After a long wait, the 2026 Social Security Cost-of-Living Adjustment (COLA) has been officially announced.
This news was highly anticipated all year, and even moreso in recent weeks as a government shutdown delayed it. Now seniors can finally been discussing how they feel about the 2.8 percent increase to their checks.
Here at the National Organization of Retired Americans, we promote the importance of COLAs and advocacy for them. Let’s discuss what this increase will mean for seniors.
Facts About the 2026 Social Security COLA
It’s important to remember that the COLA is not a bonus or a “raise” in the traditional sense. Instead, this adjustment is designed to help keep benefits where they should be in an economy where currency loses value due to inflation.
Based on this, it could be said that the adjustment is more about bringing benefits to their fair level, so seniors get back everything they paid in all those years. But is the COLA high enough? Does the 2.8 percent increase represent a fair amount? It will equate to about an extra $56 per check, depending on your benefit amount.
The Cost-of-Living Adjustment (COLA) is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks changes in prices for things like food, housing, and transportation. Each year, the government compares the average CPI-W from July through September to the same months the year before. If prices go up, benefits increase by that percentage.
However, this formula doesn’t always reflect what seniors actually spend money on. Older adults often face higher healthcare and housing costs, which rise faster than the CPI-W measures. As a result, the COLA may fall short of covering real-life expenses, making it harder for many seniors to keep up with their budgets.
We want your thoughts on this announcement. Is the 2026 Social Security COLA high enough? How will it affect your retirement? Let us know in the comments, then follow us on Facebook and Twitter for more COLA news and other retirement content.
