The Social Security COLA Should Increase Next Year — But Not By Enough!
The average Social Security retirement benefit could be more than $2,000 per month next year if everything stays on track. While that might sound like good news to seniors, think again. A benefit boost happens as a means of combating inflation, to help ensure buying power remains the same.
According to an article by Money magazine, the latest projections for Social Security’s 2026 cost-of-living adjustment, or COLA, continue to inch upward. The latest predictions put it between 2.6% and 2.7%. That’s up slightly from earlier estimates of 2.5% and “reflects the continued pressure of inflation, tariffs, and policy uncertainty heading into the fall.”
If this prediction holds, a 2.7% COLA increase would modestly increase the average Social Security benefit for retirees from about $1,950 per month to $2,003 per month.
COLA Calculator
That increase would be a lot more if we used a better COLA calculator. One more attuned to seniors’ spending.
Right now, COLA increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is based on changes in the average prices of household goods such as food, housing, and transportation.
Many senior advocates, including The Seniors Trust, believe this is the wrong inflation measure to use. We believe the Consumer Price Index for the Elderly (CPI-E) would be a better measure. It puts more weight on categories, such as healthcare and housing, that impact seniors more.
Landmark Legislation
That could become a reality if the Social Security Expansion Act is passed. 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 Congress to enact the Social Security Expansion Act. You can show your support by signing our petition.
