Investing

The Social Security cost-of-living adjustment may be 2.7% to 2.8% in 2026, according to new estimates based on government inflation data released Thursday.
If that increase goes into effect, it will add about $54 to the average retirement benefit.
Retirees worry that inflation and higher prices may surpass any increase to their monthly checks.

Customers shop for produce at an H-E-B grocery store on Feb. 12, 2025 in Austin, Texas.
Brandon Bell | Getty Images

Millions of Social Security beneficiaries may see a 2.7% to 2.8% increase to their monthly checks in 2026, according to new estimates based on the latest government inflation data.
A 2.8% Social Security cost-of-living adjustment may go into effect next year, estimates Mary Johnson, an independent Social Security and Medicare policy analyst. That increase would push the average retirement benefit up by about $54.70 per month, she said.

Separately, the Senior Citizens League estimates the 2026 COLA may be 2.7%, pushing the average monthly retirement benefit up $54 per month, according to the nonpartisan senior group.
The average monthly retirement benefit is $1,955 for retired workers and their families, including spouses and children, according to August Social Security Administration data.
Those estimated increases would be up from the 2.5% boost to benefits that went into effect in 2025. The COLA has averaged 2.6% over the past 20 years, according to the Senior Citizens League.
More from Personal Finance:Inflation is retirees’ ‘greatest enemy,’ says inventor of 4% ruleThere’s still time for ‘super catch-up’ 401(k) contributions for 2025Fewer people think retirement will ‘take a miracle,’ report finds
The COLA projections are based on new consumer price index data for the month of August that was released Thursday.

The official Social Security cost-of-living adjustment will include one more month of inflation data.
The COLA for the next year is typically announced by the Social Security Administration in October. It is calculated based on third-quarter data using a subset of the consumer price index, known as the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.
There is a very high chance that the Social Security COLA will be 2.8% once September data is included, according to Johnson. In order for the COLA to land at 2.7%, there would have to be “virtually no inflation growth at all in September,” she said.

Retirees worry tariffs will hurt their buying power

While new estimates point to a higher COLA than this year’s 2.5% boost to benefits, the projections are lower than some increases Social Security beneficiaries have seen in recent years. That includes a 3.2% cost-of-living adjustment for 2024, as well as record-high increases Social Security beneficiaries saw in 2022 and 2023, when the annual COLAs were 5.9% and 8.7%, respectively.
Those record increases came as inflation jumped following the onset of the Covid pandemic.
Retirees worry a similar shock could prompt the rate of inflation to spike again.
Half of retirees surveyed say they are “terrified” about the potential impact tariffs may have on their retirement income or retirement savings, according to an August Nationwide Retirement Institute poll.
Around two-thirds of individuals who receive Social Security benefits think at least somewhat that tariffs will prompt inflation beyond what annual cost-of-living adjustments can cover, Nationwide found.

More than half of current Social Security beneficiaries in the survey said they have already had to reduce their discretionary spending as increases to their expenses have outpaced the growth of their benefits.
If a retiree sees a $54 cost-of-living increase to their monthly Social Security checks but other essential expenses like rent go up, the inflation adjustment doesn’t go as far, said Tina Ambrozy, head of strategic customer solutions at Nationwide.
Medicare costs are also poised to increase next year. The standard monthly Part B premium may go up $21.50 per month, to $206.50 per month from $185, according to Medicare trustees estimates. That would be “very close” to the highest premium jump in the program’s history, which was $21.60 per month in 2022, according to Johnson.
Medicare Part D premiums for prescription drug plans may increase by as much as $50 per month in 2026, Johnson said.

How higher inflation affects retirees

While the pace of inflation has come down from the 2021 and 2022 pandemic highs, seniors are still seeing higher prices on grocery store shelves and elsewhere.
Retirees are “particularly sensitive to inflation,” said Jean-Pierre Aubry, associate director of retirement plans and finance at the Center for Retirement Research at Boston College — though how it affects them individually depends on their personal circumstances.

For those who rely on fixed income investments like bonds, inflation can be “quite painful” if the returns and coupon payments do not keep pace with a rising cost of living, Aubry said.
However, for seniors who still have mortgage debt, inflation can help by making the real value of those outstanding balances go down, he said.
Notably, because Social Security cost-of-living adjustments are put into effect once a year, those increases may come after inflation has already risen.
If retirees can smooth out their spending by trying to avoid sharp ups and downs in their outlays, that lag can be less of an issue, Aubry said.
While 74% of respondents to Nationwide’s survey said they think they can manage Social Security benefits on their own, just one-third are confident in their knowledge of the program.
Working with a financial advisor can help retirees address those knowledge gaps and better manage their benefits and other assets, Ambrozy said.

Don’t miss these insights from CNBC PRO More

The consumer price index rose 2.9% on an annual basis in August 2025, the fastest pace of inflation since January.
Tariffs levied by President Donald Trump seem to be putting upward pressure on inflation for goods like clothing and furniture, economists said.
The Federal Reserve is expected to cut interest rates next week to help support a faltering job market. That risks keeping inflation elevated.

Shoppers browse shoes at a store in Los Angeles on Aug. 28, 2025.
Bloomberg | Bloomberg | Getty Images

Inflation picked up in August amid higher prices for staples like food and electricity, while tariffs put upward pressure on prices for physical goods like clothing and household furniture, economists said.
The consumer price index, a key inflation gauge, rose 2.9% in August from a year earlier, the Bureau of Labor Statistics reported Thursday.

That’s an increase from 2.7% in July and the fastest annual pace of inflation since January.
“Inflation is uncomfortably high and it’s accelerating,” said Mark Zandi, chief economist at Moody’s. “I think we should expect a further acceleration in inflation over the next six to 12 months.”

Tariffs contribute to rising goods prices, economists say

The CPI tracks how quickly prices rise or fall for a basket of consumer goods and services, from haircuts to coffee and concert tickets.
Inflation is reigniting largely due to reinflation for consumer goods, said Sarah House, senior economist at Wells Fargo Economics.
Prices for “core” commodities — which exclude food and energy — rose 1.5% in August from a year earlier, the fastest annual pace since May 2023.

Excluding the pandemic and its aftermath, core commodities haven’t risen that quickly since 2012.

Tariff policies pursued by President Donald Trump appear to be the main contributor to rising inflation for goods, she said.
U.S. entities that import goods from overseas pay the import duties. Companies will ultimately pass at least some of those additional taxes on to consumers, though the process will take many months due to various business strategies to try to blunt the impact, economists said.
“The fact that we’re seeing some of the largest tariffs since the 1940s I think is certainly a part of the pickup in goods prices,” House said.
More from Personal Finance:Trump administration to warn families about student debt risksACA cliff may mean ‘huge premium shock’ in 2026Treasury released early list for ‘no tax on tips’ deduction
The tariff impact has been most noticeable in categories like household furnishings, appliances, apparel and recreational goods, economists said.
Apparel prices, for example, have risen by a relatively muted 0.2% over the past year, according to the CPI data. However, their annual inflation rate has jumped sharply in recent months, having climbed for three consecutive months from a recent low of -0.9% in May.
A large share of clothing imported to the U.S. comes from Asian nations where tariffs have risen considerably, Zandi said.
“Tariffs are all over the apparel prices,” Zandi said. “They’ve risen quite strongly the last few months.”

Trump invoked the International Emergency Economic Powers Act to impose many of his sweeping tariffs on trade partners. The Supreme Court will consider the legality of that maneuver during oral arguments in November.
Even if the Trump administration fails in court, there are alternative pathways it can pursue to keep many tariffs in place, economists said.

‘Sticker shock’ for some groceries

Physical goods aren’t the only contributor to rising inflation, however, economists said.
Grocery prices rose by 2.7% in August from a year earlier, up from 2.2% in July and their fastest annual pace since August 2023, according to the CPI data.
Tariffs may be playing a role for some foods, as with coffee (much of which is sourced from nations like Brazil and Vietnam, which have high tariff rates) and those for fruits and vegetables coming from Mexico, for example, Zandi said.

Beef, for example, has also caused “sticker shock” for consumers at the meat counter, due to short supply and steady demand, according to a recent report by the Wells Fargo Agri-Food Institute.
“Fruits and vegetables, which climbed the most since January 2020, and meats, poultry, fish, and eggs were the food products where prices rose the most,” Gargi Chaudhuri, chief investment and portfolio strategist for the Americas at BlackRock, wrote Thursday. “Many of these food products were affected by tariffs as the U.S. is a net food importer.”

Services inflation seems ‘stuck’

Meanwhile, disinflation among services has stalled, meaning services likely won’t offer much of a counterbalance against rising goods inflation, House said.
“It’s no longer slowing, is the near-term issue,” House said. “We’re going to be stuck here for a few months at least, we think.”
Electricity prices, for example, are up more than 6% since August 2024, according to CPI data.
That’s due largely to strong demand created by the “explosive growth” of data centers, which use ample electricity, Zandi said.

Travel prices have also picked up. Airline fares increased almost 6% from July to August (up from 4% the prior month), while lodging like hotels and motels rose almost 3%, according to the CPI data.
The pickup is likely due to consumer demand, House said. Consumers concerned about the economy and federal job cuts in the first half of the year pulled back on travel purchases out of caution, she said.
However, there are some downward inflationary pressures, too, economists said.

The labor market has cooled significantly, which puts downward pressure on wage growth as workers lose their bargaining power, for example, economists said. Businesses may therefore feel less need to increase prices for consumers if their labor costs aren’t rising quickly.
The Federal Reserve is expected to cut interest rates at its upcoming policy meeting next week to help prop up the faltering job market, but that risks keeping inflation elevated, economists said.
“They have no good choices here,” Zandi said. “The best course is to cut rates to keep the economy from falling apart, but risks inflation being more entrenched.”

Don’t miss these insights from CNBC PRO More

The U.S. Department of Education may soon start sharing information with students on “the benefits and risks” of borrowing for a college education.
Consumer advocates say the financial literacy effort could distract from the urgent issues facing millions of current borrowers.

The White House is seen in Washington, D.C.on September 09, 2025.
Yasin Ozturk | Anadolu | Getty Images

The U.S. Department of Education may soon begin sharing information with students and families on “the benefits and risks” of federal student loans, the Trump administration recently announced.
The department’s Office of the Ombudsman will take “a proactive approach to improve financial literacy,” according to a Sept. 5 press release, so that students “are better equipped to make careful borrowing decisions.”

The agency said its effort comes as outstanding federal student debt nears $1.7 trillion, and “loan defaults and delinquencies remain at record highs.”
Elaine Rubin, director of corporate communications at Edvisors, said that “addressing financial literacy and college costs in the process of financial aid is never a bad thing.”
More from Personal Finance:How to get a better mortgage rate as the 30-year fixed nears 1-year lowHere’s how to handle your student loans after losing a jobGold is on a record run — here’s how to invest
Historically, the Ombudsman’s office dealt primarily with complaints from student loan borrowers. However, it’s unclear what the fate of that work will be after the Education Department’s sweeping layoffs in March.
Experts say the staff cuts also raise questions about how the Trump administration will be able to launch this new borrowing education effort.

“The real question is whether there’s anybody left in the Ombudsman’s office to do any of this,” said higher education expert Mark Kantrowitz.

Effort amid high delinquency rates

The U.S. Department of Education headquarters is seen on March 06, 2025 in Washington, DC. 
Chip Somodevilla | Getty Images News | Getty Images

The Trump administration said more financial guidance is needed for borrowers amid the student loan portfolio’s “sobering statistics.”
More than 42 million Americans carry federal student loan debt. As of June, over 6 million borrowers were delinquent, and more than 5 million were in default, the Education Department said.
“By providing clearer guidance and support at the front end of the college journey, we believe students will make more informed decisions that lead to lower debt burdens, stronger repayment outcomes, and greater satisfaction with their educational investment,” said Undersecretary of Education Nicholas Kent, in a statement.

More pressing problems, consumer advocates say

Consumer advocates said the Education Department’s efforts could pull resources needed to address more pressing problems, including fixes for millions of borrowers who are unable to access affordable repayment options.
“By shifting focus to borrower education, it diverts attention from the urgent need to resolve consumer complaints and systemic servicing failures,” said Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York.

As of the end of July, the Education Department had a backlog of more than 1.3 million applications from borrowers trying to get into an income-driven repayment, or IDR, plan, recent court documents show.
The pileup of applications is due, in part, to the end of President Joe Biden’s SAVE, or Saving on a Valuable Education, plan. That program was meant to significantly lower millions of borrowers’ bills but was met with Republican-led legal challenges and eventually repealed this summer in President Donald Trump’s “big beautiful bill.”
Many student loan borrowers now can’t afford the repayment plan options available to them, consumer advocates said. The monthly payments on SAVE were much lower than those offered under other plans, and recent legislation further narrows borrowers repayment choices.
“There is no amount of financial literacy that will solve the more than 1.3 million IDR application backlog or give answers to borrowers who have to wait on hold for several hours to find out the status of their loans,” said Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center.

Don’t miss these insights from CNBC PRO More

Americans are feeling more optimistic about retirement, thanks to two consecutive years of returns exceeding 20% from the S&P 500.
Yet the recent unexpected spike in inflation has left lasting scars for savers who worry their money may not go as far, according to a new survey from Natixis Investment Managers.
Here’s when Americans expect to retire, and what they could do more to better prepare.

Helovi | E+ | Getty Images

Americans are feeling more optimistic when it comes to retirement.
Just 21% Americans surveyed by Natixis Investment Managers said it will “take a miracle” to have a secure retirement, down almost half from 41% who said the same in 2021.

Part of that confidence stems from the S&P 500 index’s two consecutive years of returns exceeding 20% — half of survey respondents said those results made investing look easy, according to Natixis.
Yet 69% of the 750 Americans surveyed earlier this year said they still worry about instability and the potential financial impact.
Among their top retirement concerns are the possibility they may live longer than expected, the worry their Social Security benefits may be cut and the fear that high inflation could erode their retirement savings.

The recent, sudden big swing in inflation prompted people to save less, to worry their savings won’t go as far in the future and to feel that their investment gains have been whittled down, according to Dave Goodsell, executive director of the Natixis Center for Investor Insight.
“When they look at how they’re feeling about retirement, they feel good overall, but there are certain things that are making them uncomfortable,” Goodsell said.

The U.S. landed at No. 21 on Natixis’ new ranking of best countries for retirees, moving up one slot from the previous year. The ranking measures countries based on finances, wellbeing, health and quality of life. While strong finances and health helped bolster the country’s overall 70% score, that was offset by factors including income inequality, a slight increase in unemployment and a decline in happiness.

Americans expect to retire at 64, yet face a savings gap

How investors are preparing — and what they should do

The top move Americans are making to prepare for retirement — with 64% — is saving more and cutting expenses, according to Natixis’ survey.
That is followed by 47% who are creating long-term financial plans, 34% who are estimating future retirement costs and 32% who are seeking professional financial advice.
To better prepare, Americans ought to make getting professional help a higher priority, according to Goodsell.
A financial advisor can help sort out the “super complicated mathematical equation” that retirement planning requires, including how much savings is needed and what inflation may be in the future, Goodsell said.
“When you ask retirees what the number one thing [was] that helped them get to security, it was getting professional advice,” Goodsell said.

While many Americans strive for a $1 million nest egg, that may only yield about $40,000 annually if they withdraw funds based on the 4% rule in retirement, Goodsell said.
The 4% rule traditionally involves withdrawing 4% of a portfolio in the first year of retirement and then adjusting the rate in subsequent years for inflation.
Generally, retirement savers will want to strive for a higher balance in order to have more money to live on in their golden years, according to Goodsell.
Some surveys point to an amount aspiring retirees think they need to have saved.
To get a more accurate gauge of your retirement savings goals, start with the amount of money you anticipate needing your first year of retirement, Bill Bengen, the financial planner who invented the 4% rule, recently told CNBC.com.
Then, take 20 times that first year withdrawal amount to get a rough savings goal estimate, he said. More

CoreWeave Inc. signage in Times Square in New York, US, on Friday, May 9, 2025.
Yuki Iwamura | Bloomberg | Getty Images

CoreWeave shares jumped Tuesday on news that the cloud infrastructure company, which was one of the hottest IPOs of the year, launched a venture fund to invest in artificial intelligence startups.
CoreWeave, considered the largest publicly traded ‘neocloud’ name, offers cloud computing services specifically for AI workloads, such as providing Nvidia GPUs and high-performance storage to companies.

Its newly announced “CoreWeave Ventures” fund will offer founders an array of capital investment models, provide access to the CoreWeave cloud platform, and give insights on product and go-to-market strategies based on CoreWeave’s existing partnerships, the company said in a press release.
The shares gained 6% in premarket trading.

Stock chart icon

CoreWeave this year

“Our aim with CoreWeave Ventures is to give other audacious, like-minded founders the support they need to drive technical advancements and bring to market the next class of innovation,” Brannin McBee, CoreWeave co-founder and chief development officer, said in the release.
CoreWeave, which itself is backed by Nvidia, is the latest example of a tech giant turning to the growing world of startups in an effort to gain more exposure to early-stage AI innovation. AI startups in the first half of the year alone raised $104.3 billion in the U.S., nearly matching all of 2024.
The company went public at $40 a share in late March. The shares then rallied to a high of $187 a share in June as retail traders clamored for a new AI name besides Nvidia to invest in, but since pulled back and closed Monday at $93.55 a share.
CoreWeave shares got a lift earlier Tuesday after neocloud competitor Nebius closed a five-year deal with Microsoft worth $19.4 billion to supply computing power to the hyperscaler, suggesting demand for AI infrastructure remains strong. More

The average rate on the 30-year fixed mortgage notched the biggest one-day drop in more than a year on Friday. 
Higher mortgage rates have helped keep many homebuyers on the sidelines. 
Now rates are finally coming down and some would-be buyers may be able to lock in even better deals with a few key money moves.

The average rate on the 30-year fixed mortgage notched its biggest one-day drop in more than a year on Friday. 
Although mortgage rates are now at their lowest level since October, the average rate for a 30-year, fixed-rate mortgage is still just around 6.29%, according to Mortgage News Daily — a big leap from the under 3% levels near the start of the pandemic.

But there are ways to get even better terms on a home loan, experts say.

Where mortgage rates stand

More signs point to an interest rate cut when the Federal Reserve meets on Sept. 17, which may offer a little more relief for would-be homebuyers.

Even though 15- and 30-year mortgage rates are fixed, cuts in the Fed’s target interest rate could provide some downward pressure, according to Lawrence Yun, chief economist at the National Association of Realtors.
However, “even in anticipation rate cuts, consumers should view 6% as the new normal through the early part of next year,” Yun said.
“Expecting 4% or 5% — I don’t think it will happen,” he added.

Three ways to get a lower mortgage rate

Regardless of where mortgage rates are heading, potential buyers have some control over the rates they will pay.
Here are a few key money moves to help secure the best terms on a home loan:
1. Improve your credit score
Your creditworthiness will ultimately determine what rate you can qualify for. “If you have a higher FICO score, you are going to get a better rate,” said Scott Lindner, national sales director, real estate & secured lending at TD Bank.
FICO scores, the most popular scoring model, range from 300 to 850. A “good” score generally is above 670, a “very good” score is over 740 and anything above 800 is considered “exceptional.”
For example, borrowers with a credit score between 780 and 850 could lock in a 30-year fixed mortgage rate of 6.19%, but it jumps to 6.39% for credit scores between 700 and 739. On a $350,000 loan, paying the higher rate adds up to an extra $13,000, according to data from LendingTree.

The best way to improve your credit score comes down to paying your bills on time every month, even if it is making the minimum payment due.
As a general rule, it’s also essential to keep revolving debt below 30% of available credit to limit the effect that high balances can have. 
Alternatively, “asking your credit card issuer for a higher credit limit can boost your score,” said Matt Schulz, LendingTree’s chief credit analyst. “That higher limit can help lower your utilization rate, but only if you don’t see that newly available credit as an excuse to spend.”
You may also be able to improve your credit score simply by fixing errors on your credit report, Schulz said. “Even a single late payment on your credit report can knock 50 points or more off of your credit score, so if there’s one listed wrongly on your report, you need to get it fixed.”
The length of your credit history is another important factor: A longer credit history helps raise your score because it provides lenders with a better understanding of how you manage your debt.
1. Boost your down payment
Additionally, if you put more money down on the home at the outset, you may be able to secure a better rate from lenders, according to Lindner.
Borrowers who put 20% down “would definitely get a lower mortgage rate,” Yun also said, “because there is more skin in the game and lenders are more willing to lend.”
More from Personal Finance:Why coffee prices are so highHow to invest in gold amid the metal’s record runRecord numbers of retirement savers are now 401(k) or IRA millionaires
Yet, for many Americans, putting 20% down on a house “is just not realistic,” according to Schulz.
In fact, the average down payment was 18% for all home buyers in 2024, and just 9% for first-time home buyers, according to the National Association of Realtors.
“However, if you can do it, the savings can be massive,” Schulz said. Not only would putting 20% down save you tens of thousands of dollars in interest over the life of the loan, but it could also save you thousands of dollars a year by avoiding private mortgage insurance, Schulz added. “It’s a really big deal.”
3. Think beyond a 30-year fixed
Finally, “don’t put yourself in a position where you think a 30-year mortgage is your only option,” Lindner said. In fact, more buyers are considering adjustable-rate mortgages, or ARMs, which offer lower initial rates than fixed-rate loans. 
An ARM could shave as much as half a point off your rate, Lindner said. Currently, the rate for a 7/6 ARM is 5.59%, according to Mortgage News Daily.
“A seven-year ARM gives people the chance to take advantage of a lower rate today,” Lindner said — and “if you think rates will go down, you can always refinance in the future.”

For that reason, ARMs have been growing in popularity, according to Yun. About 90% of consumers get a 30-year fixed, he said, but tapping an ARM is a good way to get into the market.
Still, whether this is the right option also depends on your time horizon, Yun added. Generally, ARMs make the most sense for buyers who are looking at a short timeline, particularly for “people in the late 20s or 30s, who may trade up,” he said.
Otherwise, you risk ending up with an interest rate down the road that is substantially higher than a fixed-rate loan.
Subscribe to CNBC on YouTube. More

The $1.787 billion Powerball jackpot has two winners from tickets purchased in Texas and Missouri — and one could face a bigger tax bill.
The winners can pick between two pretax options: a lump sum of $410.3 million or an annuitized prize of $893.5 million.
However, the Missouri ticket holder could pay millions more in taxes.

Scott Olson | Getty

There are two big winners for the $1.787 billion Powerball jackpot — and one could face a bigger tax bill.
Winning tickets sold in Missouri and Texas matched all six numbers from Saturday night’s drawing, and those individuals will split the second-largest lottery jackpot, according to Powerball.

Each ticket holder can pick between two pretax options: a lump sum of $410.3 million or an annuitized prize of $893.5 million. The annuity consists of one upfront payment, followed by 29 annual payments that increase by 5% each year.   
More from Personal Finance:What to know about putting student loan payments on pauseHow to invest in gold amid the metal’s record runTrump raised the SALT deduction limit to $40,000 for 2025 — how to maximize it
“Virtually everybody who wins the lottery picks the lump sum distribution,” Andrew Stoltmann, a Chicago-based lawyer who has represented several lottery winners, previously told CNBC. “And I think that’s a mistake.”
In some cases, the annuity is a better option because “the typical lottery winner doesn’t have the infrastructure in place to manage such a large sum so quickly,” he said.
But either way, the winners will face a hefty tax bill. Here is what they can expect.

Roughly $98.5 million withheld for the IRS

Both Powerball jackpot winners will face an automatic federal tax withholding. For prizes over $5,000, the IRS requires a mandatory 24% withholding.
If the winners choose the $410.3 million lump sum payment, the 24% federal withholding reduces their prize by roughly $98.5 million.

How the federal tax brackets work

The next Powerball jackpot winner will easily land in the 37% federal income tax bracket, regardless of whether they choose the lump sum or yearly payments.For 2025, the 37% rate applies to individuals with taxable income exceeding $626,350 and married couples filing jointly with taxable income of $751,600 or more for 2025.
You calculate taxable income by subtracting the greater of the standard or itemized deductions from your adjusted gross income.

But the 37% rate doesn’t apply to all of your taxable income.
For 2025, single filers pay $188,769.75 plus 37% of the amount over $626,350. Meanwhile, joint filers pay $202,154.50 plus 37% of the amount over $751,600.
The jackpot winners’ remaining tax bill after the 24% federal withholding depends on several factors, but could easily represent millions more.
President Donald Trump’s “big beautiful bill” raised the standard deduction, among other breaks, which could reduce taxable income for many filers in 2025.

Missouri winner could owe millions in state taxes

On top of federal taxes, the Missouri ticket holder could also owe millions in state income taxes.
In addition to the 24% federal withholding, the Missouri Lottery is required to withhold 4% for state income taxes for prizes over $600. That could reduce winnings by about $16.4 million if the winner chooses the lump sum. But the bill could be higher since Missouri’s top income tax rate is 4.7% for 2025.
Meanwhile, Texas does not tax lottery winnings, which means that ticket holder could pay millions less.
Powerball isn’t the only chance to win big. The jackpot for Tuesday night’s Mega Millions drawing now stands at an estimated $358 million. The chance of hitting the jackpot in that game is roughly 1 in 290.4 million. More

Your monthly student loan bills may seem more daunting amid a slowing job market.
CNBC spoke to experts about to do with your student loans if you’re unemployed or struggling to find a better job.

Srdjanns74 | Istock | Getty Images

If you’ve recently lost your job or are struggling to find a new one, your student loans are probably causing you more stress than usual.
The job market is flashing warning signs, with the U.S. economy adding just 22,000 positions in August, which was below expectations, according to a Bureau of Labor Statistics report on Sept. 5. At the same time, the unemployment rate ticked up to 4.3%, its highest level in almost four years.

“The slowdown in job creation might make some recent college graduates and borrowers worried,” said higher education expert Mark Kantrowitz.
More than 40 million Americans hold student loans, and the total outstanding debt exceeds $1.6 trillion.
CNBC spoke to experts about to do with your student loans if you’re unemployed or unable to find a better job at the moment.

Try getting a lower monthly payment

You may be able to pause bills

Borrowers who’ve been laid off may also be eligible for an Unemployment Deferment. Under that option, the Education Department often allows you to pause your payments if you’re receiving unemployment benefits or looking for and unable to find full-time employment, among other requirements. (Some student loans will still accrue interest during the payment pause, while others will not.)
There’s also the Economic Hardship Deferment, for those who may be receiving public assistance or earning below a certain income level. The number of borrowers in an Economic Hardship Deferment doubled from 50,000 in the third quarter of 2024 to 100,000 in the third quarter of 2025, Kantrowitz estimated. Those signed up for the unemployment deferment rose to 180,000 from 140,000 over that period.
There is usually a three-year lifetime limit for the unemployment deferment and economic hardship deferment, he said.
Recent legislation will do away with both the Unemployment Deferment and Economic Hardship Deferment for those who take out student loans after July 1, 2027. But current borrowers will maintain access to the relief options.

If you don’t qualify for either of those deferments, more student loan borrowers are eligible for a general forbearance.
Whenever a borrower applies for a period of nonpayment, they should find out if interest will accrue on their debt in the meantime. If it does, they’ll have a larger balance when their payments resume. Making payments during the deferment or forbearance to at least cover the loan interest on your debt can avoid that outcome, Kantrowitz said.
Those with private student loans may find they have fewer options after a layoff. However, experts recommend explaining to your lender that you’ve lost your job and asking what help might be available. More