Your Money This Week: What Just Happened and What to Do Next

From adjustments to Social Security benefits to changes in the federal student aid application, here is some news that could impact your wallet this week, and how you can prepare your finances for the week ahead.

The Social Security Administration adjusts benefits based on inflation rates each year. For 2026, the Senior Citizens League estimates that the cost-of-living adjustment will be 2.7%.

Yet, costs for older Americans have been growing faster than benefit increases as medical costs have skyrocketed. The average 65-year-old retiring in 2025 can expect to spend an average of $172,500 on health expenses, with almost half going toward Medicare Part B and Part D premiums.

The cost of standard Medicare Part B premiums is expected to increase by 11.6% next year, and the estimated COLA for 2026 will not be enough to cover it.

With health care costs continuing to increase and the future of Social Security uncertain, savings for retirement are essential.

Experts say younger generations should plan for retirement as if Social Security benefits won't be an option. Americans closer to retirement are recommended to max out their 401(k) and IRA contributions to prepare for Social Security's potential 2034 depletion date.

The Free Application for Federal Student Aid will be available to the public on Oct. 1, 2025.

The 2026-27 academic year application included some changes from the "One Big, Beautiful Bill" that could impact the amount of federal student aid some families will receive.

Families that own small businesses, family farms, and family-owned commercial businesses can once again exclude these assets when calculating their eligibility for aid. This will likely increase the amount of aid these families will receive.

However, some applicants could receive smaller Pell Grants this year. Families with high incomes and assets will be ineligible for the federal grant program, and families' foreign income now must be reported as part of their adjusted gross income when applying for a Pell Grant.

Families should prepare for these changes when they fill out the FAFSA in October. Higher education experts say completing the application as soon as possible is best because some federal student aid is awarded on a first-come, first-served basis.

Those who could receive less in Pell Grants this year will have to prepare to pay more once the 2026-27 academic year rolls around. Families who will have to pay more out of pocket could consider payment plans that are often offered through colleges.