Advocacy Group Warns- 2026 Social Security COLA Increase May Be the Smallest in Years
Social Security recipients are set to face another year of limited cost-of-living adjustments (COLA), with the 2026 increase expected to be even lower than the already modest 2.5% raise in 2025.
This marks a continuing trend of low COLA hikes in recent years, following a period of higher increases driven by the COVID-19 pandemic’s impact on inflation.
2026 COLA Projection: A Modest Increase
According to the latest projections from The Senior Citizens League (TSCL), the COLA for Social Security beneficiaries in 2026 is anticipated to be just 2.4%.
This estimate was derived from inflation data released by the U.S. Labor Department for April 2025, which highlighted ongoing trends in consumer goods prices.
In 2022 and 2023, Social Security recipients saw substantial increases in their COLA due to high inflation—5.9% in 2022 and 8.7% in 2023.
However, TSCL warns that the projected 2.4% increase in 2026 would be the lowest COLA since 2021, which saw a 1.3% adjustment.
Why Are COLA Increases So Low?
The Social Security Administration (SSA) adjusts benefits annually based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation.
These adjustments are meant to preserve the purchasing power of Social Security and Supplemental Security Income (SSI) recipients in the face of rising living costs.
Despite these adjustments, TSCL argues that recent COLA increases have been insufficient, failing to account for the rising costs that seniors experience, especially in areas like healthcare, housing, and food.
According to TSCL, the CPI-W doesn’t adequately reflect the spending habits of older adults, leading to a disconnect between the COLA adjustments and the actual needs of seniors.
Healthcare Costs: A Growing Burden for Seniors
A key concern for seniors is the rising cost of healthcare. TSCL’s survey of nearly 2,000 Social Security recipients revealed that 20% of respondents are spending over $1,000 a month on healthcare alone.
This is a significant burden, and many seniors have reported that their overall expenses, particularly for essentials like food and housing, are not fully covered by their COLA increases.
TSCL’s executive director, Shannon Benton, has emphasized that while the COLA adjustment is crucial for maintaining seniors’ purchasing power, the current system doesn’t go far enough in addressing their needs.
“For many seniors, a COLA that fails to keep pace with inflation means a decline in their standard of living,” Benton states.
Potential Relief: Lower Prescription Drug Costs
On a more positive note, TSCL has expressed support for efforts to reduce prescription drug costs, particularly through an executive order aimed at making prescription drugs more affordable for seniors.
Benton commented that this initiative represents a “big step” toward easing the financial strain on older Americans, especially given the high cost of medications in the United States compared to other countries.
As Benton pointed out, American taxpayers should not be subsidizing the cost of healthcare for other nations while American seniors struggle to afford necessary medications.
Who Is Affected by COLA Increases?
As of April 2025, nearly 7.4 million Americans are receiving Social Security or SSI benefits, according to the SSA. These beneficiaries rely heavily on COLA adjustments to help maintain their standard of living amidst rising inflation.
Unfortunately, the modest increases in recent years may not be enough to keep pace with the growing costs of essential goods and services.
Projected COLA Increases Over the Years
| Year | COLA Increase |
|---|---|
| 2021 | 1.3% |
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 2.5% |
| 2025 | 2.4% (projected) |
The 2026 Social Security COLA is projected to be one of the lowest in recent history, offering only a modest 2.4% increase.
While these adjustments are designed to help seniors keep up with inflation, many argue that they do not go far enough, especially in light of rising healthcare costs.
With over 7 million Americans relying on Social Security benefits, there is a pressing need for more accurate adjustments that reflect the real costs seniors face.
While there is hope that initiatives to lower prescription drug prices may offer some relief, much more needs to be done to support the financial well-being of older Americans.
FAQs
What is the COLA for 2026 expected to be?
The 2026 COLA for Social Security recipients is projected to be 2.4%. This is slightly lower than the 2.5% increase expected in 2025.
Why are recent COLA increases lower than previous years?
The recent low COLA increases are due to a decrease in inflation compared to the significant spikes caused by the COVID-19 pandemic. The adjustments are based on data from the Bureau of Labor’s CPI-W, which measures inflation but does not always reflect seniors’ actual spending patterns.
How are healthcare costs affecting seniors’ COLA increases?
Many seniors report spending more on healthcare than their COLA increases account for. According to TSCL, a significant portion of Social Security beneficiaries spend over $1,000 a month on healthcare, a cost that is not adequately covered by the current COLA adjustments.