The Senior Citizens League (TSCL), a nonpartisan advocacy group, has updated its forecast for the 2026 COLA to 2.4%, a slight uptick from the previous 2.3% estimate.
Despite this increase, the projection remains below the 2.5% adjustment implemented in 2025 and significantly lower than the 8.7% increase in 2023, which was the highest in over four decades.
The COLA is determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation.
However, this index may not accurately reflect the spending patterns of older adults, particularly concerning healthcare expenses.
Some experts advocate for using the Consumer Price Index for the Elderly (CPI-E), which gives more weight to medical costs, to represent retirees' needs better.
Implications for Retirees
A 2.4% COLA may not sufficiently keep pace with rising living costs, especially in essential areas like housing, groceries, and healthcare.
Reports indicate that approximately 73% of seniors rely on Social Security for at least half of their income, with 39% depending on it entirely.
The modest increase could strain budgets, potentially pushing more seniors toward financial insecurity.
Looking Ahead
The official COLA for 2026 will be announced by the Social Security Administration (SSA) in October 2025, based on inflation data from the third quarter.
Beneficiaries are encouraged to stay informed and plan accordingly.
-
Stay in the loop with the latest benefits resources!
At BrowseResources.com, we take pride in bringing you the most fresh and updated articles for you and your family.
Related Articles
View all posts
Minimum Wage Increase in the United States: Updated Hourly Rates for December 2025...
The U.S. minimum wage has seen its biggest shift in more than 15 years. After a long freeze, the federal rate finally increased, bringing meaningful relief to millions of low-income worke...
Stimulus Payments in December 2025: Here’s Who Is Getting Checks...
As 2025 wraps up, many households across the U.S. are still feeling the effects of stubbornly high prices. While federal stimulus programs have long ended, a few states continue to provide targeted finan...
IRS Raises 401(k) and IRA Contribution Limits for 2026: Here’s What Changes...
The IRS has confirmed new retirement contribution limits for 2026, giving workers more room to save and helping offset rising inflation. The update, announced November 13, increases limits for...
Social Security COLA 2026 Announcement: What Retirees Need to Know...
Social Security beneficiaries are waiting to see how much their monthly payments will increase next year. The Cost of Living Adjustment (COLA) is designed to help retirees, people with disabilities, and ...
Social Security Changes Coming Before and After January 1, 2026...
Nearly 70 million Americans depend on Social Security each month to cover essentials like housing, food, and healthcare. But major updates are on the horizon that could change how benefits are paid and how ...
SSI Recipients: These Months Will Bring Double Payments in 2025...
The Social Security Administration (SSA) normally sends SSI payments on the first of each month. If that day falls on a Saturday, Sunday, or holiday, the payment is sent earlier, often at the end of the pre...
