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Not all retirees owe federal income taxes on their Social Security benefits, but around 40% do, according to the Social Security Administration. Whether your benefits are federally taxable depends on your federal tax-filing status and what the government calls your combined income.
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After more than a week's delay, last Friday we learned the final determination of the 2026 cost-of-living adjustment (COLA) to federal retirement annuities and Social Security benefits, which will be 2.8% for Civil Service Retirement System (CSRS) annuities and Social Security benefits and 2% for Federal Employee Retirement System (FERS) annuities. COLAs provide a critical boost to the value of federal retirement benefits, ensuring they keep pace with rising prices. Yet, with inflation above 2%,
After more than a week's delay, last Friday we learned the final determination of the 2026 cost-of-living adjustment (COLA) to federal retirement annuities and Social Security benefits, which will be 2.8% for Civil Service Retirement System (CSRS) annuities and Social Security benefits and 2% for Federal Employee Retirement System (FERS) annuities. COLAs provide a critical boost to the value of federal retirement benefits, ensuring they keep pace with rising prices. Yet, with inflation above 2%,
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