Financial Insights — Thursday, May 21, 2026

Waiting to retire could be worth thousands of dollars

An analysis of current Social Security claiming rules shows how delaying benefits beyond full retirement age boosts monthly checks by up to 8% per year until age 70, and explains tax penalties on tapping retirement accounts too early.

Source: Govexec · May 19, 2026

The math on delaying Social Security past full retirement age gets sharper the longer you live—8% annual increases compound into a materially different monthly check by 70. For someone in their mid-50s still working, this timing question sits at the center of retirement planning. If you're thinking about retiring at 65 or 67, the gap between claiming then versus waiting until 70 reshapes how long your money needs to last and what you can safely spend. Worth running the numbers on what your specific breakeven age might be, factoring in your health outlook and other income sources already in place.

• •Delaying Social Security past full retirement age increases benefits by up to 8% per year, credited monthly, until age 70.
• •Cost-of-living adjustments (COLAs) start accruing at 62 even if you delay claiming, which is important for long-term benefit growth.
• •Withdrawals from retirement plans like the Thrift Savings Plan (TSP) before age 59½ can trigger a 10% early-withdrawal penalty on top of income tax.

Will Social Security Run Out? Funding, Shortfall, & Timeline

Britannica explains current Social Security solvency projections, noting that without Congressional action the trust fund could be depleted around 2033, at which point benefits might be cut to roughly 79% of scheduled amounts.

Source: Britannica · May 15, 2026

If Congress doesn't act, the Social Security trust fund runs dry around 2033—which is right in the retirement window for people in their mid-career years today. Someone retiring in the early 2030s could face a meaningful shift in their expected income stream. Even after the trust fund depletes, ongoing payroll taxes would still cover roughly 79% of scheduled benefits, but that gap matters when you're budgeting fixed income for decades ahead. Worth checking with a financial advisor about how a potential 21% reduction in Social Security might reshape your retirement timeline, withdrawal strategy, or savings targets over the next 6–15 years.

• •Trustees project the Social Security trust fund surplus will be exhausted around 2033 if no policy changes are enacted.
• •Even after depletion, ongoing payroll tax revenue is projected to cover about 79% of promised benefits, not zero.
• •Policymakers are actively debating potential fixes, such as tax increases or benefit formula changes, to close the gap and avoid across-the-board cuts.

Idaho Workplace Savings Program would help workers save for a more secure financial future

Pew highlights how state-run automatic workplace savings programs—now adopted or under consideration in many states—aim to expand access to retirement savings for workers whose employers don’t offer 401(k)-type plans.

Source: Pew · May 14, 2026

If your employer has never offered a 401(k), seventeen states have now made it possible to build retirement savings automatically—without waiting for a company plan. For someone ten years from retirement without access to workplace retirement accounts, these state-run IRA programs could help fill a meaningful gap before claiming Social Security becomes an option. Automatic payroll deductions compound quietly over a decade. Worth checking whether your state has passed one of these programs and whether you're currently enrolled—particularly as a catch-up opportunity before your peak earning years end.

• •Seventeen states have already passed laws creating automated workplace savings programs aimed at workers without employer plans.
• •These programs typically use automatic payroll deductions into IRAs, helping workers accumulate retirement savings even without a 401(k).
• •States are using these programs to close retirement savings gaps, which is particularly important as Social Security faces long-term funding challenges.

CMS ACCESS Model Aims to Expand Technology-Supported Chronic Care in Original Medicare

CMS’s ACCESS (Advancing Chronic Care with Effective, Scalable Solutions) Model will test new payment approaches in Original Medicare to broaden use of technology-supported care for preventing and managing chronic disease, with the first performance period starting in 2026.

Source: Cms · May 15, 2026

The way Medicare pays for chronic disease care is about to shift toward rewarding outcomes and remote monitoring—which could reshape both your healthcare experience and your retirement budget. If you're 10–15 years from retirement, this matters because managing conditions like heart disease or diabetes through technology-supported care could reduce hospitalizations and out-of-pocket costs during your early retirement years, when healthcare expenses often spike. Worth checking with your current providers whether they're participating in the ACCESS Model or planning to adopt these digital care tools—it may influence both your quality of care and what you'll actually spend on health in retirement.

• •The ACCESS Model is designed to align Medicare payments with outcomes, encouraging providers to use digital tools and remote care to manage chronic conditions.
• •It focuses on prevention and better management of chronic diseases that are especially common in older adults, such as heart disease and diabetes.
• •If successful, elements of this model could later be adopted more broadly across Medicare, potentially expanding access to tech-enabled care nationwide.

Key Facts on Health Coverage of Immigrants

KFF reviews how immigrants access health coverage in the U.S., including Medicare, Medicaid, and Marketplace plans, and describes recent state and federal policy changes that are expanding eligibility for some older adults.

Source: Kff · May 14, 2026

If you're planning to retire before Medicare eligibility at 65, your health coverage options and costs could shift unexpectedly depending on where you live and your immigration status. For someone retiring at 62 or 63, the gap years before Medicare matter enormously—both for access and affordability. State-level policy changes are now expanding coverage for low-income older adults regardless of immigration status, which could meaningfully alter healthcare expenses during that critical pre-Medicare window. Worth checking whether your state has expanded Medicaid or state-funded coverage options, especially if healthcare costs are factoring into your retirement timing decision.

• •The brief explains which categories of immigrants can qualify for Medicare and other coverage, and under what conditions.
• •It notes that some states have expanded state-funded coverage for low-income older adults regardless of immigration status, filling gaps for those ineligible for federal programs.
• •Coverage options and eligibility rules are evolving, which can affect access to preventive care, chronic disease management, and financial protection from medical bills.

United States Fed Funds Interest Rate Holds at 3.75%, With Markets Watching for Next Move

The federal funds rate is currently 3.75%, and market models expect it to stay around this level through the current quarter, signaling a continued environment of relatively elevated borrowing costs compared with the pre-2022 era.

Source: Tradingeconomics · May 20, 2026

The 3.75% Fed funds rate creates a rare window: safe, liquid savings accounts and Treasuries now offer yields that actually compete with long-term stock returns—something that didn't exist for most of the 2010s. For someone in their mid-50s with a decade to retirement, this matters because a meaningful portion of late-career contributions can now sit in CDs or high-yield savings without feeling like a drag on growth. That stability can reshape how aggressively you need to position the rest of your portfolio. Worth checking whether your current cash allocation is taking advantage of these relatively attractive yields, or if it's still parked in accounts paying near-zero rates.

• •The benchmark U.S. interest rate is 3.75%, well above the near‑zero levels that prevailed for much of the 2010s.
• •Trading Economics models suggest rates are likely to remain around 3.75% in the near term rather than rapidly returning to ultra‑low levels.
• •A sustained 3–4% Fed funds rate typically supports relatively attractive yields on CDs, Treasuries, and high‑yield savings compared with the previous decade.