Social Security COLA hike coming in 2026. Don’t expect it to feel like a raise

The Social Security Administration has announced a 2.8% cost-of-living adjustment (COLA) for Social Security benefits in 2026, which will result in an average monthly increase of about $56 for retirees. This adjustment, based on delayed September inflation data, is slightly higher than some earlier projections but significantly less than the 8.7% hike seen in 2023. The delayed inflation report was a consequence of a government shutdown impacting the Bureau of Labor Statistics. The COLA calculation relies on third-quarter inflation figures, and the Social Security Administration had a November 1 deadline to announce the adjustment. Despite the announced increase, many beneficiaries are unlikely to feel it as a true raise due to rising costs, particularly in healthcare. A significant majority of individuals aged 50 and older surveyed by AARP do not believe a COLA of around 3% is sufficient to keep pace with inflation. Seniors face increasing expenses such as higher grocery prices, healthcare costs, and poten... download the app to read more