Social Security Adjustment - Social Security's cost of living adjustment (COLA) for 2026 will be 2.8% [2] - The 2.8% increase is slightly above the previous year's 2.5% [2] - The adjustment is based on the Consumer Price Index (CPI) for urban wage earners [3] Impact on Beneficiaries - The 2.8% increase will result in an average increase of $56 per month for the average beneficiary [5] Concerns and Criticisms - Critics argue that the CPI for urban wage earners doesn't accurately reflect the spending habits of retirees, particularly regarding housing, healthcare, and groceries [3][4] - Experts suggest that the current index is outdated and doesn't reflect seniors' actual spending [6] - The Senior Citizens League is actively advocating for a more relevant index [6] Potential Future Changes - There is ongoing discussion about the need to find a more accurate index that reflects the spending patterns of seniors [6]

Social Security Program Overview - Social Security was established in 1935 to provide economic security for older workers, people with disabilities, and those who have lost their jobs [1] - The Social Security Administration is going paperless on September 30th, requiring direct deposit or a Direct Express card for benefit payments [2] Social Security Funding and Future - Social Security is funded by payroll taxes and interest from bonds [4][10] - Since 2021, there has been a gap between income and benefits paid, with the trust fund projected to be depleted in 2033 [4] - If the trust fund is depleted, Social Security will only be able to pay out 77% of current benefits from payroll taxes and interest [5] - Social Security does not contribute to the US deficit, as it is funded by payroll taxes (FICA taxes) split evenly between employer and worker (124%) and interest payments from bonds [10][11] Addressing Myths about Social Security - The claim that Social Security is running out of money is false, although there is a potential for reduced benefits [3][5][6] - Aging baby boomers are not the primary problem for Social Security's future [6] - Income inequality, with more people earning above the Social Security tax cap of $176,100, is a significant issue [8]