{"id":287486,"date":"2026-05-25T18:00:02","date_gmt":"2026-05-25T22:00:02","guid":{"rendered":"https:\/\/futbolete.com\/us\/?p=287486"},"modified":"2026-05-25T08:14:54","modified_gmt":"2026-05-25T12:14:54","slug":"investment-retirement-4-percent-return","status":"publish","type":"post","link":"https:\/\/futbolete.com\/us\/investment-retirement-4-percent-return\/","title":{"rendered":"How Social Security retirees can get 4% returns before the 2027 COLA adjustment"},"content":{"rendered":"

The 2027 cost-of-living adjustment, or COLA,<\/strong> increase isn\u2019t coming until October 2026, when Social Security<\/strong> finally announces it. But looking at the inflation numbers right now, we can already see where things are heading.<\/p>\n

Back on February 10th, The Senior Citizens League put out their analysis. They said early projections were sitting between 2% and 3%,<\/strong> but after the spikes in March and April, they bumped it up to 3.9%.<\/strong><\/p>\n

That 3.9% works out to about $80 more per month on the average check of $2,070. So instead of $2,070, it\u2019d be closer to $2,150. Not bad, but it\u2019s still nine months away.<\/p>\n

Retirement Savings: The Safer Yield You’re Missing<\/h2>\n

Here\u2019s what a lot of people are missing: safe accounts have been paying more than that 3.9% since last November<\/strong>. Right now you can find high-yield savings accounts offering between 4% and 5% APY. They\u2019re FDIC insured up to the usual $250,000.<\/strong><\/p>\n

Susan Roberts, an analyst at the San Francisco Fed, mentioned in her January report that rates should hold steady through the first half of the year. That gives people some breathing room.<\/p>\n

As of February, the best rates experts pointed at were Varo at 4.80%, Vio Bank at 4.65%, CIT at 4.50%, and Bread Savings at 4.40%. All beating the expected COLA.<\/strong><\/p>\n

You can also get around 4.75% on some 12-month CDs, but remember the catch \u2014 if you pull the money early, you\u2019ll lose three to six months of interest. That\u2019s not ideal if you\u2019re living mostly on Social Security.<\/p>\n\n\n\n\n\n\n\n\n
Bank<\/th>\nAPY Rate<\/th>\n<\/tr>\n<\/thead>\n
Varo<\/td>\n4.80%<\/td>\n<\/tr>\n
Vio Bank<\/td>\n4.65%<\/td>\n<\/tr>\n
CIT Bank<\/td>\n4.50%<\/td>\n<\/tr>\n
Bread Savings<\/td>\n4.40%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

The Ladder That Unlocks More<\/h2>\n

What I\u2019ve been telling my clients for years is to use a CD ladder<\/strong>. Simple example: take $10,000 and split it into four pieces of $2,500. Put them in a 3-month, 6-month, 9-month, and 12-month CD. When the shortest one matures, roll it into a new 12-month. Do the same as the others come due. After a year, you\u2019ve got money freeing up every three months without locking everything away for too long.<\/p>\n

Treasury Bills are yielding between 3.6% and 4.5% right now<\/strong>, depending on the term. And the I Bonds issued in February are paying 4.26%, tied directly to inflation. You can buy up to $10,000 per person per year<\/strong>.<\/p>\n

A guy from the Treasury said during a hearing that I Bonds are still one of the best ways for retirees to stay ahead of these inflation jumps.<\/p>\n

If you need the money to be available right away, money market funds are paying around 3.5% to 4.2%. Just keep in mind they\u2019re not FDIC insured, even though they\u2019ve been very stable.<\/p>\n

Who should do what:<\/h2>\n