Social Security 2026 COLA Expected Around 2.8% Amid Rising Senior Poverty

Social Security benefits are projected to increase by approximately 2.7% to 2.8% in 2026, reflecting a higher cost-of-living adjustment (COLA) due to recent inflation data. This adjustment, which will be officially announced in October after the Labor Department releases September inflation figures, aims to help seniors maintain their purchasing power amid rising prices. However, experts warn that the COLA increase may be insufficient to keep pace with the true cost of living for retirees, as Medicare premiums are expected to consume much of the additional benefit. The average monthly Social Security payment may rise by about $52 to $54, but significant increases in Medicare Part B premiums could offset these gains, leaving seniors with little net improvement. Furthermore, the current COLA calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which does not fully represent the expenses faced by retirees, prompting calls to use the Consumer Price Index for the Elderly (CPI-E) instead. Despite the larger COLA forecast, many seniors still face challenges in preserving their financial well-being as inflation continues to rise.