Markus Andrews

Millions of Social Security beneficiaries have received their first benefit checks for 2025.
That includes a more modest 2.5% cost-of-living adjustment, the lowest increase since 2021.
Still, retirees face a higher cost of living.

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Millions of Social Security beneficiaries have now received their first benefit checks for 2025.
The new 2.5% cost-of-living adjustment — which adds $50 per month to retirement benefits on average — marks the lowest increase since 2021, when inflation spiked shortly thereafter.

With prices still high, many beneficiaries are likely feeling the increase “wasn’t quite enough,” though “every little bit helps,” said Jenn Jones, vice president of financial security at AARP, an interest group representing Americans ages 50 and over.
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“When you’re living on a fixed income, when even what some might think are small or mild increases to everyday expenses happen, they can create a real financial burden for older Americans,” Jones said.
One measure, the Elder Economic Security Standard Index — also known simply as the Elder Index — developed by the Gerontology Institute at the University of Massachusetts in Boston, evaluates just how much it costs older adults to pay for their basic needs and age in place.

Social Security alone doesn’t cover adequate lifestyle

Based on a national average, a single person would need $2,099 per month if they are a homeowner with no mortgage, to cover housing, food, transportation, health care and other miscellaneous expenses, according to 2024 Elder Index data.

That goes up to $2,566 per month necessary for single renters, and $3,249 per month for single homeowners with a mortgage.
An older couple who own a home without a mortgage would need $3,162 per month, according to the index. That increases to $3,629 per month for a couple who rents, and $4,312 per month for a couple who has a mortgage on their home.

Those amounts exceed the average Social Security retirement benefits Americans stand to receive. In 2025, individual retired workers receive an average $1,976 per month, while couples who both qualify for benefits have an average $3,089 per month.
To be sure, those Elder Index thresholds are based on national averages, and in some areas of the country retirees may be able to stretch their incomes further than others. Yet the data typically shows it’s difficult to live just on Social Security benefits.
“What we find with the Elder Index is that there isn’t a single county in the country where the average Social Security benefit covers an adequate lifestyle,” said Jan Mutchler, professor of gerontology at the University of Massachusetts in Boston, of comparisons that were run prior to the 2024 data.

‘Prices might be rising faster’

As a record number of baby boomers turn 65, research from the Alliance for Lifetime Income has found 52.5% of that cohort will rely primarily on Social Security for income in retirement since they have assets of $250,000 or less.
The Social Security cost-of-living adjustment aims to track inflation. Yet because those adjustments are made annually, they come with a lag, according to Laura Quinby, associate director of employee benefits and labor markets at the Center for Retirement Research at Boston College.
As inflation spiked, reaching a peak in 2022, Social Security’s COLAs also reached four-decade highs. In 2022, Social Security beneficiaries saw a 5.9% boost to benefits, which was followed by a higher 8.7% increase in 2023. That subsided to a 3.2% increase in 2024, followed by a more modest 2.5% bump for 2025.
The Social Security COLAs largely made up for the inflation surge that happened in 2022, Quinby said. However, inflation is now ticking up again, she said. The consumer price index rose 0.4% in December, slightly above what had been estimated for the month, and was up 2.9% for the year.
“We’re in another period where prices might be rising faster than the Social Security COLA,” Quinby said.

How much retirees are affected by inflation varies based on three factors — how much their assets keep up with rising prices, the amount of debt they have at fixed interest rates and whether they change their savings, investment or work behaviors, the Center for Retirement Research has found.
Mary Johnson, a 73-year-old independent Social Security and Medicare analyst, said her Social Security cost-of-living adjustment for 2025 has mostly been consumed by rising costs. While Social Security represents about 40% of her income, much of her other retirement assets are invested in stocks, which saw record growth last year.
Still, Johnson said she’s grappling with increases to her homeowner’s insurance, home heating and cooling bills, food costs, and drug plan premiums. One bright spot is that she did see her auto insurance decline last year.

‘Biggest game changer this year’

A notable change retirees have to look forward to in 2025 is a new $2,000 annual cap on out-of-pocket Medicare Part D prescription drug costs, that was enacted with the Inflation Reduction Act under President Joe Biden.
“That’s the biggest game changer this year for older Americans,” said AARP’s Jones.
More than 95% of Medicare Part D beneficiaries will benefit from that new out-of-pocket cap, AARP’s research has found.
Before the change, the amount of money Medicare Part D beneficiaries spent on their medications was unlimited, with potentially thousands of dollars in out-of-pocket costs, according to Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a provider of health policy research.

The change provides real financial relief and peace of mind, she said.
“If they’re not taking expensive medications now, but they do in the future, they won’t have to potentially go bankrupt or just simply not fill their prescriptions because they cannot afford the out-of-pocket cost,” Cubanski said.
To be sure, Medicare beneficiaries still face other rising costs, particularly with regard to monthly Part B and Part D premiums. Because those payments can be deducted directly from Social Security checks, they may affect just how much of a COLA increase beneficiaries see.
In 2025, the standard monthly Part B premium is $185 per month, while the average standard Part D premium is $46.50. Notably, higher-income beneficiaries pay more expensive rates, though that may not be as noticeable in their household budgets, Cubanski said.
“For others, the fact that they’re paying premiums for Medicare coverage certainly takes away from the amount of money that they have for other essentials,” Cubanski said. More

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The stock market has been coasting on enthusiasm as President Donald Trump takes the reins, but plenty of questions remain over tax cuts and tariffs. Dividend-paying stocks can offer investors some cushioning if the market becomes rocky.
Amid an uncertain macro backdrop, investors looking for stable returns can add some solid dividend stocks to their portfolios. To select the right dividend stocks, investors can consider insights from top Wall Street analysts, as they analyze a company’s ability to pay consistent dividends, backed by solid cash flows.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros as tracked by TipRanks, a platform that ranks analysts based on their past performance.
AT&T
This week’s first dividend stock is telecommunications company AT&T (T). Recently, the company announced a quarterly dividend of $0.2775 per share, payable on Feb. 3. AT&T stock offers a dividend yield of nearly 5%.
Recently, Argus Research analyst Joseph Bonner upgraded AT&T stock to buy from hold, with a price target of $27. Bonner’s bullish stance follows AT&T’s analyst day event, where the company discussed its strategy and long-term financial goals.
Bonner noted that management raised its 2024 adjusted EPS outlook and revealed strong estimates for shareholder returns, earnings and cash flow growth, as AT&T “finishes extricating itself from some troublesome acquisitions and focuses on the convergence of wireless and fiber internet services.”
The analyst expects the company’s cost-saving efforts, network modernization, and revenue acceleration to gradually reflect in its performance. He thinks that management’s vision of capturing opportunities arising from the convergence of wireless and fiber, along with the company’s strategic investments, provides a compelling outlook for future growth and shareholder returns.

Bonner noted that at the analyst day event, AT&T indicated that neither dividend hikes nor M&A are under consideration while the company invests in 5G and fiber broadband networks and continues to reduce its debt. That said, management is committed to protecting its dividend payments after reducing them by almost half in March 2022. Bonner highlighted that AT&T plans to return $40 billion to shareholders in 2025-2027 via $20 billion in dividends and $20 billion in share repurchases.
Bonner ranks No. 310 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 14.1%. See AT&T Stock Buybacks on TipRanks.
Chord Energy
We move to Chord Energy (CHRD), an independent oil and gas company operating in the Williston Basin. Under its capital returns program, Chord Energy aims to return more than 75% of its free cash flow. The company recently paid a base dividend of $1.25 per share and a variable dividend of 19 cents per share.
Ahead of Chord Energy’s Q4 2024 results, Mizuho analyst William Janela reiterated a buy rating on the stock with a price target of $178, calling CHRD a Top Pick. The analyst said that his Q4 2024 estimates for CFPS (cash flow per share) and EBITDX (earnings before interest, tax, depreciation and explorations costs) are essentially in line with the Street’s estimates.
Janela added that compared to its peers, there is more visibility in Chord Energy’s outlook for this year, as it has already issued its preliminary guidance. Further, he expects the company to show enhanced capital efficiencies on a year-over-year basis, given that it has fully integrated the assets from the Enerplus acquisition.
“A more defensive balance sheet (~0.2x net debt/EBITDX, one of the lowest among E&P peers) also leaves CHRD well-positioned in a volatile oil price environment,” said Janela.
While CHRD stock underperformed its peers in 2024, the analyst noted that shares are now trading at a wider discount to peers on EV/EBITDX and FCF/EV basis, which he thinks underappreciates the company’s improved scale and high-quality inventory in the Bakken basin following the Enerplus acquisition. Finally, based on his Q4 2024 free cash flow (FCF) estimate of $235 million, Janela expects about $176 million of cash return, including $76 million in base dividends. He expects the majority of the variable FCF portion to reflect share buybacks, like in the third quarter.
Janela ranks No. 656 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 52% of the time, delivering an average return of 19.2%. See Chord Energy Insider Trading Activity on TipRanks.
Diamondback Energy
Another Mizuho analyst, Nitin Kumar, is bullish on Diamondback Energy (FANG), an independent oil and natural gas company that is focused on reserves in the Permian Basin. The company paid a base dividend of 90 cents a share for Q3 2024.
The company is scheduled to announce its results for the fourth quarter of 2024 in late February. Kumar expects FANG to report Q4 2024 EBITDA, free cash flow, and capital expenditure of $2.543 billion, $1.243 billion and $996 million, against Wall Street’s consensus of $2.485 billion, $1.251 billion, and $1.004 billion, respectively.
The analyst stated that the fact that FANG has maintained its preliminary outlook for 2025, which it issued while announcing the Endeavor Energy Resources acquisition in February 2024, reflects strong execution and modest cost savings.
Overall, Kumar reaffirmed a buy rating on FANG stock with a price target of $207. He highlighted that “FANG is a leader in cash return payouts, with 50% of free cash now returned to investors, including a high base dividend yield.”
He added that the company’s high dividend yield reflects its superior cost control and unit margins. Moreover, the analyst thinks that with the completion of the Endeavor acquisition, the scale and quality of the combined asset base are impressive.
Kumar ranks No. 119 among more than 9,300 analysts tracked by TipRanks. His ratings have been profitable 67% of the time, delivering an average return of 14.1%. See Diamondback Ownership Structure on TipRanks. More

If you’re nearing retirement, key changes for 2025 could affect your finances, according to advisors.
Starting in 2025, there’s a higher 401(k) plan catch-up contribution for workers ages 60 to 63.
Plus, there are new rules for inherited individual retirement accounts and boosted Social Security benefits for certain public workers.

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Leverage the 401(k) ‘super catch-up’

For 2025, investors can save more with higher 401(k) plan limits. Employees can defer $23,500 into 401(k) plans, up from $23,000 in 2024. The catch-up contribution limit is $7,500 for workers ages 50 and older.
But thanks to Secure 2.0, there’s a “super catch-up” for investors ages 60 to 63, said certified financial planner Michael Espinosa, president of TrueNorth Retirement Services in Salt Lake City. 

The catch-up contribution for employees ages 60 to 63 jumps to $11,250 for 2025. That brings the total deferral limit to $34,750 for these workers.
“This could be huge” for deferring taxes in 2025, Espinosa said.
Some 15% of eligible participants made catch-up contributions in 2023, according to Vanguard’s 2024 How America Saves report, based on data from 1,500 qualified plans and nearly 5 million participants.

Avoid a penalty for inherited IRAs

An inherited individual retirement account could boost your nest egg. However, some heirs may face an IRS penalty for missed required withdrawals in 2025, experts say. 
With more focus on shifting economic policy, “it’s easy to see how this one could get buried,” said CFP Edward Jastrem, chief planning officer at Heritage Financial Services in Westwood, Massachusetts.
Since 2020, certain inherited accounts must follow the “10-year rule,” meaning heirs must empty inherited IRAs by the 10th year after the original owner’s death. This applies to heirs who are not a spouse, minor child, disabled, or chronically ill, and certain trusts.
Starting in 2025, the IRS will enforce the penalty on heirs for missed required minimum distributions, or RMDs. The penalty is 25% of the amount that should have been withdrawn. But it’s possible to reduce that penalty if your RMD is “timely corrected” within two years, according to the IRS.
Heirs must take yearly withdrawals if the original IRA owner had reached their RMD age before death.

Social Security benefit change is ‘significant’

If you or your spouse work in public service and expect to receive a pension, new legislation could mean higher Social Security benefits in retirement.
Enacted by former President Joe Biden in January, the Social Security Fairness Act ended two provisions — the Windfall Elimination Provision and Government Pension Offset — that lowered benefits for certain government employees and their spouses.
“This change is significant for many retirees who had their benefits eliminated or reduced,” said CFP Scott Bishop, partner and managing director of Presidio Wealth Partners, based in Houston.
The Social Security Administration is working on the timeline for the new legislation and will update its website when more details are available. More

Qorvo logo of a US semiconductor company is seen displayed on a smartphone and pc screen.
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Company: Qorvo Inc (QRVO)

Business: Qorvo is a global supplier of semiconductor solutions. The company operates through three segments: High Performance Analog (HPA), Connectivity and Sensors Group (CSG) and Advanced Cellular Group (ACG). The HPA segment is a global supplier of radio frequency (RF), analog mixed signal and power management solutions. The CSG segment is a global supplier of connectivity and sensor solutions. The ACG segment is a global supplier of cellular RF solutions for smartphones, wearables, laptops, tablets and other devices.
Stock Market Value: ~$8.41B ($88.94 per share)

Stock chart icon

Qorvo shares over the past 12 months

Activist: Starboard Value

Ownership: 7.71%
Average Cost: $70.92
Activist Commentary: Starboard is a very successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement. Starboard has initiated activist campaigns at 13 prior semiconductor companies, and the firm’s average return on these situations is 85.87% versus an average of 28.91% for the Russell 2000 during the same time periods.

What’s happening

Behind the scenes

Qorvo is a global semiconductor company that specializes in manufacturing radio frequency (RF) chips for applications across mobile devices, wireless infrastructure, aerospace and defense, and other end markets. The company is organized into three operating and reportable segments: (i) High Performance Analog (HPA) supplying RF, analog mixed signal and power management solutions; (ii) Connectivity and Sensors Group (CSG) supplying connectivity and sensor solutions; and (iii) Advanced Cellular Group (ACG) supplying cellular RF solutions for smartphones and other devices. In 2024, Qorvo generated $3.77 billion of revenue, of which approximately 75% was attributable to ACG. While the company is diversified across multiple industries, it is particularly reliant on RF sales for mobile devices, with 46% and 12% of total revenue attributable to just Apple and Samsung, respectively, in FY24.

Qorvo was formed as a result of a merger of equals in an all-stock transaction between RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT) that was announced in February 2014 and completed in January 2015. Starboard is quite familiar with Qorvo considering that the firm was a 13D filer on TriQuint in 2013.  On Oct. 29, 2013, Starboard sent a letter to TriQuint outlining the company’s undervaluation, underperformance, and put forward value-enhancing proposals. On Dec. 2, 2013, Starboard nominated a majority slate of six director candidates to the board for the 2014 annual meeting. However, the engagement never went to a proxy fight, as Starboard issued a letter supporting TriQuint’s proposed merger with RFMD in March 2014 and exited its 13D. In under a year of engagement, Starboard made a 113.15% return on their investment versus 23.80% for the Russell 2000.
The merger was pitched to shareholders as an opportunity to create new growth opportunities in mobile devices, network infrastructure, and aerospace and defense, bolstered by the new company’s scale advantages, product portfolio, improved operating model and $150 million in cost synergies. The announcement was met with tremendous excitement, as shares of TriQuint and RFMD rocketed approximately 200% from the day prior to the announcement up to their combination.  However, one-year post-transaction the newly-formed Qorvo was down 27.7%. For functionally a decade, from merger completion to the day prior to Starboard Value disclosing its 7.71% stake, the stock traded flat, up just a mere 4.5%. This is quite staggering underperformance when semiconductors have been the beneficiaries of tremendous secular tailwinds in recent years. Over the same time period, the Philadelphia SE Semiconductor Index is up over 650%.
The opportunity to improve value at Qorvo is simple, operationally focused and something Starboard has done many times at many semiconductor companies: margin improvement. Despite Qorvo’s excellent product portfolio and competitiveness with peers Broadcom and Skyworks Solutions, the company’s gross and operating margins have been inferior. Last fiscal year, Qorvo had a gross margin of 39.5% and an operating margin of 8.3%, whereas its peer Skyworks boasted margins of 44.2% and 24.9% respectively. Despite having roughly similar levels of revenue ($4.7 billion for Skyworks and $3.8 billion for Qorvo), Qorvo spends 10.3% of revenue on selling, general and administrative expenses versus 6.6% for Skyworks and 18.1% of revenue in R&D versus 12.7% for Skyworks. Moreover, Qorvo spends an additional $104 million (2.8% of revenue) on “other operating expenses.” This is a blaring signal of a board and management team that need discipline and one of the main reasons Qorvo received such a high vulnerability rating in 13D Monitor’s Company Vulnerability Ratings database.
Every activist has a different style with varying levels of success across industries and strategies, but it is hard to find a more successful combination than Starboard at a semiconductor company with margin improvement opportunities. Starboard has previously commenced activist campaigns at the following 13 semiconductor companies: Actel, Microtune, Zoran, DSP Group, MIPS Technologies, Integrated Device Technology, Tessera, TriQuint Semiconductor, Micrel, Integrated Silicon Solution, Marvell, Mellanox Technologies and On Semiconductor. In all of these campaigns, Starboard has had a positive return on its investment and its average return on the 13 is 85.87% versus an average of 28.91% for the Russell 2000 during the same time periods. Starboard’s modus operandi in these situations has been take board seats if necessary, institute a philosophy of discipline that leads to more efficient SG&A and targeted R&D and helps improve operating margins. Additionally, at companies like On Semiconductor that were operating at low utilization levels, Starboard helped size capacity for more realistic manufacturing levels by consolidating fabs and using outside foundries for flexibility. The same opportunity exists here, which could lead to additional margin improvement.
We have no doubt that Starboard will want board seats, and we believe this should be a quick settlement for several reasons. First, Starboard’s experience and track record with semiconductor companies described above is unimpeachable. Second, it is indefensible to be a semiconductor company in 2025 that has deprived its shareholders of any real return over the past ten years. Third, Starboard already has relationships with three of Qorvo’s eight directors including its chairman, all of whom were directors of TriQuint when Starboard engaged there: Walden C. Rhines (chairman), David H. Y. Ho and Roderick D. Nelson. Fourth, of the company’s eight directors, five have sat on the board for the 10 years since the TriQuint /RFMD merger, and one (David H. Y. Ho) has informed the company of his intention to retire and not stand for reelection at the company’s next annual meeting. Once on the board, Starboard’s representatives and the remainder of the board will have the opportunity to evaluate whether this is the right management team to turnaround Qorvo’s recent performance. If they decide that new management is needed, it is important to note that there has been a tremendous amount of consolidation in the semiconductor industry in recent years, which has resulted in many senior and talented operators on the sidelines.
Qorvo’s director nomination window does not open until March 16, 2025, and we would be very surprised if a settlement is not reached before then.
Ken Squire is the founder and president of 13D Monitor, an institutional research service on shareholder activism, and the founder and portfolio manager of the 13D Activist Fund, a mutual fund that invests in a portfolio of activist 13D investments. More

For roughly the past five years, federal student loan borrowers who fell behind on their bills didn’t need to worry about the usual consequences, including the garnishment of their wages and retirement benefits.
That will soon change.
Here’s what borrowers struggling to pay their bills need to know.

Jose Luis Pelaez | Getty Images

For roughly the past five years, federal student loan borrowers who fell behind on their bills didn’t need to worry about the usual consequences, including the garnishment of their wages and retirement benefits.
That will soon change.

In a U.S. Department of Education memo obtained by CNBC, dated Jan. 13, a top Biden administration official laid out for the first time details of when collection activity may resume. In some cases, borrowers could feel the pain as early as this summer.
By late 2024, the number of federal student loan borrowers in default was roughly 5.5 million, the department’s memo said.
Here’s what borrowers struggling to pay their bills need to know about the risks ahead.

Different garnishments to resume at different times

Federal student loan borrowers who’ve defaulted on their loans may see their wages garnished starting in October of this year, according to the Education Department memo. Social Security benefit offsets could resume as early as August.
It may be up to the new administration under President Donald Trump to decide how to handle the resumption of collections, experts said. However, the department under President Joe Biden took some steps to help defaulted borrowers.

Later this year, for the first time, borrowers in default should be able to enroll in the Income-Based Repayment plan “and have a pathway to forgiveness,” the memo says.
Currently, federal student loan borrowers need to exit default before they can access any of the income-driven repayment plans, including the IBR. These plans aim to set borrowers’ monthly bills at a number they can afford, and many end up with a $0 monthly payment.
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Meanwhile, the Biden administration also moved to protect a higher amount of people’s Social Security benefits from the department’s collection powers. When the consequences of defaults resume, those with a monthly Social Security benefit under $1,883 should be able to protect those benefits from offset, compared with the current protected amount of $750 in place today.
“Available data suggest that these actions will effectively halt Social Security offsets for more than half of affected borrowers and reduce the offset amount for many others,” the memo said.
The White House and the U.S. Department of Education did not respond to a request for comment on how the Trump administration plans to handle those measures.

What borrowers can do

Borrowers who are already in default should contact their loan servicer “right away” to talk about resolving the issue, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.
Someone can get out of default on their student loans through rehabilitating or consolidating their debt, Mayotte said.
Rehabilitating involves making “nine voluntary, reasonable and affordable monthly payments,” according to the U.S. Department of Education. Those nine payments can be made over “a period of 10 consecutive months,” it said.

Consolidation, meanwhile, may be available to those who “make three consecutive, voluntary, on-time, full monthly payments.” At that point, they can essentially repackage their debt into a new loan.
If you don’t know who your loan servicer is, you can find out at Studentaid.gov.
Those who aren’t already in default should contact their loan servicer to avoid that outcome, Mayotte said. You may be able to lower your monthly payments on an income-driven repayment plan or pause your payments through a deferment or forbearance. More

About 61% of surveyed adults of ages 18 to 35 are financially stressed, according to a new Intuit survey. 
Unexpected costs or emergencies can contribute to that stress, the report found.
“For emergencies, it’s really having that cash reserve in place. That is the financial plan,” said certified financial planner Clifford Cornell, an associate financial advisor at Bone Fide Wealth in New York City.

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Many young adults have financial stress, and experts say there’s a simple safety net that could help.
About 61% of surveyed Americans of ages 18 to 35 are financially stressed, according to a new Intuit survey. About 21% of respondents say their stress has gotten worse over the past year.

Some of the biggest stressors included high cost of living, job instability and growing housing costs. Of those who identified as financially stressed, 32% said handling unexpected emergencies like medical bills, car repairs and home maintenance trigger their anxiety with cash, the report found.
The site polled 2,000 adults of ages 18 to 35 in December.

Young adults lack a plan for money emergencies

Some of the stress can come from not having a plan — about 32% of all survey respondents admit they lack a clear strategy for managing money setbacks, Intuit found.
Almost half, or 45%, of the group say handling unexpected expenses was a challenge, and 29% have difficulty saving money.
A new report by Bankrate reflects a similar picture. The report found that older generations are more likely to say they could pay for an unexpected $1,000 emergency expense from their savings.

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About 59% of baby boomers, or those of ages 61 to 79, can pay for a $1,000 surprise expense from savings. The cohort is followed by 42% of Gen Xers, or of ages 45 to 60. 
Yet, only 32% of millennials — ages 29 to 44 — and 28% of Gen Z adults — ages 18 to 28 — have the cash readily available, according to the survey, which polled 1,039 respondents ages 18 and older in early December.
“The youngest generations are those who are earliest in their financial journey,” said Mark Hamrick, a senior economic analyst at Bankrate.

‘Setting ourselves up for failure’ without savings

Financial emergencies can catch us by surprise, from needing a locksmith because you lost your keys to unexpectedly losing your job. The best thing you can do to prepare is have savings set aside and carefully using lines of credit, experts say.
“For emergencies, it’s really having that cash reserve in place. That is the financial plan,” said certified financial planner Clifford Cornell, an associate financial advisor at Bone Fide Wealth in New York City.

Having an emergency savings fund is like having a bulletproof vest, Hamrick explained.
“They won’t save you in all outcomes, but it’s a good start,” he said.
Many Gen Zers need to gear up. About 80% of the cohort are more likely than other generations to worry about not having enough money to cover living expenses if they lost their primary job, per Bankrate data.
That’s compared to 72% of millennials, 72% of Gen Xers and 58% of baby boomers.
“We’re really setting ourselves up for failure if we don’t have sufficient emergency savings,” Hamrick said.

How to start an emergency fund

Whether you can put away $10, $50 or $150 a month, the important part is to start building the habit of saving as soon as you can, Cornell said.
If you’re in the position where you haven’t put any thought to saving for unexpected costs, here’s where to start, according to experts: 
1. Open a high-yield savings account
You want your emergency savings to sit in a highly-liquid account, or somewhere you can withdraw savings quickly and without penalties, experts say. To give your funds an extra boost, experts recommend a high-yield savings account.
While interest rates have come down from peak highs, the best high-yield savings accounts offer on average 4.31% annual percentage yields, or APYs, per Bankrate data.
To compare, traditional savings accounts offer a 0.51% APY on average nationwide, per DepositAccounts.

We’re really setting ourselves up for failure if we don’t have sufficient emergency savings.

Mark Hamrick
senior economic analyst at Bankrate

For every $1,000 you add into a HYSA, you can earn about $40 a year in interest at those rates. While $40 doesn’t sound like a lot at first blush, it’s significantly higher than what you’d earn in a traditional savings account, Cornell said. 
There are many HYSAs available. As you consider your options, you want to double-check the one you pick is FDIC-insured, which protects your deposits at insured banks and savings associations if the company fails.
2. Calculate how much you can save every month
Figuring out how much cash you can save will depend on how much money you earn versus spend in a given month, Cornell said. 
Some rules of thumb can be good starting points. For instance, the 50-30-20 rule is a budget framework that allocates 50% of your income toward essentials like housing, food and utilities, 30% toward “wants” or discretionary spending and the remaining 20% to savings and investments.

Yet, it’s not easy to follow, especially for a young person starting out their career — saving 20% of their income can be a tall order, Cornell said.
It’s fine to start off with less, and look for opportunities in your budget to save more. For example, saving part of an annual raise or tax refund.
3. Set a goal
First aim for three months’ worth of expenses as a goal, Cornell said. Once you meet that goal, consider the next: advisors often recommend you ultimately have three to six months, but some people may benefit from even more. In some cases, it’s a year or more.
Imagine having enough cash that can sustain you during a long stretch of unemployment: “It’s kind of like a pillow or a safety blanket,” he said. 
The more variable your income — say, if you depend on commissions or bonuses, or your income fluctuates every month — the more savings you’ll need to hold you over in case something comes up, Cornell said. 
Keep in mind that coming up with enough savings to tide you over for three months can take a long time. While saving so much can be daunting, experts say even having a small buffer of a few hundred dollars can help.
For instance, the Federal Reserve measures how many adults are able to cover a $400 emergency cost, a much lower benchmark.
Even a small level of savings may be enough to cover minor emergencies, or help offset how much you need to borrow. More

The Federal Reserve is likely to hold interest rates steady on Jan. 29 at the end of its two-day meeting.
In his first week in office, President Donald Trump said he’ll “demand that interest rates drop immediately.”
High interest rates have affected all sorts of consumer borrowing costs, from auto loans to credit cards. 

The Federal Reserve is expected to hold interest rates steady at the end of its two-day meeting next week, despite President Donald Trump’s comments Thursday that he’ll “demand that interest rates drop immediately.”
So far, the central bank has moved slowly to recalibrate policy after hiking its key benchmark 5.25 percentage points between 2022 and 2023 in an effort to fight inflation, which is still running above the Fed’s 2% mandate. On the campaign trail, Trump said inflation and high interest rates are “destroying our country.”

But for consumers struggling under the weight of high prices and high borrowing costs, there is little relief in sight, for now.
“Anyone hoping for the Fed to ride in as the cavalry and rescue you from high interest rates anytime soon is going to be really disappointed,” said Matt Schulz, LendingTree’s chief credit analyst. 
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The Federal funds rate, which the U.S. central bank sets, is the rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and savings rates consumers see every day.
Once the Fed funds rate eventually comes down, consumers may see their borrowing costs decrease across various loans such as mortgages, car loans and credit cards, making it cheaper to borrow money. 

Here’s a breakdown of how it works:

Credit cards

Since most credit cards have a variable rate, there’s a direct connection to the Fed’s benchmark. But even though the central bank cut its benchmark interest rate by a full percentage point last year, credit card costs remained elevated.
Card issuers are often slower to respond to Fed rate decreases than to increases, said Greg McBride, Bankrate’s chief financial analyst.
Currently, the average credit card rate is more than 20%, according to Bankrate — near an all-time high.
In the meantime, delinquencies are higher and the share of credit card holders making only minimum payments on their bills recently jumped to a 12-year high, according to a Philadelphia Federal Reserve report.
“That means it is maybe more important than ever to get that high-interest debt under control,” Schulz said.

Mortgage rates

Mortgage rates have risen in recent months, even as the Fed cut rates.
Because 15- and 30-year mortgage rates are fixed and mostly tied to Treasury yields and the economy, they are not falling in step with Fed policy. Since most people have fixed-rate mortgages, their rate won’t change unless they refinance or sell their current home and buy another property. 
“Most mortgage debt is fixed, so existing homeowners are not impacted,” Bankrate’s McBride said. “It just adds to the affordability woes for would-be homebuyers and is keeping home sales on ice.”
The average rate for a 30-year, fixed-rate mortgage is now 7.06%, according to Bankrate.

Auto loans

Auto loan rates are fixed. But these debts are one of the fastest-growing sources of consumer credit outside of mortgage lending. Payments have been getting bigger because car prices are rising, driving outstanding auto loan balances to more than $1.64 trillion.
The average rate on a five-year new car loan is now around 7.47%, according to Bankrate.
“With the Fed signaling that any rate cuts in 2025 will be gradual, affordability challenges are likely to persist for most new vehicle buyers,” said Joseph Yoon, Edmunds’ consumer insights analyst.
“Although further rate cuts in 2025 could provide some relief, the continued upward trend in new vehicle pricing makes it difficult to anticipate significant improvements in affordability for consumers in the new year,” Yoon said. 

Student loans

Federal student loan rates are also fixed, so most borrowers aren’t immediately affected by any Fed moves.
However, undergraduate students who took out direct federal student loans for the 2024-25 academic year are paying 6.53%, up from 5.50% in 2023-24. Interest rates for the upcoming school year will be based in part on the May auction of the 10-year Treasury note.
Private student loans tend to have a variable rate tied to the prime, Treasury bill or another rate index, which means those borrowers are typically paying more in interest. How much more, however, varies with the benchmark.

Savings rates

While the central bank has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.
As a result of the Fed’s string of rate hikes in recent years, top-yielding online savings accounts have offered the best returns in more than a decade and still pay nearly 5%, according to McBride.
“The good thing about the Fed being on the sidelines is that savers are going to be able to enjoy these inflation-beating yields for some time to come,” McBride said.
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CNBC interviewed career experts about their opinions on the “open to work” feature on LinkedIn, and if it helps or hurts job seekers.
Globally, more than 220 million people currently have “open to work” turned on, either privately or publicly, according to LinkedIn.
That’s a 35% increase from last year, the company said, which also reveals trouble in the job market.

Damircudic | E+ | Getty Images

By now, you’ve probably seen the green badges splashed all over LinkedIn, advertising that person is #opentowork.
Whether unemployed and actively seeking a new position, or quiet quitting in their current role, more people are choosing to make their job-seeking status known on the career site.

Globally, more than 220 million people currently have turned on the “open to work” feature, either privately or publicly, according to LinkedIn. That’s a 35% increase from around the same time last year, the company said, which showcases the challenging job market.

Linkedin Open To Work badge
Source: Linkedin

LinkedIn rolled out its “open to work” option in 2020. People can decide if they want to more discreetly signal their status to recruiters only, or to everyone with a public green badge on their profile.
But is it always a smart move? Some recruiters are torn.
“There’s been such a massive debate on LinkedIn about the ‘open to work’ badge, with a mix of employers and recruiters firmly entrenched on both sides,” said Tatiana Becker, founder of NIAH Recruiting.

‘Avoid the green banner’

Debra Boggs, founder and CEO of D&S Executive Career Management, has concerns about the green “open to work” badge or banner for those who make their job seeking status available to all.

“You are bringing the focus to your employment status and away from your unique value in the market and qualifications for the role,” Boggs said.
Meanwhile, Boggs said, “many recruiters and hiring managers feel that it makes a job seeker look desperate, which is not an attractive quality when looking for a stand-out leader to run a function or a business.”

For entry-level and mid-level job seekers, she suggest they use the “open to work” option that only recruiters can see.
“That way, when recruiters are looking for qualified candidates, you are still signaling to them that you are actively searching, but it’s not considered a red flag,” Boggs said.
But for everyone, she said: “Avoid the green banner” that all can see.

Old-fashioned to see the green badge ‘as a red flag’

Yet Becker sees no shame in signaling your job status to the world. “I say: Put the badge on,” she said.
In the past, being a job hopper was “looked down upon,” Becker said. But that changed when millions of people lost their employment during the Covid pandemic through no fault of their own, and later, with the waves of layoffs that followed the over-hiring boom, she said.
“It’s old fashioned and biased to see the ‘open to work’ badge as a red flag,” Becker said.
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Plus, Becker said, why turn down the help? The badge lets companies and recruiters more easily identify who is looking for a job, she said.
Indeed, using the “open to work feature” doubles someone’s chances of getting a recruiter to message them, according to LinkedIn. Those who flash the green badge under the public option can up that likelihood by 40%, the company said.
“I think there are far more desperate practices on LinkedIn,” said Tiffany Dyba, a recruitment consultant.
So where does all this leave you?
“Do what you feel is best for you,” Dyba said. “It sounds trite, but I really don’t think there is a right or wrong to the ‘open to work.'” More