them, it’s a scam. Also remember that any cost-of-living increases will happen automatically.

Because seniors are attractive targets, scammers have other dirty tricks up their sleeves:

1. Impersonation Phone Calls
   Scammers often call claiming your Social Security number has been “suspended” due to suspicious activity. They may threaten arrest, loss of benefits, or frozen accounts unless you make immediate payments, often through gift cards or wire transfers.
2. Phishing Emails and Texts
   Fraudulent messages may look official, using SSA logos and professional formatting. These messages typically ask you to “verify your account” or click links that lead to fake websites designed to steal your information.
3. Fake Benefit Problems
   Some con artists pretend to help you fix “errors” in your benefit payments. They may request a fee to process corrections or promise faster service in exchange for your banking details.

How to Stay Safe

• Verify the Source: If you receive a suspicious call, hang up. Contact the SSA directly at 1-800-772-1213.
• Ignore Threats: The SSA will never threaten arrest, demand immediate payment, or request payment via gift cards.
• Protect Personal Data: Never share your Social Security number or banking details over the phone or email.
• Report Fraud: Suspicious activity should be reported to the SSA’s Office of the Inspector General at oig.ssa.gov.

Seniors should remain alert and skeptical of unexpected calls, emails, or texts about Social Security. Awareness and caution remain the strongest defenses against scammers who prey on trust and fear.

Everyone worries about the cost of living, but retirees may worry about it the most. After all, they’re on a fixed income while prices have gone up significantly over the last four years. Consumer sentiment surveys show seniors remain on edge.

True, the July Consumer Price Index showed inflation remained stable but many seniors worry about what could be ahead, as some tariff costs begin to be reflected in price tags.

Retirement living turned to several personal finance experts for advice on keeping spending in check, and here is the consensus:

• Track spending: Review monthly expenses to spot areas where costs can be trimmed—such as unused subscriptions, dining out, and unnecessary memberships.
• Prioritize needs vs. wants: Focus on essentials and cut back on discretionary purchases, especially as inflation makes nonessentials more expensive.
• Shop smart: Switch to generic brands, shop sales, and use price comparison and cashback apps for groceries and essentials.
• Stock up early: Consider bulk-buying non-perishables and household items before prices rise; joining warehouse clubs can reduce per-unit costs on frequently purchased goods.
• Avoid tariff-heavy products: Minimize spending on categories most affected by tariffs, like imported electronics, toys, and some apparel; seek domestic alternatives if possible.
• Lock in rates: Negotiate longer leases on rentals or refinance loans to benefit from lower interest rates, safeguarding against future increases.
• Pay down high-interest debt: Focus on reducing credit card and variable-rate loan balances, as rate hikes quickly make these debts more costly.

Investment and financial well-being

Beyond smart shopping, financial advisors say it is important to keep you money working. If it’s in the bank, shop around for a competitive interest rates.

• Earn Interest: Keep savings in accounts or certificates that yield dividends or interest to help money keep pace with inflation.
• Diversify Investments: Maintain a balanced investment portfolio (stocks, bonds, index funds) and consider inflation-protected options like I Bonds.
• Build an Emergency Fund: Safeguard finances against unexpected costs by saving three to six months’ worth of living expenses in a dedicated fund.

Personal finance advisors say that implementing some of these strategies can help consumers cope with inflation and tariffs, keeping more money in their pockets while maintaining financial security.

It’s no secret that retirement in the U.S. can be costly, but stretching a fixed income doesn’t always mean giving up sunshine, coastal breezes, or vibrant communities. A new study from GOBankingRates shows that retirees worried about stretching their budgets can live comfortably in several warm-weather cities across the country for around $2,000 a month, or less.

The report analyzed factors including population demographics, livability scores, and cost of living, focusing on locations where Social Security checks can cover housing, groceries, and leisure. While Florida dominates the list, options stretch from the Carolinas to Texas and beyond.

Standout cities

Tallahassee, Fla., emerged as one of the most affordable and lively retirement destinations. With a cost of living nearly 10% below the national average, homeowners spend about $1,248 per month, while renters pay under $1,000. The state capital balances outdoor recreation with a thriving arts and nightlife scene.

Further down the Gulf Coast, Fort Myers draws retirees with its pristine beaches, golf courses, and an easy transit system. Though its cost of living is slightly above the national average, Florida’s lack of state income tax makes it an attractive option.

El Paso, Texas, stood out for pure affordability. At just $712 a month for homeowners and $975 for renters, it’s one of the least expensive warm-weather cities in the study. With housing 44% below the national average, retirees here enjoy a rich food culture and year-round sunshine.

Other highlights include Greenville, S.C., with its Southern charm and below-average costs; Pensacola, Fla., offering white sand beaches on a budget; and Corpus Christi, Texas, where beachside living comes with a price tag nearly 17% below the national norm.

Livability beyond cost

While affordability is crucial, the study also measured lifestyle perks. Raleigh, N. C., for example, offers free attractions like botanical gardens and arts festivals, while Las Vegas appeals to retirees looking for entertainment, with the added benefit of healthcare costs that run 7% lower than the national average.

Providence, R.I., bucks the Southern trend, providing a mix of small-town charm and city amenities, with healthcare nearly 13% cheaper than the national average despite higher housing costs.

The study also noted that while some areas are budget-friendly, they may come with trade-offs such as extreme heat, humidity, or susceptibility to hurricanes. Retirees weighing these destinations should consider not just their wallets but also long-term health and safety.

Rising prices continue to erode the sense of security among America’s retirees, as revealed by the Schroders 2025 US Retirement Survey. With inflation persisting and the future impact of new tariffs uncertain, retirees are feeling mounting pressure on their savings. 

The study, which surveyed 1,500 investors nationwide – including 373 retired Americans – found that the top concern is the diminished value of retirement assets due to inflation, cited by an overwhelming 92% of respondents, up from 89% in 2024. Higher-than-expected costs for essentials like housing, food, and especially healthcare have become significant stressors for this population.

Uncertainty and the risk of outliving savings

The study found that 62% of retired Americans admit they do not know how long their money will last, suggesting widespread anxiety over longevity risk and financial planning. Just two in five retirees (40%) believe they have enough money saved for retirement, while nearly half (45%) say their expenses have exceeded initial expectations. 

In addition, 70% are concerned about the possibility of outliving their assets, and 71% express uncertainty about the best strategies to generate income or draw down retirement savings, both figures rising since last year.

Retirees now allocate roughly 15% of their total monthly income to healthcare-related expenses, yet more than half (58%) were surprised by how little Medicare covered. Financial stress has tangible effects: 36% of retirees now worry their financial struggles could impact their overall health, up from 33% in 2024. As stress intensifies, one-in-four say they’ve lost sleep over their financial situation, and over a quarter spend an hour or more each day worrying about money.

Need for advice

Despite these anxieties, 64% of retirees do not work with a professional financial advisor, and 44% lack a concrete plan for estimating expenses or developing an investment strategy. The study underscores the importance of proactive retirement planning, risk management, and access to personalized advice in today’s uncertain economic climate.

“Rising prices on essentials like housing, food, and healthcare have significantly diminished the purchasing power and financial security of retirees,” said Deb Boyden, head of U.S. Defined Contribution at Schroders. “The uncertainty that’s currently plaguing so many retirees is a poignant reminder of the value of proper planning, products, and personalized advice for a comfortable retirement.”

A major new study published in Nature Medicine reveals that the risk of developing Alzheimer’s disease may depend not only on genes but also on how those genes interact with the body’s metabolism and diet. One diet in particular, the Mediterranean diet, appears to significantly reduce the risk.

In a study published in the journal Nature Medicine, researchers found that people who inherit two copies of the APOE4 gene, a powerful genetic driver of Alzheimer’s, have a distinct biological profile that makes them especially vulnerable to dementia.

The study followed more than 5,700 adults – 4,215 women in the Nurses’ Health Study and 1,490 men in the Health Professionals Follow-Up Study – over several decades. By analyzing genetic data, blood metabolites, and dietary habits, scientists were able to map how different biological pathways contribute to dementia risk.

Metabolic fingerprints of dementia

The team identified 57 metabolites, molecules produced when the body processes food and energy, that were linked to dementia risk in ways that varied by genetics. For example, cholesteryl esters and sphingomyelins, both types of fats, were most strongly tied to higher dementia risk in people with two APOE4 copies. At the same time, certain glycerides seemed to protect only this group.

In people carrying other risk-related genetic variants, such as in the APP gene, different metabolites played a role. One example was dimethylguanidino-valeric acid, which was more strongly connected to dementia risk in those carriers.

The research also highlighted the Mediterranean diet, rich in fruits, vegetables, fish, nuts, and olive oil, as a powerful tool against dementia. For people with the genes, adherence to this diet had a particularly strong effect in reducing harmful metabolites and boosting protective ones. Nearly 40% of the diet’s benefit in reducing dementia risk in these individuals could be explained by its influence on metabolites, the study’s authors wrote. This suggests that targeted dietary strategies might help offset even the strongest genetic risks for Alzheimer’s disease.

Health experts at UC Davis Health point to other benefits of the Mediterranean diet, including lower risk of heart disease, stroke, diabetes, certain cancers, improved longevity, and better overall metabolic health.

The diet lowers the risk of developing type 2 diabetes and supports metabolic health via high fiber intake, slow-digesting carbohydrates, and emphasis on healthy fats such as olive oil and fatty fish.

Decades ago, if you worked for an employer with a retirement plan, it was most likely a defined pension. In retirement, it paid a guaranteed, lifetime income based on your earnings and the time spent on the job.

In the 1990s, employers began transitioning to the 401(k) account, a self-directed investment plan. The amount of money in the account at retirement depended on several factors, including how well you managed your investments.

While some people like to manage their own retirement savings, there’s growing evidence that today’s workers miss the pension plans from the past. A recent survey from Nuveen, the investment manager of TIAA, and the TIAA Institute reveals that workers are increasingly demanding guaranteed income options in their retirement savings plans. 

Among the more than 2,000 401(k) participants surveyed, 93% said it is important for their retirement plans to provide a way to convert savings into guaranteed monthly income that lasts a lifetime. If not a return to pensions, the majority expressed interest in some kind of hybrid.

The research found that 87% of workers think employers have a responsibility to help ensure employees achieve retirement income security, a dramatic shift from just three years ago, when fewer than six in ten expressed the same view.

A return to annuities?

The survey highlighted near-universal interest in fixed annuities, with about 90% of participants agreeing that these products would bring meaningful value to 401(k) plans. Specifically, participants said they would:

• Welcome the inclusion of a fixed annuity in their plan,
• Consider saving with one if offered,
• Use it to secure steady monthly retirement income, and
• Support target-date investments that embed an annuity component.

Despite this enthusiasm, most 401(k) plans still lack a built-in mechanism to provide guaranteed lifetime income. The 401 (k) system currently has 79 million active participants and $6.8 trillion in assets. The survey suggests retirement savers may be looking for something more.

Nuveen, which sells annuities, believes most retirement plans could include an annuity, promoting it as a “low-cost way to fill the retirement income design gap.”

Before making any decision about your retirement accounts, it’s wise to consult with a trusted and objective financial adviser.

U.S. pensions should remain strong through the remainder of 2025, according to a new report from S&P Global Ratings. You can thank the current stock market rally.

Friday put an exclamation point on the rise in stock prices. The Dow Jones Industrial Average gained 846 points, the S&P 500 gained 96, and the Nasdaq rose by 396 points. 

The first half of the year was equally strong. Because of market returns, many analysts expect pension returns will equal as much as 12% for the fiscal year that ended at the end of June.

Friday’s rally suggests that trend could continue for a while. The surge in stock prices was the result of a keynote speech at the Jackson Hole Economic Symposium. Federal Reserve Chair Jerome Powell signaled that interest rate cuts could be on the table as early as September. He noted that a shifting balance of risks, including a weaker job market, might prompt adjustments to monetary policy.

That was music to investors’ ears. Investors saw this as a dovish pivot, boosting expectations for lower borrowing costs, a positive for equities. Following Powell’s remarks, Treasury yields dropped sharply, helping drive the rally.

The S&P Global Ratings report predicts this year’s strong stock market performance simply adds to the estimated pension returns of 16% to 17% in fiscal 2024. That’s well above the 7% minimum most fund managers want to see in order to feel comfortable.

In the end, stock market performance has a direct and indirect impact on pensions, depending on whether you’re looking at defined contribution plans like 401(k)s and IRAs or defined benefit plans – traditional pensions promised by employers. 

Here’s a breakdown:

1. Defined Contribution Plans (401(k), IRA, etc.)

These retirement accounts are typically invested in stocks, bonds, and mutual funds.

• When the stock market rises: Account balances grow, since equities typically make up a large share of investments. This directly increases retirement savings.
• When the market falls: Account balances shrink, which can reduce expected retirement income unless the losses are recovered before withdrawals.
• Long-term effect: Over decades, stock markets historically trend upward, so downturns usually hurt most if they happen just before or during retirement, when there’s less time to recover.

2. Defined Benefit Plans (Traditional Pensions)

These promise a set benefit in retirement, but the health of the pension fund depends on investment returns.

• Positive market performance: Pension funds often invest heavily in stocks. Strong returns improve funding levels, making it easier for the plan to meet future obligations.
• Poor market performance: Weak returns increase funding gaps, meaning employers (or governments, in public pensions) may need to contribute more money to keep the plan solvent.
• Risk of underfunding: If markets underperform for long periods, some pensions may cut cost-of-living adjustments, reduce future accruals, or—rarely—default if underfunding becomes severe.

3. Broader Economic Linkages

• Interest rates matter too: Pension liabilities are valued based on long-term interest rates. Falling rates increase liabilities, meaning pensions need even better market returns to stay funded.
• Corporate pensions: Companies with underfunded plans may see weaker balance sheets, which can affect stock prices in turn.
• Public pensions: State and municipal pensions are especially sensitive; poor stock performance can lead to tax increases, reduced benefits, or both.

4. Real-World Example

• During the 2008 financial crisis, many pension funds saw double-digit losses. Defined contribution savers close to retirement often had to delay retiring.
• Public pensions became deeply underfunded, and some (like in Illinois, New Jersey, and Detroit’s municipal system) faced long-term solvency issues.
• Conversely, the long bull market from 2009–2021 dramatically improved pension fund health and boosted individual retirement account balances.