Social Security Benefits Aren't Enough to Live On. The 2026 Raise Won't Change That.

Core Insights - Many Social Security recipients are anticipating the announcement of the cost-of-living adjustment (COLA) for 2026, which is designed to help maintain purchasing power amid inflation [1][2] - The COLA announcement is expected by the end of October, with indications that the increase may be larger than that of 2025, although this is not guaranteed [2] - Despite the anticipated increase, Social Security benefits alone are insufficient for retirees to cover their living expenses [4][9] Social Security Benefits Overview - The average monthly Social Security benefit in 2025 is projected to be $2,008.31, translating to an annual income of approximately $24,100 [4] - Social Security was never intended to be the sole source of retirement income; it is designed to replace about 40% of pre-retirement income [5][6] - Experts recommend that retirees aim to replace 70% to 90% of their pre-retirement income, necessitating additional savings and income sources [6] Retirement Planning Considerations - With the decline of traditional pensions, retirees must rely on distributions from retirement accounts, emphasizing the importance of contributing to 401(k) or IRA plans during their working years [7] - Even high earners eligible for the maximum Social Security benefit of $5,108 per month (approximately $61,296 annually) may still need additional income sources to maintain their lifestyle [8]