How the 2026 Social Security COLA Is Holding Up So Far
Social Security recipients received a 2.8% cost-of-living adjustment (COLA) for 2026. Although it’s still early in the year, it seems to be outpacing inflation.
An article by The Motley Fool explains that the formula to calculate Social Security COLAs is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). In December, the CPI-W increased 2.6% on an annual basis, so it appears this year’s COLA is more than the rate of inflation.
But that’s not exactly true. Seniors may still be struggling even though they got a 2.8% COLA increase.
A Better COLA Calculator
The problem is how COLA is calculated. Wage earners have vastly different spending habits than retirees. The CPI-W underestimates the amount seniors spend in categories where inflation tends to be very high, such as healthcare.
Instead, senior advocates, including The Seniors Trust, believe the Consumer Price Index for the Elderly (CPI-E) should be used to calculate the COLA. This index shows how inflation actually impacts the typical retiree based on seniors’ spending habits.
We are calling on Congress to enact the Social Security Expansion Act. It calls for adopting the CPI-E as the COLA calculator, better ensuring that Social Security benefits keep pace with inflation.
Additionally, this landmark piece of legislation would also extend the solvency of the Social Security trust fund through 2096, expand Social Security benefits by about $200 a month for current and new beneficiaries, require millionaires and billionaires to pay their fair share into Social Security by lifting the wage cap, and improve the Special Minimum Benefit for Social Security recipients which would help low-income workers stay out of poverty.
Is this something you can get on board with? Join us in urging lawmakers to enact the Social Security Expansion Act. You can show your support by signing our petition.
