Group 1 - Social Security provides essential support by lifting millions out of poverty and serving as a primary source of retirement income for many individuals [1] - The program includes cost-of-living adjustments (COLAs) designed to help retirees keep pace with inflation [1] Group 2 - The expected COLA for 2026 is around 2.7%, slightly higher than the 2.5% increase in 2025, with historical increases often below 3% [4] - The average monthly Social Security retirement benefit was $2,007 as of July, translating to approximately $24,000 annually; a 2.7% COLA would increase this to $2,061, adding $54 per month or $648 annually [4] Group 3 - Social Security's COLAs are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which may not accurately reflect the spending patterns of retirees [5] - A more suitable measure for retirees could be the CPI-E, which better accounts for expenses like healthcare [5] Group 4 - The Social Security program is facing financial challenges, with projections indicating that by 2034, only 81% of benefits may be payable due to a shift from surplus to deficit [8] - The future of COLAs in relation to potentially reduced benefits remains uncertain, as it is unclear whether they will apply to the full benefits or the reduced amounts [8]