Millions of retired Americans and people with disabilities will see a 2.8% increase in Social Security benefits in 2026, giving retirees a little extra support as living costs continue rising. This cost-of-living adjustment (COLA) will add over $56 per month on average for retirees.
The increase begins in January 2026, while SSI recipients will receive higher payments starting December 31, 2025. The announcement was delayed due to the recent federal government shutdown.
While the adjustment reflects cooling inflation, many seniors argue that real expenses—especially food, housing, insurance, and healthcare—are still rising faster than their Social Security checks.
What the 2026 COLA Means for Retirees
Bigger Checks, Smaller Buying Power
The 2.8% COLA is higher than the 2.5% increase in 2025, but still far from the historic 8.7% adjustment in 2023 triggered by high inflation. Many retirees say they continue to struggle, as rent, groceries, and insurance remain expensive.
For example, an 80-year-old retiree in South Carolina shared that her rent jumped by $400 in two years, making the increase feel insufficient.
Who Benefits?
- Nearly 75 million Americans will receive higher Social Security benefits
- 7.5 million SSI recipients get increased payments starting December 2025
- The wage cap for Social Security taxes rises to $184,500 in 2026, up from $176,100 in 2025
FERS Retirees Will Get Less
Federal retirees under the Federal Employees Retirement System (FERS) will see a smaller increase due to program rules:
| COLA amount | FERS receives |
|---|---|
| Over 3% | 1% less |
| 2%–3% | Flat 2% |
| Under 2% | Full COLA |
Since the COLA is 2.8% for 2026, FERS retirees will receive 2% instead. Federal groups argue this does not match actual senior living costs, especially with health insurance premiums rising over 12% next year.
Why Retirees Say It’s Not Enough
Inflation Still Hurting Seniors
AARP surveys show that 77% of Americans aged 50+ do not believe current COLA increases can keep up with the real cost of living. Expenses continue rising in categories seniors struggle with most:
- Housing
- Groceries
- Insurance
- Medical expenses
The MIT Living Wage Calculator estimates $10,184 per year for housing for a single adult in Florence, SC, plus thousands more for food and medical costs.
AARP’s View
AARP leaders call COLA a “lifeline”, but warn many older adults still can’t cover basic necessities even with the annual adjustment.
Social Security Age Debate and Agency Challenges
The Social Security Administration recently clarified that raising the retirement age is not being considered right now, after public concern over statements suggesting otherwise. The agency is also under pressure following workforce cuts and political debate around the program’s future.
Officials continue to stress that the annual COLA helps maintain income value, but acknowledge real-world challenges for seniors.
Is Social Security Running Out?
Funding Concerns
According to trustees, full Social Security benefits are only guaranteed until 2034. After that, the fund may only cover about 81% of scheduled benefits unless Congress steps in.
New Benefits Help But Add Pressure
Recent policy changes aim to support seniors:
✅ Temporary tax deduction for seniors age 65+
✅ Repeal of Windfall Elimination Provision (WEP)
✅ Repeal of Government Pension Offset (GPO), helping 2.8 million retirees
However, these measures push the trust fund closer to insolvency, speeding up financial strain.
Experts Call for Real Reform
Policy experts say yearly increases alone can’t fix long-term issues. They urge lawmakers to work on stronger, long-lasting reforms to secure retirement benefits for future generations.
