The Social Security Administration announced a 2.8% 2026 cost-of-living adjustment for beneficiaries early Friday morning. The anticipated average monthly benefit boost of $56 — or about $670 for the year — has once again failed to impress advocacy groups like the AARP, Social Security Works and others.
“The 2.8% Social Security COLA for next year will be a disappointment to many seniors struggling to pay their monthly bills,” said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare. “This is the second lowest COLA since 2021 and a small increase from the current one.”
While any increase in benefits helps, Richtman said, many seniors will see their much of their 2026 COLA offset by an anticipated increase in Medicare Part B premiums — projected to be around $21 per month. Depending on their individual benefit, he warned, some beneficiaries may see no net increase in Social Security benefits next year.
Research conducted by AARP shows that older adults feel even a COLA of 3% would be insufficient to help them stay ahead of the real rate of inflation they face. Specifically, only 22% of Americans 50 and older agree that a 3% COLA would do just that, while 77% disagree. This sentiment is consistent across political party affiliations, with large majorities of Republicans (75%), independents (82%) and Democrats (79%) expressing disagreement.
“The Social Security COLA plays a crucial role in supporting older Americans, helping ensure retirement income keeps pace with inflation,” said AARP CEO Myechia Minter-Jordan. “It isn’t just a source of income — it’s a lifeline of independence and dignity for tens of millions of older Americans.”
A similar survey published by the Senior Citizens League found only 10% of seniors are happy with the amount they receive from their monthly Social Security checks, with many citing COLAs that lag inflation as a problem. The research found that 94% of seniors said the 2025 COLA of 2.5% was too low and would cause their monthly checks to fall behind inflation.
Echoing prior conversations with ThinkAdvisor, Social Security Works President Nancy Altman said Congress should update the formula used to calculate annual COLAs to more accurately measure rising costs confronting older Americans.
“Additionally, Congress must act to bring down health care costs, so that seniors and people with disabilities can keep their hard-earned Social Security benefits,” Altman said, calling on both parties in Congress to reach an agreement on subsidies for consumers using the Affordable Care Act marketplace to purchase health insurance.
“ACA premiums are projected to skyrocket next year, with those over 50 hit hardest,” she warned. “For many of these beneficiaries, the COLA increase won’t come close to covering their increased health care premiums.”
Both Social Security Works and Richtman’s organization have long advocated for a revamped COLA formula — namely one based on the Consumer Price Index for the Elderly — that would measure inflation for the goods and services that seniors rely upon as a distinct demographic group.
“The current formula, the Consumer Price Index for Urban Wage Earners and Clerical Workers, most definitely does not reflect seniors’ spending patterns,” Richtman said. “This results in inaccurate, inadequate COLAs.”
A look at previous COLAs shows that the CPI-E would often, but not always, have yielded bigger benefit increases.
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