What Everyone Gets Wrong About Social Security COLAs

Retirees will receive a 2.8 percent Social Security cost-of-living adjustment (COLA) in 2026. That will mean an extra $56 each month on average. For struggling seniors, that won’t make much of a difference as prices remain high.

24/7 Wall St. explains there is a reason for that. “Social Security COLAs are designed to help benefits keep up with inflation. However, they are not designed to beat inflation.”

Social Security COLAs are based on past inflation readings, not future ones. The COLA you will get next year was calculated based on inflation changes during the third quarter of this year.

The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will provide a fair annual COLA, give retirees an immediate benefits increase of about $200 a month, increase minimum benefits, and ensure the long-term solvency of this critical program.