Markus Andrews

Everyone from President Joe Biden to Cookie Monster is taking a stand against shrinkflation.
One legislative proposal aims to curb the practice of downsizing consumer products.
In the meantime, there are steps consumers can take to spot the phenomenon and reduce their grocery bills.

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Some grocery store products are providing less for your money. And everyone from President Joe Biden to Cookie Monster has noticed.
Blame shrinkflation. The term — which is increasingly used in conversation — refers to products becoming smaller in size, weight or quantity as their prices stay the same or even increase.

Biden took companies to task for shrinking sports drinks and ice cream cartons and providing fewer chips in snack bags, in a pre-Super Bowl video posted on social media.
At the State of the Union, he again took a stand against shrinkflation, complaining that Snickers bars have become smaller.
Mars, the company that makes Snickers, denies the allegation. “The size of Snickers singles and share bars in the U.S. hasn’t been reduced,” a spokesperson for the company said in a statement.

In a more lighthearted exchange, when Cookie Monster posted “Me hate shrinkflation!” on X earlier this month, the White House responded, “C is for consumers getting ripped off.”
“President Biden is calling on companies to put a stop to shrinkflation,” the White House said.

The president has called for a bill to be passed that would give the Federal Trade Commission the authority to put regulations into effect to curb shrinkflation. The proposal would also make it possible for the FTC and state attorneys general to engage in civil actions against companies that engage in the practice.

Where consumers may see shrinkflation

For now, it’s up to consumers to spot the changes companies may make to their products.
Certain products tend to be more susceptible to charges of shrinkflation, according to Bureau of Labor Statistics data cited in a recent Senate report.
Household paper products had the largest measured price increase change due to shrinkflation from January 2019 to October 2023, with a 10.3% increase.
Other categories that saw notable changes in that time frame include snacks, which increased by 9.8%; household-cleaning products, up 7.3%; coffee, 7.2%; candy and chewing gum and ice cream and related products, 7%.
Noticing the changes requires having a keen eye and diligently paying attention, according to Mara Weinraub, senior lifestyle editor of groceries at food website The Kitchn.
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It can be easier to track those changes if you typically buy your groceries online or if you belong to a grocery store’s loyalty program. Some families even track their grocery store shopping by hand, Weinraub said.
If you’re watching for changes, you’re more likely to spot when a bag of popcorn shrinks from 5 ounces to 4.5 ounces, she said.
Shrinkflation isn’t necessarily new. But there are reasons why consumers are paying more attention to it now, Weinraub said. Social media makes it easier to share experiences with downsized products. Meanwhile, companies are generally posting profits while engaging in this practice, she said.
“There’s a layer of deception that they feel like, ‘Oh, this is something that companies are trying to do under the radar without us noticing,'” Weinraub said.

Why critics say shrinkflation is the wrong focus

While shrinkflation is now under the political spotlight, not all experts agree the emphasis is correctly placed.
Inflation peaked at 40-year highs in 2022. While the rate of inflation has come down, it is still higher than the Federal Reserve’s target.
The Bureau of Labor Statistics tracks changes in the sizes of consumer products in order to accurately capture the changes in prices for goods and services in the consumer price index.
While consumers may notice shrinkflation at the grocery store, it has a very small impact on the overall inflation picture they face, the Bureau of Labor Statistics said in 2023 article.

Shrinkflation is rarer than politicians are depicting and not as influential on consumers’ lives, argues economist Veronique de Rugy, senior research fellow at the Mercatus Center at George Mason University.
“Ultimately, consumers’ lives are harder because of inflation,” de Rugy said.
Notably, the categories most affected, such as snack products, are areas where consumers may refrain from purchases or substitute other goods, she said.
Most economists are not paying close attention to shrinkflation, contending its effects are eventually absorbed in inflation data.
But “I understand how with the average person it would frustrate and annoy them,” said David Doyle, head of economics at Macquarie.

How to be a smarter shopper at the grocery store

Customers shop at a Costco store on August 31, 2023 in Novato, California.
Justin Sullivan | Getty Images News | Getty Images

While consumers cannot control the changes companies make to grocery store products, they can take steps to be more mindful of how much they are spending.
Switching to a different brand may be one way to save, according to The Kitchn’s Weinraub, particularly by opting for store brands. Many stores are expanding their private label lines, which are generally cheaper than brand names, she said.
Taking the time to do some comparison shopping can also help, Weinraub said.
One staff writer at The Kitchn experimented by shopping in person at the grocery store for one month and then buying exclusively online for another month. She was shocked when she compared her receipts, discovering she spent over twice as much in person, Weinraub said.
Avoiding those in-person impulse purchases may help you save more than you think, she said.
Other shoppers have switched retailers and found that change “literally saved them hundreds of dollars,” Weinraub said.
“These strategies become increasingly important, as the prices continue to either maintain or creep up, or you seem to be getting less for the same amount of money,” she said.
“You do need to get more creative to stretch your dollar further.” More

In this photo illustration, the CrowdStrike Holdings, Inc. logo is displayed on a smartphone screen. 
Rafael Henrique | SOPA Images | Lightrocket | Getty Images

Investors’ worries about the prospect of higher-for-longer interest rates have made a comeback, pulling the major averages lower this past week.
Even as markets seem turbulent for now, it’s key for investors to keep a long-term focus and to find stocks that can offer attractive returns for years to come.

With that in mind, here are three stocks favored by the Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

CrowdStrike

This week’s first stock pick is cybersecurity provider CrowdStrike (CRWD). The company recently impressed investors with strong quarterly results and upbeat guidance. It also announced that it would acquire Flow Security, which provides cloud data runtime security solutions.  
Mizuho analyst Gregg Moskowitz highlighted that CrowdStrike is experiencing solid traction for its Falcon Cloud Security, Identity and next-gen LogScale SIEM (security information and event management) offerings, with management disclosing that these products collectively contributed more than $850 million to annual recurring revenue.
The analyst also noted that the company closed several large transactions in the fourth quarter, including more than 250 deals with a value of greater than $1 million. Additionally, deal volume surged 30% year over year across all customer cohorts.
Explaining his bullish stance, Moskowitz said, “CRWD’s cloud platform remains very differentiated, its GTM [go-to-market] is unrivaled,” and the company is witnessing more success beyond the traditional endpoint security markets.

The analyst views CrowdStrike as a generative artificial intelligence beneficiary. Moskowitz reiterated a buy rating on CRWD stock and raised the price target to $390 from $360.
Moskowitz ranks No. 132 among more than 8,700 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, with each delivering an average return of 16.5%. (See CrowdStrike Ownership Structure on TipRanks) 

Nike

We move to athletic footwear and apparel maker Nike (NKE). Earlier this month, Guggenheim analyst Robert Drbul reiterated a buy rating on Nike stock with a price target of $130, adding it as a “best idea.” The analyst thinks that the pullback in the stock — which is down more than 8% in 2024 — offers an attractive entry point with a favorable risk/reward profile.
“We believe Nike is laying the groundwork for impactful launches of new product (led by basketball, but also running) to deliver an acceleration in top line growth in 2H24 and into 2025,” said Drbul.
The analyst noted the company has been increasing its focus on the highly competitive running category after losing ground over the past few years. He anticipates that the category’s growth will be supported by an array of new launches, including the Pegasus 41.
Drbul also expects the Nike brand to be highly visible at the upcoming 2024 Summer Olympics. Further, he thinks that the Jordan brand continues to be strong and that it presents a large opportunity for the company in the international, women’s and kids’ segments. He highlighted that the Jordan brand is on the path to emerge as the second-largest brand in North America.
Additionally, the analyst sees the possibility of gross margin expansion, with higher prices, favorable ocean freight rates and supply chain improvements more than offsetting the impact of increased product costs.
Drbul holds the 565th position among more than 8,700 analysts tracked by TipRanks. His ratings have been profitable 59% of the time, with each delivering an average return of 7.9%. (See Nike Stock Buybacks on TipRanks) 

BJ’s Wholesale Club

Warehouse chain BJ’s Wholesale Club (BJ) recently reported mixed results for the fourth quarter. The company’s earnings surpassed analysts’ consensus estimate, but revenue, which grew 8.7% year over year, fell short of expectations.
Nonetheless, Baird analyst Peter Benedict was impressed with the company’s performance. He reiterated a buy rating on BJ stock and increased the price target to $90 from $80. The analyst noted that the company delivered encouraging top-line key performance indicators, including traffic and units, even as disinflation continued to weigh on the average basket size.
The analyst thinks that BJ’s is making good progress in transforming its general merchandise business through various efforts, including enhancing its assortment and product presentation and ramping up its marketing efforts. Interestingly, general merchandise comps are expected to outpace grocery comps in FY24.
Benedict also highlighted BJ’s solid real estate pipeline and its plan to open 12 clubs this year. Further, he noticed the retailer’s healthy membership trends, with membership fee income increasing 6.5% in the quarter and the tenured renewal rate remaining strong at 90%.  
“With a healthy balance sheet and still-reasonable valuation, we continue to highlight BJ as an attractive long-duration mid-cap staple GARP [growth at a reasonable price] idea,” the analyst said.    
Benedict ranks No. 74 among more than 8,700 analysts tracked by TipRanks. His ratings have been profitable 69% of the time, with each delivering an average return of 15.2%. (See BJ’s Wholesale Technical Analysis on TipRanks)  More

Smart Tax Planning

Some tax professionals are bracing for more crypto scrutiny as the IRS beefs up digital asset service, reporting, compliance and enforcement programs.
Experts cover how to answer the “digital assets” question on your return, calculate crypto taxes and handle reporting.
When you trade digital currency or sell it at a profit, it may be subject to capital gains or regular income taxes, depending on the “holding period” or how long you owned the asset.

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Whether you’re a longtime crypto investor or recently purchased digital assets, here are some key things to know from crypto tax experts. 

How to answer Form 1040 ‘digital assets’ question

Cryptocurrency has become a priority area for the IRS, and the agency shared guidance in January about reporting digital currency this tax season.
Since tax year 2019, the IRS has collected crypto data on tax returns with different versions of a yes-or-no question. For 2023, there’s a “digital assets” question on the front page of Form 1040, along with returns for estates and trusts, partnerships, corporations and S corporations.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

However, many crypto investors don’t realize the term “digital assets,” which includes cryptocurrency, stablecoins, nonfungible tokens and more, applies to them, said enrolled agent Matt Metras, owner of MDM Financial Services. 

For 2023, you must answer “yes” if you sold crypto; traded one coin for another; or received digital currency as a payment, reward or award, according to Form 1040 instructions. You could answer “no” if you bought crypto with U.S. dollars and still hold the asset.

Yes-or-no questions are quite powerful.

Andrew Gordon
President of Gordon Law Group

“Yes-or-no questions are quite powerful,” said Andrew Gordon, tax attorney, certified public accountant and president of Gordon Law Group.
If you have crypto profits or income and select “no” for the digital assets question, the IRS could argue there’s “willfulness” in intentionally violating the law, Gordon said.
However, the 2023 digital assets question does not apply to bitcoin futures ETFs or spot bitcoin ETFs, he said.

How to calculate crypto taxes

When you trade digital currency or sell it at a profit, it may be subject to capital gains or regular income taxes, depending on the “holding period” or how long you owned the asset. 
“They’re treated the same as stocks or other property,” and the gain is the difference between your “basis” or purchase price and the value when you sell or exchange the asset, Gordon said. 
If you hold crypto for more than one year, you’ll qualify for long-term capital gains of 0%, 15% or 20%, depending on your taxable income. By contrast, short-term capital gains or regular income taxes apply to assets owned for one year or less.

Both brackets use “taxable income,” which you calculate by subtracting the greater of the standard or itemized deductions from your adjusted gross income.
For higher earners, selling crypto after one year could “cut your rate in half,” which is why tracking your purchase date is so important, Gordon said.

How crypto tax reporting works

Many investors rely on tax forms to file returns every year. But it’s harder for crypto investors without reliable reporting, experts say. 
For 2023, you may receive Form 1099-MISC for rewards or income, Form 1099-B for transactions or no forms at all, depending on the exchange.
Plus, if you receive crypto tax forms, there can be basis reporting errors if you’ve moved currency from one exchange to another.
The U.S. Department of the Treasury and IRS released proposed regulations, including a standardized Form 1099-DA for digital asset reporting, for transactions on or after Jan. 1, 2025.
In the meantime, crypto investors should report activity based on personal record-keeping, which can be challenging with a high volume of activity, Metras said.
“Once you have more than five transactions, trying to do it yourself in an Excel spreadsheet becomes overwhelming,” he said. More

As inflation comes down, retirees will likely see lower Social Security cost-of-living adjustments.
To prepare for smaller increases to their monthly checks, there are steps retirees can take to protect their income now.

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High inflation has prompted higher Social Security cost-of-living adjustments.
But as the rate of price growth subsides, the annual increases for Social Security may fall in 2025 and beyond, predicts Mary Johnson, a Social Security and Medicare policy analyst at The Senior Citizens League, a nonpartisan senior group.

In 2024, more than 66 million Americans are getting a 3.2% increase to their monthly Social Security checks. For retirees, the average increase is about $59 per month, according to The Senior Citizens League.
That adjustment is far lower than the 8.7% COLA beneficiaries saw in 2023 or the 5.9% boost in 2022, both of which were the highest in more than 40 years.
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The benefit boost beneficiaries saw in 2024 is still above the 2.6% average over the past 20 years, according to The Senior Citizens League.
But that may be poised to change as the rate of inflation comes down.

Early estimates for the 2025 Social Security COLA

New government data points to a 2.4% Social Security COLA for 2025, The Senior Citizens League estimates, based on new government inflation data released this week.
That estimate is subject to change. The Social Security Administration typically announces the COLA for the following year in October.
The annual adjustment is calculated using third-quarter data from a subset of the consumer price index, the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. As of February, the CPI-W increased 3.1% over the past 12 months.
“This is way early,” Johnson said. “It will change multiple times since the COLA is on the average inflation in the third quarter of the year against the previous year.”
“A lot can happen between now and then,” she said.
In the meantime, experts say there are steps retirees can take to help compensate for the prospect of lower benefit increases.

Make the most of your cash

While inflation is coming down, interest rates savers can earn on their cash are still the highest they’ve been in years.
For retirees who have extra money in their monthly budget, it can be helpful to set those sums aside to help prepare for unexpected expenses that may crop up later, Johnson said.
Online savings accounts are offering higher returns on cash. Certificates of deposit also provide a way to guarantee a certain return over a short- or long-term period even as interest rates come down.

With inflation still elevated, it also helps to limit fixed expenses, as well as try to find ways to cut and save, said Lisa Featherngill, a certified financial planner and director of wealth planning at Comerica Wealth Management in Winston-Salem, North Carolina.
“We highly suggest that people in retirement do an annual cash flow projection,” Featherngill said.
That can help identify any difference between expected income and expenses.
To make up the difference, retirees may use investment income, if they have it, or find other ways of cutting spending or generating returns on their cash, she said.

Consider other sources of fixed income

For the average American, Social Security replaces about 40% of the income they received while working, said Kelly LaVigne, vice president of consumer insights at Allianz Life, which specializes in annuities and life insurance.
“You’ve got to get that other 60% from somewhere,” LaVigne said.
It helps to invest your savings to grow for the future when you need to withdraw from that money, he said.
Annuities, which provide fixed income in retirement in exchange for a lump-sum investment, can be one way to supplement a retiree’s income, LaVigne said.

Consult with a financial advisor

Before purchasing an annuity or other retirement income strategy, it helps to consult with a professional.
“Having a really good financial advisor is the first step,” Featherngill said.
Many financial advisors are licensed to sell annuities. Ideally, they will not be dedicated to one company’s products and can shop around to find the best deal for you, she said.

Importantly, they can also look at your overall financial situation to evaluate whether an annuity is the right decision for you, or whether other strategies may better help you in retirement.
“The most important thing when you’re choosing a financial advisor is to choose someone who you’re comfortable with,” LaVigne said.
To accomplish that, it helps to talk to several professionals before selecting one.
“You have to interview them for the job,” LaVigne said, and find someone whose style works for you.
Retirees who have lower incomes may be able to find more information from their local senior centers and other community resources, Johnson suggested.

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After years of being ignored, menopause has entered the public conversation.
Celebrities from Drew Barrymore to Naomi Watts have opened up about symptoms and promoted products. Yet despite the increased chatter, there is a long way to go when it comes to treating symptoms — and a lot of opportunities for companies to step in to fill the gap.

In fact, menopause is among the female health conditions with the highest unmet need and has “enormous potential for innovative treatments,” according to a recent McKinsey report.
The management consultant estimates the global market potential to treat symptoms ranges from $120 billion to as much as $350 billion globally.
Menopause occurs when women have gone 12 consecutive months without a menstrual period. While that happens, on average, at around age 51, women can have symptoms for years beforehand in what’s known as perimenopause. Symptoms can also continue in the postmenopausal phase.
Those symptoms include hot flashes, anxiety, weight gain, vaginal dryness, mood changes, sleep problems and changes in skin conditions. More than 450 million women worldwide are affected by menopause and perimenopause symptoms, according to McKinsey.
There is also a big unmet demand for menopause products and services, said Anna Pione, a partner at McKinsey who leads the firm’s research on the future of wellness.

Menopause is “underserved, underfunded, underpaid attention to,” she said. “That would apply to women’s health in general, and then specifically and acutely to menopause in particular.”

‘Exciting’ developments

Hormone therapy was the typical menopause treatment for decades. However, it got a bad rap in 2002 after a Women’s Health Initiative study found estrogen plus progestin therapy increased a woman’s risk of breast cancer and heart disease.
“A lot of women bailed off hormone therapy for their own fear, or because their doctors were afraid, or some combination thereof,” said Dr. Stephanie Faubion, director of the Mayo Clinic Center for Women’s Health and medical director of the nonprofit Menopause Society.
From 2002 to 2009, hormone therapy claims were reduced by more than 70%, a 2012 study showed.
“It left a lot of women without any management at all,” Faubion said.
However, research now shows that the benefits may outweigh the risks for women under age 60, or less than 10 years out of their menopause diagnosis.
“Our knowledge has changed,” said Dr. Karen Adams, a Stanford University professor and director of the school’s menopause and healthy aging program. “It is really very exciting, but women are left shaking the trees trying to find someone who can help them.”

Investing in the theme

There are not many publicly-listed companies in the space. The largest U.S. name is Pfizer, which has a number of products in its portfolio. They include Duavee and Premarin, hormone therapy treatments for hot flashes and the prevention of osteoporosis.

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Pfizer year to date

Then, there is tiny Biote, which has a market cap just north of $400 million. The company, which went public in May 2022 through a SPAC deal, makes customized bioidentical hormone pellets to address hormone imbalances.
Hormone treatment in general is an area of focus that is “really bubbling up to the surface,” said Jefferies analyst Kaumil Gajrawala, who has a buy rating on Biote.
Menopause is the largest part of its market, he said. Biote uses blood tests to customize its hormone pellets, which are inserted into the body subcutaneously.
“It gives you that consistent amount of delivery, and … there’s no concern about compliance and if you’ll remember a day or forget a day,” he said. “What it means in the end is that you feel better.”

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Biote year to date

Meanwhile, Dare Bioscience, which has an even smaller market cap of about $47 million, has a hormone therapy in the pipeline. The clinical-stage biopharmaceutical company, which focuses on women’s health, has an intravaginal ring hormone therapy that is set to progress to a single Phase 3 study.
There is also a race to find non-hormone treatments.
Last May, the Food and Drug Administration approved Tokyo-based Astellas Pharma’s Veozah, also known as fezolinetant, to treat hot flashes.
Bayer also has a drug in its pipeline called elinzanetant. The German company said in January that therapy reduced the frequency and severity of hot flashes and improved sleep in two late-stage trials. The results of a third phase 3 study is expected in coming months, Bayer said. It will then submit for approval.
In addition, late-clinical-stage biopharmaceutical company Vistagen Therapeutics, with a market cap of about $100 million, has a trial underway for a hormone-free nasal spray to treat hot flashes.
In the non-drug category, fertility benefits manager Progyny recently announced it was expanding into menopause coverage by partnering with private companies Gennev and Midi Health.
“The fact that they are focusing on menopause as one of the next legs of the stool is an indicator of the potential opportunity there,” said Sasha Kelemen, the head of women’s health investment banking at Leerink Partners.

Private innovation

Still, much of the innovation in menopause is happening in the private space.
“Menopause is inevitable, like death and taxes, and all women will go through this,” Kelemen said. “We just don’t have a lot of public women’s health companies yet, and hopefully that will change.”
In 2022, Kelemen orchestrated a deal for Unified Women’s Healthcare to buy Gennev, the Progyny partner that’s a digital menopause care delivery platform. Kelemen would not disclose the financial terms.
Midi Health, the other Progyny partner that’s a virtual care clinic specializing in perimenopause and menopause, is another company attracting investor dollars. In September, Alphabet’s venture capital arm, Google Ventures, led a $25 million Series A funding round for the company, bringing its total funding to $40 million.
Still, women’s health has long been underfunded, and menopause is getting just a small slice of that pie.
“The dollars don’t match the conversation that’s happening,” Kelemen said. “While it’s growing, it’s still growing too slowly and definitely not in any way proportionate to the potential impact and the need of the actual population” that needs to be served.
That said, Kelemen is optimistic funding will continue to increase. She’s also bullish on consolidation in the space and the potential for new innovations.
“Because it is a hormonal change for a 10-, 15-, 20-year period, the needs of women will change,” she said. “There’s opportunity for multiple platforms to succeed.” More

The White House touted its actions to reduce the expenses burdening students, including moving to end origination fees on student loans.
The “reforms would save students and borrowers billions in unnecessary fees and improve the college and loan repayment experience,” a statement from the Biden administration said.

President Joe Biden announces the cancellation of an additional $1.2 billion in student loan debt for about 153,000 borrowers, at meeting with community at Culver City Julian Dixon Library in Culver City, CA.
Irfan Khan | Los Angeles Times | Getty Images

The White House is talking up its actions to reduce the expenses burdening students, including moving to end origination fees on student loans.
The “reforms would save students and borrowers billions in unnecessary fees and improve the college and loan repayment experience,” according to a statement from the Biden administration released on Friday.

While most private lenders have done away with student loan origination fees, the federal government still charges them. Federal student loan borrowers can face expenses of 1% to 4% of their total borrowing amount. President Joe Biden’s 2025 budget, released earlier this week, calls for the end of these fees.
The White House said on Friday it considers these expenses to be “junk fees,” defined as “hidden costs or surprise fees that companies and institutions include on customer or student bills, increasing their costs.”
Consumer advocates praised Biden’s efforts.
“By eliminating origination fees on federal student loans, borrowers should be able to borrow less to cover their costs,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
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Around 7 million undergraduate, graduate and parent student loan borrowers pay origination fees, which the White House described as “nothing more than a tax imposed on students by the government, costing consumers more than $1 billion annually.”
A typical teacher or nurse taking out federal loans for undergraduate and graduate degrees will pay $1,000 or more over the life of their loan because of these fees, the White House said in Friday’s statement.
“Parents often fare even worse, with the average parent borrower paying out an additional $2,800 or more,” it said.
Ultimately, the elimination of these fees would require an act of Congress, said higher education expert Mark Kantrowitz.
But, he said: “There is bipartisan support for such a change.”

End to college bank fees, textbook charges

The White House on Friday also said that the U.S. Department of Education is undergoing negotiated rulemaking to curb the “harmful fees” on college accounts charged by certain banks. For example, the department is looking to ban financial institutions that contract with colleges from charging insufficient fund and closure fees.
Between 2021 and 2022, financial institutions generated more than $17.3 million in revenue from more than 650,000 student bank accounts, the Consumer Financial Protection Bureau found. These banks may hit students with overdraft fees as high as $36, among other charges, even as many other financial institutions have ended such practices.
Account holders at historically Black colleges and universities, or HBCUs, and Hispanic-servicing institutions paid especially high fees, on average, according to the CFPB.

The Education Department is also looking to end automatic billing on tuition for textbooks, the White House said.
“Competitive markets provide consumers choice and value, but automatic charges for textbooks and course materials leave students with little ability to meaningfully shop around for better prices or to utilize free and open-source textbooks,” the Biden administration said.
In addition, it is considering requiring colleges to return any unused financial aid funds for meal plans to students. More

Women and Wealth Events
Your Money

The average woman lives roughly six years longer than men, to about 79 years old.
That longevity makes guaranteed income sources such as Social Security especially important, according to one expert.
Women also tend to save less money for retirement than men, putting them in a tougher financial position.

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WEST PALM BEACH, Fla. — Choosing when to claim Social Security is a decision that can carry big financial stakes for all older Americans, but it’s especially important for women.
“It all comes down to longevity,” Mary Beth Franklin, a certified financial planner and Social Security expert, said Thursday at Financial Advisor Magazine’s annual Invest in Women conference in West Palm Beach, Florida.

“Women tend to live longer than men and tend to spend more years in retirement than men,” Franklin said.

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Here’s a look at more coverage in CNBC’s Women & Wealth special report, where we explore ways women can increase income, save and make the most of opportunities.

The age at which one claims Social Security affects the size of their monthly benefits.
There’s a financial incentive to wait. People who claim before their “full retirement age” see their benefits permanently reduced. Someone who claims this year, upon turning 62 years old, would have a benefit about 30% lower than if they waited until their full retirement age of 67, according to the Social Security Administration.
Beneficiaries get an 8% guaranteed increase in their Social Security checks for every year they defer beyond their full retirement age, up to 70 years old. This is due to something called “delayed retirement credits.”
For example, someone who claims at 70 would get 124% of their full benefit at age 67.

That income is guaranteed for life.

Why Social Security is ‘crucial’ for women

Guaranteed income such as Social Security is “crucial” for women, Franklin said.
Women live almost six years longer than men, on average, to age 79 versus 73½ years old, respectively, according to the Centers for Disease Control and Prevention.
That life expectancy gap has widened. It was 4.8 years as recently as 2010.
This means women must spread their income over a longer time in retirement, raising the odds they’ll run out of money.
Women also often put aside less savings relative to men, both because their average earnings at work are lower and they may have taken time off to care for kids or an aging parent, for example, Franklin said.

What to consider when claiming benefits

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Social Security monthly benefits are generally based on age and lifetime earnings history.
“Full retirement age” is the age at which someone becomes eligible for their full Social Security benefit. That age may be between age 66 and 67, depending on when someone was born.
However, Americans can claim benefits as early as age 62.
Doing so locks in a lower monthly benefit for life. The claiming decision isn’t reversible except in a few circumstances, Franklin said.

There may be reasons why it would make sense to claim early: for example, someone who’s in poor health and doesn’t expect to live a long time, or for households that “need the money” now, perhaps due to a job loss, Franklin said.
There are also complex rules for couples regarding spousal and survivor benefits and in circumstances of divorce that may also make it more advantageous to claim early in certain instances, she said.
Importantly, continuing to work after claiming benefits — if before full retirement age — may temporarily reduce your Social Security benefits due to an earnings cap. That cap is $22,320 in 2024.

It all comes down to longevity.

Mary Beth Franklin
certified financial planner and Social Security expert

Another benefit of waiting: Delaying a claim also means a larger annual cost-of-living adjustment, in dollar terms, Franklin said. That’s because the COLA percentage would be applied to a larger base of benefits each year.
Delaying past 70 years old likely wouldn’t yield a financial benefit since delayed retirement credits don’t accrue past that age, Franklin said.  

Don’t claim early out of political fear

It also doesn’t make sense to claim early out of fear Social Security’s trust funds will run dry, Franklin said. Without action from Congress, that’s currently forecast to happen in 2033, at which point roughly 80% of promised benefits will be payable.
“[Congress] will step in, even if it’s at the last minute,” Franklin said.
“If you need the money, go ahead and claim Social Security early,” she added. “But if you’re claiming Social Security out of fear. It’s like selling stocks in the down market,” since you’ve “locked in a loss.”

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April 15 is the federal income tax deadline for most taxpayers, but certain filers in eight states affected by natural disasters have until June 17.
There are several free tax-filing options this season, including Direct File and IRS Free File, among others.
It’s possible you can still reduce your bill with credits and deductions.

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The federal tax deadline is officially one month away for most filers — and experts say there are some key things to know this season.
As of March 1, the IRS received roughly 54 million individual returns, which is less than 40% of the 146 million expected this season, according to the agency.

So far, the average refund is $3,182, up about 5% from the same period last year. Of course, the average may change as more returns flood in.
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April 15 is the federal deadline to file and pay taxes owed for most filers. But parts of eight states affected by natural disasters have until June 17, according to IRS spokesperson Eric Smith.
“You get the extra time, automatically, meaning you don’t need to ask for it,” he said.
Here are three key things to know before the filing deadline:

1. You have several free tax-filing options

This season, taxpayers have several free filing options, including the IRS Direct File pilot, a program directly through the agency, which fully opened on Tuesday to certain taxpayers in 12 states.
You may also opt for IRS Free File, a partnership between the IRS and a nonprofit coalition of eight software partners. For 2023, you can use Free File with an adjusted gross income of $79,000 or less, up from $73,000 in 2022.  
Other free filing options include Volunteer Income Tax Assistance, Tax Counseling for the Elderly, MilTax and private company software.

2. See if you can claim a credit that millions ‘overlook’

Nearly 1 in 5 eligible taxpayers miss the earned income tax credit, or EITC, a tax break for low- to moderate-income workers that averaged $2,541 last season, according to IRS Commissioner Danny Werfel.
“This is a lot of money” and millions of Americans “simply overlook it,” he told reporters on a press call in January.For tax year 2023, the EITC is worth up to $7,430 per family with three or more children, up from $6,935 in 2022. Eligible workers between ages 25 and 64 without a qualifying child can receive up to $600.
Some filers may also be eligible for tax credits for buying a vehicle or making home energy improvements in 2023, according to the IRS.

3. There’s still time to lower your tax bill

After Dec. 31, “the toolbox of options is much smaller” for lowering your tax bill or boosting your refund for that tax year, said certified financial planner and enrolled agent John Loyd, owner at The Wealth Planner in Fort Worth, Texas. But there are still strategies you can employ.One of the first choices is typically pretax individual retirement account contributions, which may offer a deduction, depending on your workplace plan participation and income. Similarly, you could snag a tax break by making contributions to a spousal IRA.
The limit is $6,500 per account (with an additional $1,000 if you’re age 50 or older) and you have until the tax deadline for 2023 contributions. Depending on your income, you could also qualify for the saver’s credit for making those retirement contributions, worth up to 10%, 20% or 50% of your deposit.
There’s also still time for 2023 health savings account contributions, assuming you have an eligible high-deductible health insurance plan. HSAs offer triple tax breaks with an upfront deduction, tax-free growth and tax-free withdrawals for eligible medical expenses. 
— CNBC’s Sharon Epperson contributed reporting. More