First Estimates of the 2026 Social Security COLA: Retirees May Not Like Them
Introduction
The first projections for the 2026 Cost-of-Living Adjustment (COLA) for Social Security have been released, and the news may not be encouraging for retirees. With inflation slowing down, COLA increases could be lower than previous years, impacting millions of beneficiaries.
What Is COLA and Why Does It Matter?
COLA is an annual adjustment to Social Security benefits based on inflation rates.
It ensures retirees maintain purchasing power as the cost of living rises.
The 2024 COLA was 3.2%, following a record 8.7% increase in 2023.
2026 COLA Projections
Early estimates suggest a COLA of 2% to 2.5%.
This is lower than recent years, meaning smaller benefit increases.
The final COLA rate will be determined in October 2025 based on CPI-W (Consumer Price...