The Latest Personal Finance News for October 2025

Social Security Recipients Get a 2026 COLA Adjustment

The Social Security Administration (SSA) announced a 2.8% cost of living adjustment (COLA) for 2026, resulting in an average increase of $56 per month. This adjustment is slightly higher than the 2.5% increase in 2025, but it's below the 10-year average of 3.1%.

The increase will affect payments for 75 million recipients of Social Security benefits and Supplemental Security Income.

Why It Matters

The SSA determines cost of living increases based on the consumer price index for urban wage workers and clerical workers. However, according to a survey by AARP, 77% of Social Security recipients say that the adjustment isn't enough to keep up with rising prices.

If your Social Security benefits aren't keeping pace with inflation, start by reviewing your expenses to determine where you can trim the fat or delay significant costs. It may also be necessary to supplement your retirement income through part-time work, downsizing your home or adjusting your retirement distributions to minimize your tax bill.

What You Can Do

• Read about the average Social Security check.
• Learn about when you can collect Social Security.
• Look into ways to increase your future Social Security benefits.
• Find out how much Social Security you'll get in retirement.

The 2026 Tax Brackets Are Official

The IRS has announced inflation adjustments for income tax brackets and the standard deduction for the 2026 tax year. Taxpayers in the bottom two tax brackets get a 4% inflation adjustment, while those in higher brackets get an increase of 2.3%.

Meanwhile, the standard deduction rose to $32,200 for married couples filing jointly, $24,150 for heads of household and $16,100 for single and married couples filing separately. That's a 7.3% increase from the previous year.

Why It Matters

The standard deduction is an amount you can subtract from your taxable income unless you qualify for higher itemized deductions. Tax brackets, on the other hand, dictate how much tax you owe on portions of your taxable income, with each bracket assessing a higher marginal tax rate.

These adjustments won't affect your 2025 tax return, but they could result in a lower tax bill on your 2026 return, especially if your income doesn't change by much.

What You Can Do

• Learn about the difference between standard and itemized deductions.
• Understand how tax brackets work.
• Know the difference between marginal and effective tax rates.
• Read up on tips for increasing your tax refund.

Inflation Continues Its Slow Climb

The annual inflation rate increased to 3% in September, according to the Bureau of Labor Statistics' consumer price index (CPI). That's the highest point since January of this year, after which the annual CPI reached as low as 2.3% in April.

While returning to the 3% mark is concerning, it's below the 3.1% clip that economists expected. Some of the main drivers include energy services, which rose by 6.4% year over year and used cars and trucks, with prices increasing by 5.1%.

Why It Matters

Higher inflation means families are paying more for everyday items. Experts say that there are still only limited impacts from the Trump administration's tariffs on goods from other countries, meaning that further inflation increases are on the horizon.

However, they anticipate that the trade policy will be more of a one-off influence on prices rather than a persistent driver of inflation.

What You Can Do

• Read up on how inflation works.
• Research ways to fight inflation and save money.
• Understand how inflation impacts your credit card debt.
• Learn about how inflation affects mortgage rates.

Mortgage Rates Hit a One-Year Low

Mortgage rates have dropped to their lowest point in more than a year, according to Freddie Mac's weekly survey. The 30-year fixed-rate mortgage averaged 6.19% as of October 23, the lowest point since early October 2024.

Why It Matters

The drop in mortgage rates could offer a window of opportunity for homebuyers and people looking to refinance. Even a small decrease in rates can lead to big savings over the life of a 30-year loan—potentially thousands of dollars less in interest payments.

Some experts say that we could see rates below 6% in the next few months—territory that borrowers haven't been in since September 2022. Unfortunately, mortgage rate forecasts are a constantly moving target, particularly with so much economic uncertainty surrounding trade policy, geopolitical tensions, a tight labor market and a government shutdown.

So, if you're thinking about buying a home or refinancing your existing mortgage loan, it's crucial that you pay attention to the latest trends to decide when to pull the trigger.

What You Can Do

• Stay up to date on current mortgage rates.
• Understand how rising interest rates increase mortgage costs.
• Learn how to get a lower mortgage rate.

Compare mortgage rates

Check today’s rates to find the best loan offers. Staying updated on current rates helps you secure a competitive mortgage and save more over time.

Good Credit Can Contribute to a Healthy Financial Plan

While there are aspects of your financial situation that are outside of your control, building and maintaining a good credit score can help you weather challenges and save money in the long run.

With Experian's free credit monitoring service, you'll get access to your FICO^® Score^Θ and your Experian credit report. With this information in hand, you can gauge your credit health and target areas of your credit profile that you can improve over time. And with real-time alerts whenever your report is updated, you can spot potential issues and fraud and address them quickly.