Social Security COLA Expected to Drop to Lowest Since 2021 for 2026, Increasing Senior Financial Strain

The Cost-of-Living Adjustment (COLA) for Social Security recipients in 2026 is projected to be the lowest since 2021, estimated around 2.4%, slightly below the 2.5% increase for 2025. This modest rise follows unusually high COLAs during the pandemic years, which saw increases of 5.9% in 2022 and 8.7% in 2023, but experts warn the smaller adjustment may not keep pace with ongoing inflation in critical expenses like housing and healthcare. Advocacy groups, including The Senior Citizens League (TSCL), highlight widespread concern among seniors, with many feeling that Social Security benefits are lagging behind rising costs, and call for urgent reforms prioritized by Congress and the administration. The lower COLA is expected to add financial pressure on seniors, a majority of whom depend on Social Security for at least half, if not all, of their income, potentially pushing more into poverty. The official COLA figure for 2026 will be announced by the Social Security Administration in October, after reviewing updated inflation data. Meanwhile, the 2025 COLA was set at 2.7%, providing a modest but permanent increase to help beneficiaries manage inflationary pressures.