Four Facts About Social Security COLAs You Need to Know

Cost-of-living adjustments (COLAs) are designed to help Social Security benefits keep pace with inflation. The COLA is 2.8 percent in 2026. That’s a slight increase from 2025’s 2.5 percent COLA, and the increase equates to about $56 per month on average for retirees receiving benefits.

Many people wonder how and why the COLA changes from year to year. AOL did a great job of breaking it down, explaining four critical facts about this important Social Security function.

There isn’t always a COLA. The COLA is supposed to help offset rising prices, so if there is little or no inflation, then there may be no need for a COLA. In fact, there were none in 2009, 2010, and 2015.

Benefits never decrease. In the case of those years with no COLA, benefits remain the same. Seniors do not have to worry about receiving less due to deflation.

COLA is not just for retirees. The Social Security COLA extends to all forms of Social Security, including benefits for the disabled, survivors, and Supplemental Security Income (SSI) recipients.

There may be a better way to calculate COLA. Right now, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is used to measure inflation. It tracks the cost of more than 200 everyday expenses of urban wage-earners. But their expenses are vastly different than those of retirees, who spend more on medical care and housing. Senior advocates suggest using the Consumer Price Index for the Elderly (CPI-E), which more fairly accounts for senior spending.

Congress Can Help

All of us here at The Seniors Trust believe the time has come for Congress to enact the Social Security Expansion Act.

Not only does this bill ensure that Social Security benefits keep pace with inflationary increases in senior spending, but 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.