In October, the 2026 cost of living adjustment (COLA) would be revealed. Experts currently predict that the 2026 COLA for Social Security will fall between 2.6% and 2.7% as inflation slows. However, given current inflation, it is too low to match retirees’ actual spending.
Independent analysts like Mary Johnson and the Senior Citizens League (TSCL) predict a 2.6% to 2.7% increase in benefits. This is marginally more than the 2.5% from this year. However, given the state of the economy and inflation, there is still very little to make the benefits viable and meaningful.
An additional $50 to $55 would be added by those who receive the typical monthly payout of roughly $2,000, which is far from sufficient. The overall benefits would only be about $2,060. The potential for COLA to increase to 2.8% is contingent solely on the stability of summer inflation.
However, the real buying power losses can be even smaller than they seem due to the high prices of housing and healthcare. These categories are not taken into account by CPI-W, and if they were, the COLA % would be quite high.
There is a price for the yearly boost. In 2026, Medicare Part B premiums are anticipated to increase from $185 to $206.50. The increase is 11.6%. Analysts have cautioned that this premium increase may negate the COLA rise entirely for many beneficiaries. This will be particularly true for people who make less than $800 per month.
Make sense of it.
At age 65, I am required to enroll in Medicare, and Part B is far more expensive than Tricare Prime.And in some way, this is better for those who are getting close to retirement?
Make sense of it.
July 30, 2025 Elsie Eye (@EyeElsie)
The net benefit to seniors may be further diminished when rising deductibles and Part D expenditures are included. For the majority of seniors, housing and healthcare inflation is one of the largest expense areas, and it will only increase in comparison to the CPI-W as a whole.
The official COLA, according to critics, is determined using CPI-W. This monitors the costs of urban workers, not retirees. Therefore, calculating the COLA is not an accurate policy. The largest contributors to older Americans’ spending are housing and healthcare, although CPI-W does not account for these in its inflation index.
These variables typically increase more quickly than overall inflation.
Social Security Update: A New Bill May Significantly Alter Benefits However, this might all change if the Boosting Benefits and COLAs for Seniors Act is implemented, and seniors’ benefits would probably increase annually.w6skdzWqs6 https://t.co/nWlDwTMEEJpic.twitter.com
March 22, 2024 Scott Cromwell (@aLifeOfItsOwn)
The Boosting Benefits and COLAs for Seniors Act has been suggested. Benefits might increase if computations were moved to the Consumer Price Index for the Elderly, or CPI-E.
However, implementing these reform initiatives is fraught with political challenges. One of these is the impending insolvency of Social Security by 2033.
October will see the official announcement: The average CPI-W inflation from July to September 2025 will serve as the basis for the 2026 COLA. Around the middle of October, the Social Security Administration will make its official announcement.
There are innocuous safeguards in place: Growing Part B premiums won’t reduce recipients’ checks. This is assuming they fulfill specific requirements.
The end of paper checks: The majority of payments will be made using prepaid debit cards or direct deposit by September 30, 2025.
Limited assistance is provided by tax relief: For seniors who qualify, the One Big Beautiful Bill allows a deduction of up to $6,000. The savings, however, might not be significant for a large number of pensioners with low incomes.
What to know about Social Security’s announcement that it will no longer issue paper checksThe tweet, https://t.co/NvpMrfCKeMpic, reads: 4YGg9u3nHr
August 4, 2025, ABC7 News (@abc7newsbayarea)
A little benefit increase is anticipated for retirees in 2026. But with the escalating costs of housing and healthcare, it might not go very far.
As the COLA announcement draws near, seniors are encouraged to explore their Medicare enrollment options. They should investigate additional retirement planning alternatives and double-check their expense exposure.
