As millions of older Americans count on Social Security benefits, the 2026 Cost-of-Living Adjustment (COLA) offers both small relief and real worry. While the expected bump in monthly checks is welcome, it probably isn’t big enough to ease all the pressure seniors face.
The COLA Calculation: What to Expect in 2026
Every year, the Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to set the COLA. This year, forecasts now point to a 2.7% rise, which is just a tick above earlier projections. The goal is to help retirees stretch their dollars a little further, especially as prices for everyday goods keep climbing.
Seniors’ Frustration: The Real Cost of Living
A survey from The Senior Citizens League highlights a tougher story. Around 21.8 million older Americans live on Social Security alone, and eight in ten say the way we measure inflation doesn’t match what they see at the grocery store or the pharmacy. They feel the COLA fails to cover rising bills, such as housing, medicine, and utility costs.
Why Seniors Feel Stretched: The Story Behind the Stats
A study from The Senior Citizens League paints a bleaker picture. More than 21.8 million seniors rely solely on Social Security, and 80% say the inflation figures don’t match the costs they face. Medical bills, housing, and groceries keep going up, while the COLA feels several steps behind. Many tell us they are still falling behind, not getting ahead.
Key Insights for Social Security Recipients
- The 2026 cost-of-living adjustment (COLA) is expected to be 2.7%.
- About 74 million people receive Social Security payments, so most seniors will see this change.
- Many older Americans are pushing for a better way to measure inflation.
- The Social Security Administration decides the COLA using inflation data collected in the third quarter of the year.
What This Means for You
Even a 2.7% increase is smaller than the jump in many everyday expenses seniors must pay, like groceries and healthcare. Take a look at your budget soon and think about what bills will come in the next year. You may also benefit from finding part-time work, starting a small side business, or tapping into family members for help. Social Security feels steady, but side income creates extra peace of mind.