Retirement Insights

News and information for current and future retirees.

2026 Housing Market Trends to know if you're looking to buy

Article written by Terry Lane, Investopedia.

Home sales remained near historic lows in 2025, as high housing costs and elevated mortgage rates continued to keep buyers on the sidelines. But housing affordability is expected to improve in 2026, if only slightly.

Mortgage Rates Will Drop, But Not as Much as You Think

Mortgage rates peaked at more than 7% in early 2025 and then eased in the second half of the year to around 6.2%. That offered some relief from the high borrowing costs that have helped freeze the housing market.

Why This Matters to You

Buying a home is often the biggest financial decision people make, and conditions like mortgage rates, prices, and local affordability can shape monthly budgets and household wealth. Understanding how the market may evolve in 2026 helps prospective buyers decide whether waiting, relocating, or choosing different financing could meaningfully improve affordability.

But most experts don’t expect mortgage rates to fall much further. The Mortgage Bankers Association projects rates will remain between 6% and 6.5% in the coming year.2 Real estate firm Redfin projects an average mortgage rate of 6.3% in 2026, while the National Association of Realtors also saw mortgage rates hanging at “around 6%.”

“As we go into next year, the mortgage rate will be a little bit better,” said National Association of Realtors Chief Economist Lawrence Yun. “It will be a modest decline that will improve affordability.”

Mortgage rates aren’t expected to move significantly, even though the Federal Reserve is likely to continue lowering short-term interest rates in the coming year.

The Fed has reduced interest rates by a total of 1.75 percentage points since it first started cutting in September 2024. But mortgage rates haven’t come down in kind. In fact, rates went up after the Fed first began cutting, and are only now just starting to return to September 2024 levels. Economists believe that additional Fed rate cuts are unlikely to loosen mortgage rates further, which closely track the long-term borrowing costs reflected in the 10-year Treasury yield.

“The risk of growing budget deficits and elevated inflation expectations will keep longer-term rates from falling further, even as the Fed cuts short-term rates,” the MBA wrote in its 2026 outlook. “MBA expects there will be periods where rates drop, which will provide moments of refinance activity, similar to what has occurred several times in 2025.”

There Are Deals, But They May Not Be Local

Housing prices are high, but the high-cost housing trends aren’t spread evenly across the U.S. Some areas are experiencing intense strains on affordability, while prices in other areas haven’t risen as fast.

Cities on the California coast and in the heavily populated Northeast remain among the highest-cost areas of the country to live, according to Oxford Economics.5 But in some areas in the South and Midwest, housing prices are more reasonable, even if they are growing at a faster rate.

Oxford Economics pointed to cities like Cleveland, Cincinnati, Detroit, St. Louis, New Orleans, Louisville, Ky., Memphis, Tenn, Tucson, Ariz. and Oklahoma City, Okla. as cities that still offer more-affordable housing options.

“Although most of these metros have lower house prices than the U.S. average, more than half have seen stronger house price appreciation than the [rest of the] US over the last five years. Still, what differentiates these more affordable metros is the differences in property taxes and insurance,” wrote Oxford Economics.

An Adjustable-Rate Mortgage Might Be Right for You

With mortgage rates hovering around 6%, an increasing number of borrowers have turned to adjustable-rate mortgages, commonly known as ARM loans. These loans can offer a lower interest rate for a set period, often five years, before periodically resetting based on a benchmark. In September, approximately 10% of home borrowers opted for an ARM loan, compared to the historical average of around 6% of mortgage loans.

It May Be Better to Buy A New Home

While high prices have depressed home sales across the board, sales of newly constructed homes are outpacing those of existing homes, which remain at historically low levels.

Generally, new homes have been more expensive than existing homes. However, more homebuilders are offering incentives, making new home prices more competitive with those of existing homes. In August, the most recent month for which data is available, new homes sold for an average of $413,500, lower than the average price of $422,600 for existing homes.

Builder incentives, which can include mortgage rate buy-downs, reduced closing costs, and credits for housing design changes, have helped push new home sales higher. The limited inventory of existing homes is also making new home prices competitive.

“Buyers are seeing a lot of value in new homes and taking advantage of the unusually high glut of new homes for sale on the market,” said Heather Long, chief economist at Navy Federal Credit Union.

SOURCES AND ARTICLE AVAILABLE AT INVESTOPEDIA

How to Use Your Health Savings Account in Retirement

Article written by Donna Levalley, Kiplinger

By strategically saving and investing your HSA funds during your working years, you may unlock the full potential of these accounts to cover health care costs.

After age 65, a Health Savings Account (HSA) may also serve as a supplemental income source. At that point, the 20% penalty for non-qualified medical withdrawals disappears, leaving the funds subject only to standard income tax — similar to a traditional IRA or 401(k).

The triple-tax advantage

The core strength of the HSA lies in its three layers of tax benefits:

Tax-deductible contributions: Money you contribute goes in tax-free or is tax-deductible if you contribute post-tax
Tax-free growth: Your investments and interest grow tax-free
Tax-free withdrawals: Withdrawals are tax-free if used for qualified medical expenses at any age

When you reach retirement, the third benefit becomes even more versatile.

What Can You Spend HSA Funds On in Retirement?

Health care is often the largest expense for retirees. Your HSA is designed to meet this need. The ability to reimburse yourself for Medicare premiums, coinsurance, co-payments and deductibles can put a significant sum back into your pocket.

At any age, money withdrawn for qualified medical expenses is completely tax-free and penalty-free. In retirement, this can include:

Covering long-term care costs

Long-term care expenses often go unplanned, although 56% of people will need long-term care services within their lifetime. The Life Insurance Marketing and Research Association (LIMRA) estimates that only 3% of Americans over 50 have any long-term coverage (LTC). As noted, you can use HSA funds to pay LTC insurance premiums for yourself or your spouse; a portion of that payment is tax-free as a qualified medical expense.

The amount you can withdraw annually that will be treated as qualified medical expenses depends on your age. It is equal to the IRS tax deductible limits for LTC insurance and is indexed for inflation annually.

Limits on HSA reimbursement for long-term care insurance premiums:

Age attained before close of year/2026 annual limit
40 or less $500
More than 40 but not more than 50 $930
More than 50 but not more than 60 $1,860
More than 60 but not more than 70 $4,960
More than 70 $6,200

Pay out-of-pocket now, reimburse yourself later

One strategy to stretch your HSA is to pay current medical expenses out-of-pocket with non-HSA funds and keep the receipts for reimbursement at a later date.

Because your HSA funds never expire, you can let the balance grow and invest tax-free for decades. Then, in retirement, you can reimburse yourself for those previous, qualified expenses — potentially pulling out a large, tax-free lump sum that can be used for any purpose. Be sure to keep meticulous records of all receipts.

Remember that any expenses incurred before you established your HSA aren’t considered qualified medical expenses and aren’t eligible for reimbursement.

An important difference between HSAs and FSAs: Unlike FSA accounts, there is no time limit to request HSA reimbursements. You can pay for qualified medical expenses out of pocket and reimburse yourself days or even decades later. You might not need to submit receipts to your HSA provider to get reimbursed, but keep those receipts for tax purposes.

Important considerations for retirees

Stop contributing when enrolling in Medicare- A critical rule to remember: You cannot contribute to an HSA once you enroll in Medicare (Part A and/or Part B). And, because anyone receiving Social Security is automatically enrolled in Medicare Part A and Part B when they turn 65, it’s essential to plan your final contributions carefully. You should stop contributing to your HSA six months before your intended Medicare enrollment date to avoid potential tax penalties.
No required minimum distributions (RMDs)- Unlike traditional retirement accounts, 401(k)s, or traditional IRAs, an HSA is not subject to required minimum distributions (RMDs) at age 73. This allows your money to continue to grow tax-free for your entire life, making it an excellent asset for long-term health planning and estate purposes.
The spouse and beneficiary factor- If your spouse is your beneficiary, the HSA can simply transfer to them upon your death, and they will continue to enjoy the same tax advantages. If a non-spouse is named as the beneficiary, the account typically loses its HSA status and becomes taxable upon transfer.

ARTICLE AND SOURCES AVAILABLE AT KIPLINGER

Ways Retirement May Be Different in 2026

By Cameron Huddleston and Deirdre Shesgreen, AARP

How changes to Social Security, Medicare, 401(k) contributions and more might affect your finances.

Retirement may seem like the most stable period of your life, with no work demands, no kids to cart around and lots of free time. But this dynamic new chapter comes with its own twists and turns. Your lifestyle, expectations and finances continue to change. And in 2026, big shifts are coming, from Social Security payments and Medicare expenses to how you save and spend.

Even if retirement is still a few years away, these changes could affect how you prepare to leave the 9-to-5. Here are nine things affecting retirees’ financial well-being that will be different in the coming year.

1. Social Security gets COLA boost

Social Security recipients get a 2.8 percent benefit bump in January, when the annual cost-of-living adjustment (COLA) kicks in. The average monthly retirement payment is set to increase by an estimated $56, from $2,015 to $2,071, according to the Social Security Administration (SSA), and the average survivor benefit for a widowed spouse will rise by $52, from $1,867 to $1,919.

The 2026 COLA reflects changes in prices for a set of consumer goods and services from the third quarter of 2024 to the third quarter of 2025, as measured by a federal price index. Inflation ticked up over that time, resulting in a slightly higher increase compared with 2025’s 2.5 percent COLA.

People collecting retirement, family, survivor or Social Security Disability Insurance (SSDI) benefits will see the COLA boost in their January payments. Those receiving Supplemental Security Income (SSI) — a benefit for people with very limited income and assets who are 65 and older, blind or have a disability that is administered by the SSA — will get their first inflation-adjusted payment on Dec. 31.

The COLA’s impact on beneficiaries’ purchasing power will depend largely on inflation trends in 2026. If inflation cools, the 2.8 percent benefit increase could provide retirees with a modest financial cushion. But if prices continue to climb, the COLA may leave beneficiaries struggling to manage their expenses.

2. Medicare premiums up nearly 10%

One cost that will put a dent in the COLA: Medicare premiums. The base rate for Medicare Part B, which covers doctor visits and other outpatient care, is going up by 9.7 percent in 2026, from $185 to $202.90 a month.

Most Medicare enrollees’ premiums are deducted directly from their Social Security payments, so the Part B increase effectively reduces their COLA by $17.90 a month. Premiums are higher for what Medicare considers high earners. In 2026, those are beneficiaries with incomes above $109,000 for individual taxpayers and $218,000 for couples filing jointly.

The annual deductible for Part B is also rising, from $257 in 2025 to $283 in 2026.

People with Medicare Advantage (MA) coverage or Medicare Part D prescription drug plans may see varying costs, as these plans are provided by private insurers. According to Medicare estimates, the average monthly premium for an MA plan will decline by $2.40 a month, from $16.40 in 2025 to $14.00 in 2026.

The average premium for a stand-alone Part D prescription plan is projected to be $34.50 next year, a reduction of $3.81 from 2025. The cap on annual out-of-pocket costs for prescriptions under both Part D policies and drug coverage in MA plans will increase from $2,000 to $2,100.

3. Retirement plan contribution caps rise

The IRS sets annual limits on the amount you can put into an individual retirement account (IRA) or workplace retirement plan, with multiple tiers.

For IRAs, the standard contribution cap for the 2026 tax year is $7,500, up from $7,000 in 2025. The maximum catch-up contribution for savers age 50 and older is going up from $1,000 to $1,100, meaning older adults can sock away up to $8,600 in an IRA in 2026. (You can still make a contribution that counts for 2025 tax purposes, the deadline is April 15, 2026.)

If you have a job-based retirement account, such as a 401(k), 403(b) or Thrift Savings Plan, the 2026 contribution limit for workers age 49 and younger is $24,500, $1,000 more than the 2025 cap. For workplace plans, there are two catch-up levels:

Workers ages 50 to 59 and 64-plus have a catch-up cap of $8,000 in 2026 (up from $7,500 in 2025), for a maximum contribution of $32,500.
The so-called “super catch-up” limit for workers ages 60 to 63 is $11,250 (the same as in 2025), for a total contribution cap of $35,750.

4. Standard tax deduction going up

The IRS increases the standard deduction most years to account for inflation, and this year, Congress juiced it a bit more as part of the “One Big Beautiful Bill” (OBBB) enacted in July. That’s especially meaningful for Americans age 65 and over, who have a bigger standard deduction than younger taxpayers do.

Here are the regular standard deductions for 2025 tax returns (the ones you must file by April 15, 2026):

Married couple filing jointly: $31,500 (up from $29,200 in the 2024 tax year)
Single or married filing separately: $15,750 (up from $14,600)
Head of household: $23,625 (up from $21,900)

And here are the standard deductions for taxpayers age 65-plus:

Married filing jointly (if one or both spouses are 65-plus): $34,700 (up from $32,300 in 2024)
Single or married filing separately: $17,750 (up from $16,550)
Head of household: $25,625 (up from $23,850)

5. Many retirees get a new tax break

Along with the higher standard deduction, the OBBB included a brand-new tax break of up to $6,000 for people age 65 and older that could reduce or fully offset taxes on Social Security income for millions of Americans.

The provision, which AARP supported including in the OBBB, applies to people who are at least 65 at the end of 2025. Qualifying individual taxpayers with a modified adjusted gross income (MAGI) of up to $75,000, and spouses filing jointly with a combined MAGI of up to $150,000, can deduct up to $6,000 each from their taxable income.

The deduction is reduced at higher income levels, up to $175,000 for single filers and $250,000 for couples. Above those thresholds, you are not eligible. It is also temporary — under the OBBB, it is scheduled to sunset after the 2028 tax year.

6. Full retirement age changes

Under a law Congress passed in 1983, full retirement age (FRA) for Social Security, the age at which you become eligible to claim 100 percent of the retirement benefit calculated from your lifetime earnings, has been going up incrementally from 65 to 67, based on year of birth. That drawn-out change is nearly complete.

FRA will settle at 67 for people born in 1960 and after, but for those born in 1959, it’s 66 and 10 months. You’ll reach it in 2026 if you were born from March 2, 1959, through Jan. 1, 1960.

7. Social Security ‘earnings test’ adjusted

If you claim Social Security retirement benefits before reaching full retirement age and continue to work, your payments may be temporarily reduced, but only if your annual work income exceeds a certain cap. Here’s how this earnings test works in 2026:

If you will reach FRA in a future year, the 2026 earnings limit is $24,480 (up from $23,400 in 2025). Social Security withholds $1 in benefits for every $2 in earnings above the cap.
If you will reach FRA in 2026, the threshold is $65,160 (up from $62,160). The withholding in this case is less: $1 in benefits for every $3 in earnings above the limit.

Once you hit full retirement age, the earnings test goes away. You will receive the full monthly payment you’re eligible for, with no deduction for work income, and the SSA recalculates your benefit amount to make up for the past withholding.

8. Penalty-free withdrawals for long-term care insurance

Taking money out of a retirement savings plan typically carries a 10 percent penalty if you’re younger than 59½. Starting Dec. 29, 2025, there’s an exception for withdrawals made to pay for long-term care insurance.

Under a provision of the SECURE 2.0 Act, a 2022 federal law designed to promote retirement readiness, savers under 59½ can pull up to $2,500 per year from IRAs, 401(k)s and other retirement plans without penalty to cover premiums for a “high-quality” long-term care policy. (The withdrawals are still subject to regular income taxes.) Check with your insurance provider to see if your policy qualifies under the law.

9. New qualified charitable donations limits

The IRS allows people age 70½ and older to make a qualified charitable donation (QCD) directly from an IRA and exclude it from their taxable income. The ceiling for an eligible donation is increasing from $108,000 in the 2025 tax year to $111,000 in 2026.

Along with reducing your tax bill, such donations count toward the required minimum distributions (RMD) you must take from a traditional IRA starting at age 73. If you take your mandatory withdrawal in the form of a QCD, it’s tax-free, provided you make the donation directly from your IRA to the charity. You don’t have to itemize to claim a QCD, as you do if you’re taking 2025 charitable donations as regular tax deductions.

Cruise Lines Are Parading Out Amazing Deals. Here Are the Best Ones

Article written by Bailey Berg, AFAR

During the start of the year, cruise lines unveil impressive discounts, reduced flight fares, free upgrades, and enticing perks as they look to fill their ships for the coming year. We’ve rounded up some of the most exciting offers.

You’ve finally landed on the cruise you want to take, maybe it’s a winter expedition to Norway to see the northern lights or perhaps you’re keen on visiting Costa Rica on a classic sailing ship, but now the question is, when should you book? Is it better to secure reservations far in advance or do you stand a better chance of snagging a deal if you wait?

We polled travel advisors who specialize in cruises to better understand when the best time to book a cruise is. Here’s what they had to say.

When is the best time to book a cruise?

While there’s not necessarily a wrong time to book a cruise, there are time frames where travelers can benefit from discounts and promotions.

Beyond holiday periods such as Black Friday, Cyber Monday, and Labor Day when there may be some flash sales, January and February are particularly good times to book a cruise. That’s because the first two months of the year are considered “wave season” in the cruising industry. It’s a time when cruise lines are looking to base load their ships for the year.

“Wave season is when cruise lines announce incredible promotions in an effort to sell as much unsold space for the year as possible,” explains Jeremy Hall, a travel advisor at Cruise Vacations International.

Those promotions could include free stateroom upgrades, highly reduced cruise fares, discounts on deposits, free sailings for children, complimentary airfare, and discounted beverage packages, among other offers.

As of press time, here are some of the best cruise deals we’ve spotted for the 2026 wave season.

The best wave season cruise deals for 2026

Abercrombie & Kent: Abercrombie & Kent, a luxury tour operator that partners with luxury cruise companies like French line Ponant, is offering up to $2,500 off select sailings, including on 10-day Nile River sailings and 9-day expeditions in India’s Kerala backwaters.

AmaWaterways: River cruise line AmaWaterways is offering complimentary land packages on hundreds of sailings in 2026 and 2027 if booked by March 31, 2026. The packages, which range from two to four nights, are available in the departure or arrival port on select European and Colombian sailings.

Aurora Expeditions: Environmentally friendly expedition operator Aurora Expeditions is offering a slew of savings on sailings to the Arctic and Antarctic in 2026 and 2027—and providing savings of up to 35 percent off The savings are available on bookings made before March 31, 2026. Here’sour recent review of sailing with Aurora in the Arctic.

Azamara: Travelers can receive up to $1,000 in onboard credit per stateroom on new bookings made by March 31, 2026. Maybe consider an Alaska sailing—2026 marks Azamara’s return to the 49th state.

Crystal Cruises: Luxury line Crystal, which is owned by Abercrombie & Kent, is offering up to $5,000 in savings per room or suite on select 2026 sailings booked through March 31, 2026. Guests also receive up to $500 in onboard credit per stateroom.

Ecoventura: As the only Relais & Chateaux cruise line in the Galápagos, operating just three 20-passenger mega-yachts in one of the world’s most protected destinations, Ecoventura’s departures rarely go on sale. However, through January 31, 2026, the cruise company is offering savings of up to 25 percent off select future sailings.

Emerald Cruises: Savings on this accessible luxury river cruise line include 30 percent off staterooms, combinable with two-for-one fares on select Europe and Southeast Asia river cruise sailings.

Explora Journeys: On boutique cruise line Explora Journeys, passengers can save up to 30 percent on select trips to the Mediterranean, northern Europe, and the Caribbean when booked by January 28. Look for sailings aboard the excellent 922-passenger Explora I (we were among the first aboard this recently launched vessel, which aims to court noncruisers).

Havila Voyages: Havila Voyages, a Norwegian cruise line that celebrated its first carbon-neutral sailing last fall and has a northern lights guarantee on select departures, is offering savings of up to $650 on sailings through 2028. Offer ends March 15, 2026.

Holland America Line: Holland America Line is offering up to 30 percent off fares on more than 500 sailings, plus free balcony upgrades, reduced deposits, free kids fares, and onboard and shore excursion credits. Guests who book by January 31, 2026, can receive onboard credit of up to $250 per person, plus up to $200 in Alaska shore excursion credits per stateroom on eligible 2026 Alaska cruises.

Hurtigruten: From now until the end of February, bookings are up to 25 percent off on select voyages within Norway on this local cruise line that has been sailing coastal Norway for more than 130 years.

HX (formerly Hurtigruten Expeditions): For select bookings made by March 23, 2026, HX—the expedition arm of Hurtigruten—is offering discounts of up to $4,000 on select sailings through 2028. The all-inclusive sailings include destinations ranging from theGalápagos Islands to theArctic.

Seabourn: For both ocean and expedition voyages booked by February 17, guests sailing on Seabourn’s super-luxurious cruise ships can save up to 15 percent off their cruise fares and receive up to $1,000 in shipboard credit per stateroom. Maybe this is your sign to book Seabourn’s epic 39-day Australia circumnavigation itinerary.

Sea Cloud Cruises: For select cruises booked for 2026, you can score two-for-one rates with this unique line that operates a fleet of sailing ships throughout the world. Eyeing a 2027 sailing? They’re 30 percent off. What’s it like to take a sailing cruise? We recently reviewed the experience on a cruise to Costa Rica.

Silversea: Luxe line Silversea is offering savings of up to 40 percent off on its all-inclusive fares for bookings made through February 28.

Smithsonian Journeys: Smithsonian Journeys, in alliance with Ponant, a French luxury cruise brand, is offering $1,000 in shipboard credit on any new 2026 sailing booked by March 31, 2026. Use code SBC500SJ at check-out.

Viking: Viking is offering up to 35 percent off new bookings across its collection of river, ocean, and expedition offerings through January 31. The deal comes with free airfare and a $25 deposit. Select voyages include free airfare. Read our review of one of Viking’s newest destinations: coastal China.

Virgin Voyages: Through January 15, cruisers can get 80 percent off the second guest’s booking. They will also receive up to $400 per room off their bar tab, depending on the length of the voyage. Virgin Voyages—which launched its newest ship, the 2,770-passenger Resilient Lady in 2023—bills itself as the perfect cruise line for people who don’t like cruises. Here’s our take.

Windstar Cruises: Book a Windstar sailing by March 31, and you can a slew of additional perks, including complimentary all-inclusive upgrades (select beer, wine, and cocktails, Wi-Fi, and gratuities), a free night in a hotel (pre–cruise), transfer from the hotel to the ship, up to $1,000 in onboard credit (which can be used for shore excursions and adventures or spa services or premium alcohol aboard). Our suggestion? Sail the Mediterranean with Windstar this winter when there are fewer crowds and no extreme heat.

Will working with a travel advisor get me a better deal?

“There are so many ways to get a good deal on a cruise, and nobody knows better than an experienced travel advisor,” Hall says. “There are so many promotions, amenities, loyalty programs, and pricing structures these days—it makes finding the best deal a daunting task. Your travel advisor will know precisely how to narrow down the search field to find the right cruise and deal for you.”

Robichaud echoes that sentiment, saying that travel advisors can leverage relationships with cruise companies to get discounted rates or free add-ons. And Smith notes that agencies that book a lot of cruises often receive free upgrades for their clients as an incentive from cruise lines aiming to build up a loyal network of travel advisors who sell and book their cruises.

If you delay claiming from age 62 to age 70, your monthly benefit increases by about 77% — a boost worth considering for those in good health.

^{Source: Schwab}

Entertainment & Education

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This list consists of the top 7 retirement books of 2025.

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On the Bright Side

Updated Retirement Insights Disclosure: This document is for informational purposes only. All information is assumed to be correct but the accuracy has not been confirmed and therefore is not guaranteed to be correct. Information is obtained from third party sources that may or may not be verified. The information presented should not be used in making any investment decisions. It is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. All comments and discussion presented are purely based on opinion and assumptions, not fact. These assumptions may or may not be correct based on foreseen and unforeseen events. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

Investment Advisory Services offered through Trek Financial LLC, an investment adviser registered with the Securities Exchange Commission. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed, and past performance is no guarantee of future results. For specific tax advice on any strategy, consult with a qualified tax professional before implementing any strategy discussed herein.

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