Social Security Cola 2026: Another modest increase, enough?
Social security officials announced the 2026 Cola will be delayed until this year due to the government shutdown. However, starting in January, Social Security Paychecks will show a cost of living adjustment (cola) of 2.8%. The small bump is due to the drop in prices that have stuck around this year. Also, while the colas of 2026 are higher than the increase of 2,5% in 2025, it is much lower than the Reject-Seming 8.7% Bump given in 2023 when the decrease in energy consumption decreases.
2.8% Cola has been around the average for the last 20 years
The 2.8% bump is slightly higher than the average increase of 2.6% seen over the past 20 years, but it is much smaller than the long-term average. 47 years ago, regular cola accounted for 3.7%.
A modest increase in 2026 may feel insufficient, especially when prices still seem high and medical costs are increasing at a faster rate than other goods and services.
High and low cola is increasing
Since 1975, when colas were introduced, the highest social security cola was 14.3% in 1980, but that was anoma almomaly. The only other times cola was at or above 8% were in 1975 (8%), 1979 (9.9%), 1981 (11.7%), and 2023 (8.7%).
Also, it is interesting to note that there have been three years with 0% growth (2010, 2011, and 2016).
There is a decent increase in cola
It can be seen as a large increase in social security benefits is good news, and a small increase is bad. However, larger paychecks are meant to help retirees keep up with inflation. Also, inflation is not exactly good news for anyone.
Will a 2.8% increase be enough to maintain quality of life?
This year’s collar can help. However, the latest data from the senior citizen league (TSCL), a high-level group, finds that the purchasing power of social security benefits has decreased that 94 percent of the 2.5 people are too low and will make their monthly checks fall behind the money.
Because of the way cola is calculated (see below), social security increases often fail to keep up with the real costs of the highest households.
How much will social security paychecks increase with this cola?
Social security benefits vary greatly depending on when you start benefits and your earnings levels over your working life. However, on average, Spike will improve monthly payments by $ 54, from an average profit of $ 20008 to $ 2,062 per cola.
See the impact of the 2026 cola on your retirement plans
It’s a good idea to keep your retirement plans updated with any changes in your financial situation. You may want to update your Social Security benefit amount and estimate your values in the Boldlin Retirement Planner.
The Social Security Administration often notifies people of their new benefit amount by mail. If you have my social security account, you should be able to view your cola notice online.
How to calculate the cost of living security
The first increase in Social Security benefits was in the 1950s. It took an act of Congress, and profits increased by 77%. Two other acts of Congress in the 1950s brought the total increase to 125% above its original rate by the end of the decade. From 1950 to 1975 the rate was increased by separate acts of Congress nine times.
In 1973 laws were passed that mandated that social security benefits keep pace with inflation, and the first annual automatic increase was in 1975.
Social Security Administration uses the average CPI-W data from July, August, and September of the previous year and compares it to the same period of the current year. A percentage change in two digits is the increase of cola.
How Social Security calculates retirement penalties
As the name suggests, the CPI-W measures the increase in the cost of the types of goods that cities use to buy. The problem with using this Social Security measure is that older retirees spend differently than most workers. Most notably, seniors spend more on health care than the general population.
To make matters worse, health care costs are rising faster than other goods and services. Various measures show that health care costs have increased 3% to 12% each year over the past decade. And seniors spend a larger portion of their income on health care than the average worker.
According to the Live Citizens League, “suppressed growth in social security not only creates ongoing problems for retirement benefits, but also problems with the Medicare budget where cola is not enough to cover a large portion of beneficiaries.”
Other CPI-W methods for calculating the Social Security Cola have been proposed, including something called R-CPI-e for the cost of retirement for older Americans. ” This method of calculating inflation for people over the age of 62 was authorized by the American Act of 1987, but it has never been used to update the social security cola.
How to make sure you have enough money for retirement
Social Security is only designed to cover part of your retirement income. It is almost (but not quite) impossible to survive on social security.
Here are 4 things you should do to make sure you have enough money for retirement, regardless of the 2022 social security increase:
1. Calculate all sources of retirement income
You’ll want to think about how you’ll be withdrawing and/or earning from savings and whether you have a pension, income, or retirement income.
2. Estimate your retirement expenses
How will your income change in retirement?
3. Check for inflation
Ronald Reagan said, “Prices are as violent as a mugger, as intimidating as an armed robber, and as deadly as a thug.” And, it’s true. Inflation will make any money you show. That’s one of the reasons why accurate inflation forecasting and accounting is so important to future financial security.
4. Protect yourself from other dangers
Inflation isn’t the only unknown that can hurt your retirement savings. You also need to plan for longevity, health emergencies, natural disasters, and more.
Build social security income projections into your retirement plan
Sound complicated? You don’t have to be.
The Boldn Planner is an easy-to-use but versatile tool for Speevels that will tell you if you have enough money for retirement. You can set different levels of spending and income for different stages of retirement.
You can even set your own depreciation rates – one for general spending, another for housing, and medical expenses can also be specified separately. Try different amounts for each category and see how much it affects your retirement life.
FAQ: Social Security Cola 2026
A: The official 2026 living cost adjustment announced by the social security administration in October is 2.8%.
A: Yes. The 2.8% increase in Social Security benefits by 2026 is modest, lower than recent cola mountains, boosted by high inflation.
A: Even a modest increase can affect your monthly budget. If your expenses continue to rise faster than your cola, your purchasing power may decrease. The 2026 increase translates to an average of $54 per month.
A: Inflation has reduced significantly compared to 2022 and 2023, resulting in less change in costs. The cola formula is based on CLITE CPI data for CLITE.
A: Yes. The annual adjustment applies to retirees, SSDI recipients, and others who receive social security benefits. It helps to keep purchasing power as the cost of living rises.
A: Medicare Part B Premium often increases from year to year. If they go up too much, they can wipe out part or all of your cola lift – especially for retirees with higher incomes according to Irmaa Surcharges.
A: Since 1975 when colas were introduced, the highest social security cola was 14.3% in 1980, but that was anoma almomaly. The only other times cola was at or above 8% were in 1975 (8%), 1979 (9.9%), 1981 (11.7%), and 2023 (8.7%). Also, it is interesting to note that there have been three years with 0% growth (2010, 2011, and 2016).
A: Your monthly social security payment increases by a percentage point each year in January. However, the actual impact depends on how inflation, Medicare premiums, and tax limitations interact with your adjusted earnings.
Updated on October 30, 2025
Post Social Security Cola 2026: Another modest increase, enough? appeared for the first time with courage.
