2026 Social Security COLA Predictions Have Increased: What This Means for Retirees

Core Insights - The Social Security Administration (SSA) is expected to announce a 2.7% cost-of-living adjustment (COLA) for 2026, an increase from 2.5% in 2025 [1] - The average retiree's monthly benefit will rise from $2,008.31 to $2,062.53, resulting in an additional $54.22 per month [3] - Despite the COLA increase, inflation rates may erode purchasing power, with the July consumer price index showing a 2.7% year-over-year inflation rate [3][4] Inflation and Expenses - The projected 2.7% COLA may not keep pace with rising costs in key expense categories for retirees, including housing, healthcare, transportation, food, and utilities [5] - Specific increases in expenses include housing up 4.0%, medical care up 4.2%, transportation up 3.5%, and food up 3.2% [8] Medicare Impact - Part B premiums for Medicare are projected to rise by 11.6% in 2026, reducing the effective COLA increase from $54.22 to $32.72 [6] - The total monthly premium for Medicare is expected to reach $206.50, an increase of $21.50 [6]