Social Security Recipients Get 2.8% Cost-of-Living Boost in 2026/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Social Security recipients will receive a 2.8% cost-of-living adjustment in 2026, averaging $56 more per month. While the increase reflects slowing inflation, many seniors say it’s not enough to cover rising living costs. The announcement comes amid broader concerns about the program’s solvency and federal agency turmoil.
Social Security 2026 COLA Quick Looks
- New Adjustment: A 2.8% cost-of-living increase was announced for 2026, affecting nearly 71 million Social Security recipients.
- Monthly Impact: The average retiree will receive roughly $56 more per month.
- Effective Dates: Supplemental Security Income (SSI) recipients will see the increase on Dec. 31, 2025; other beneficiaries will receive it in January 2026.
- Context: This marks the third consecutive year of COLA increases due to inflation, though this year’s rise is smaller than 2023’s historic 8.7% hike.
- Economic Reality: Seniors say the increase does little to combat rising costs in rent, insurance, and groceries.
- Public Sentiment: Only 22% of older Americans feel the adjustment is enough to meet current expenses.
- SSA Response: Officials say the adjustment reflects “today’s economic realities” and provides a foundation of security.
- Agency Turmoil: The SSA has seen internal disruption, job cuts, and public messaging missteps under the Trump administration.
- Future Funding Risk: Without Congressional action, the Social Security trust fund may be unable to pay full benefits by 2034.
- Policy Shifts: Both the Biden and Trump administrations have implemented changes impacting benefits, taxes, and program solvency.
Social Security Recipients Get 2.8% Cost-of-Living Boost in 2026: Deep Look
The Social Security Administration (SSA) announced Friday that recipients will receive a 2.8% cost-of-living adjustment (COLA) in 2026, offering an average monthly increase of more than $56 to retirees. The adjustment impacts nearly 71 million Americans and is set to take effect in January. SSI beneficiaries will begin receiving their increases on December 31, 2025.
This year’s COLA marks a continued response to persistent inflation. It follows a 2.5% increase in 2025 and a 3.2% boost in 2024. In 2023, beneficiaries saw an unusually high 8.7% raise due to record-setting inflation levels. The more modest 2026 increase signals inflation has slowed, but many older Americans argue the adjustment is still insufficient to meet everyday expenses.
Linda Deas, 80, of Florence, South Carolina, is among those who say the increase does not match the rising cost of living. A retired information systems professional, Deas noted her rent has increased by $400 since 2022, and essential expenses like groceries and insurance continue to climb.
“You walk into the supermarket, and everything is more expensive,” she said. “This COLA just doesn’t keep up.”
Her experience aligns with AARP polling, which shows that 77% of Americans over 50 believe a 2.8% raise won’t keep pace with rising prices. This sentiment crosses political lines and reflects a shared concern about affordability.
According to the MIT Living Wage Calculator, an individual in Florence needs over $10,000 annually for housing, more than $3,000 for medical care, and nearly $4,000 for food. These costs far outpace the roughly $672 yearly increase that most retirees will see from the COLA.
AARP CEO Myechia Minter-Jordan called the adjustment “a lifeline of independence,” but acknowledged it doesn’t erase the financial strain many seniors face. SSA Commissioner Frank Bisignano said the agency remains committed to adjusting benefits based on “today’s economic realities.”
Still, retirement policy experts warn the COLA, while helpful, won’t resolve deeper financial challenges. Emerson Sprick, from the Bipartisan Policy Center, said the increase “can’t solve all the shortcomings” of the program or broader retirement security issues.
Meanwhile, the Social Security Administration itself is dealing with challenges. A wave of staff layoffs—prompted by the Trump administration’s efforts to shrink the federal workforce—has disrupted operations. Missteps in public messaging have also fueled confusion. Treasury Secretary Scott Bessent had to clarify that a new savings program for children wasn’t intended to privatize Social Security after his earlier comments sparked backlash.
Commissioner Bisignano also had to walk back speculation about raising the retirement age. While he initially said “everything’s being considered,” he later clarified that raising the age is not currently under discussion by the administration.
Despite the COLA increase, the program’s long-term health remains a pressing concern. According to the latest Social Security and Medicare trustees’ report, the trust funds are projected to run short in 2034. At that point, the program would only be able to cover 81% of scheduled benefits.
Reform proposals are being discussed but none have yet passed. The last significant reform occurred over 40 years ago, when the retirement age was raised from 65 to 67.
In the interim, both the Biden and Trump administrations have implemented smaller-scale changes. The Biden administration repealed two long-criticized policies—the Windfall Elimination Provision and Government Pension Offset—restoring full benefits to about 2.8 million former public employees.
Separately, the Trump administration enacted a temporary senior tax deduction as part of its latest tax and spending package. While the deduction provides relief to some seniors aged 65 and up, it excludes low-income seniors who don’t pay taxes on their benefits and those who claim Social Security before age 65.
These benefits, while welcomed by many, have sped up the program’s projected insolvency, pushing policymakers toward more urgent action.
Sprick said this should serve as a wake-up call: “We’ve had questions for years about whether Social Security benefits are truly sufficient for low-income seniors. The time to act is now.”
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