Social Security Update
The Social Security Administration has announced a 3.6% cost of living increase in 2027 monthly benefits. The cost of living increase applies automatically. The Social Security wage base on which those taxes apply (6.2% of wages for employees and 12.4% for self-employed persons) will increase to $192,300 in 2027.
Change in Health Care Insurance Premiums
The average annual health insurance premiums for employer-sponsored plans grew by over 5% in 2026 and employees are paying more of the overall cost according to the Kaiser Family Foundation’s 2026 Employer Health Benefits Annual Survey. Since 2021, the overall increase has been 28% (see chart below). According to the 2026 survey, among large firms offering health benefits, 44% increased the share of premiums paid by workers, and 21% increased deductibles or other cost sharing for most services. Mercer’s National Survey of Employer Sponsored Health Plans projects that total health benefit costs per employee will increase to be over 8% for 2027, the highest annual increase since 2003. According to Mercer, AI-enabled software that assists physicians with insurance claims could account for as much as one percentage point of the projected increase in health benefit costs. As health insurance costs continue to rise, high-deductible health plans that allow eligible individuals to make tax-advantaged contributions to a Health Savings Account (HSA) may be an attractive alternative to PPO plans with lower deductibles and higher premiums.
Medicare Madness Webinar
Medicare Open Enrollment runs from October 15 through December 7, and the choices you make now take effect January 1, 2027. Do you know what’s changing for next year and what to review before the window closes?
At Milestone Financial Planning, we want to help you understand what’s changing, what to look for, and what to consider when reviewing your coverage. This session is open to everyone and especially relevant for those already on Medicare. It will be live on November 6 at 12:00 PM ET, and we will post the recording to our website after it’s over. If you’re 55 or older, it’s also an opportunity to get a head start on understanding your options before you enroll. Join us for a conversation with Marcia Mantell, RMA®, NSSA®, EPA®, as she walks through this year’s Open Enrollment season.
Webinar Registration:
Taxes and financial planning are complex, but you don’t have to navigate them alone. A financial advisor can help you stay informed about tax law changes, optimize your savings and investments, and avoid costly mistakes. If you need tailored guidance, our team is here to help. Talk to an advisor or call (603) 589-8010 to integrate tax planning into your comprehensive financial strategy.
Disclaimer:
The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. The views expressed in this commentary are subject to change based on market and other conditions. These documents may contain certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.
All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
Milestone Financial Planning, LLC (“Milestone”) is a fee-only financial planning firm and registered investment advisor headquartered in Bedford, NH. Registration does not imply a certain level of skill or training. Milestone works with clients on an ongoing, long-term basis, providing financial planning, tax planning, retirement planning, and investment management services. Fees are based on assets under management and may include a financial planning fee. Milestone receives no commissions or referral fees and, as a fiduciary, is required to act in clients’ best interests. Advisory services are offered only where Milestone and its representatives are properly licensed or exempt from licensure. More information, including fees and principal risks, is available in Milestone’s Form ADV Part 2A. For help with your investments or financial planning, contact one of our fee-only advisors.
