4 Actions for Retirement You Should Consider This Year

It’s still somewhat premature to determine what 2025 will be like. Will it improve, decline, or simply continue as is? According to a January 2025 Gallup survey, 41% of participants believe conditions will improve, while 24% think they will worsen.

If you are among the numerous individuals who feel anxious (or are constantly preoccupied) about your financial circumstances, your financial planner in Fresno CA understands that there are steps you can take to regain control starting now — by implementing these 4 retirement strategies to adopt this year.

Claim Your Social Security

By the year 2025, nearly 69 million Americans are expected to receive a monthly Social Security payment. (You can find the 2025 Social Security payment schedule here along with the March Social Security payment schedule).

To receive the complete benefits you have earned from your work history, it is necessary to wait until you reach your full retirement age (FRA). Your FRA is determined by the year you were born. For individuals born in 1958, the full retirement age is 66 years and 8 months. For those born after 1960, the FRA is set at 67.

Increase your savings

The earnings you receive from your savings deposits might see a slight reduction if the Federal Reserve decides to lower interest rates once more. While they have decreased from their peak in the past two decades, the top high-yield savings accounts and CDs still offer an interest rate of 4% to 5% on your deposited funds. In fact, numerous high-yield savings accounts are maintaining rates of approximately 4.25% annual percentage yields (APYs).

Similar to high-yield savings accounts, certain MMAs are providing rates exceeding 4%, with some even reaching APYs of up to 4.5%. This translates to extra funds for you to enjoy during your retirement years.

401(k)s

The standard IRA contribution limit will remain at $7,000 in 2025, while the catch-up contribution limit for individuals aged 50 and above will also remain at $1,000 for the same year. Nevertheless, the income thresholds for assessing eligibility have been raised as detailed below:

For individual taxpayers who are enrolled in a workplace retirement program, the income range for IRA deduction eligibility will be between $79,000 and $89,000.

The cap for SIMPLE retirement accounts has been raised from $16,000 to $16,500.

Understand Your Taxes

In 2025, the IRS implemented several modifications and updates to the standard deductions, tax brackets, and earned income tax credits, among other things. While not all of these adjustments will affect your personal circumstances, it’s beneficial to be aware that if you’re considering a change, such as marriage or divorce, these updates could have an effect on your financial situation.

Federal estate tax rate: Due to the elevated exemption for the year 2025, a minimal fraction of estates will incur federal estate tax. Nonetheless, those estates with a value exceeding $1 million (or $14,990,000 for individuals and $28,980,000 for married couples combined) will face a tax rate of 40%.

Conclusion

We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to see how we can help you Retire ”Your Way!”

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Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.

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