The Early 2026 Social Security Cost-of-Living Adjustment (COLA) Forecast Just Changed, and It Could Pleasantly Surprise Many Retirees
Lower inflation could actually be good for retirees, even if it keeps future Social Security increases in check.
Social Security is the backbone of many seniors' retirement budgets. More than two-thirds of senior citizens rely on the government program for at least half of their income, according to a survey from The Senior Citizen's League.
With inflation impacting everything from grocery prices to healthcare costs, many seniors have felt the impact on their budgets. That's why Social Security includes a cost-of-living adjustment, or COLA, every year based on a measure of inflation to help retirees maintain their standard of living. Seniors received a 2.5% bump in their monthly benefits starting in January, but that's down from the 3.2% increase they collected in 2024.
The early forecast for the 2026 COLA is already out, and seniors could be in for an even smaller raise in 2026. The Senior Citizens League expects a 2.3% benefits raise next January. While that's lower than it's been in recent years, the result could be a pleasant surprise for many.
