The Growing Middle-Class Retirement Concern Social Security COLA Isn’t Fixing

Core Insights - The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, translating to an average increase of $56 per month, but this modest increase may not alleviate deeper concerns regarding the program's sustainability and purchasing power [2][4]. Group 1: Concerns Among Retirees - Many retirees express that the annual COLAs do not keep pace with their actual living costs, particularly in areas like healthcare and housing, leading to a sentiment that the 2.8% increase is insufficient [5]. - A significant portion of middle-class Americans, particularly those in their 50s and 60s, fear that Social Security benefits may be reduced or cease to exist, with 39% expressing this concern despite the COLA [3][4]. Group 2: Retirement Planning Strategies - Experts recommend stress-testing retirement plans to assess the impact of potential reductions in Social Security benefits, emphasizing the importance of having a written retirement plan [6]. - Delaying Social Security claims can increase permanent benefits, which may help mitigate future financial uncertainties related to policy changes or inflation [6]. - Building non-Social Security income through maximizing retirement account contributions and diversifying income streams is advised to enhance financial resilience in retirement [6].