Will 2026's Social Security COLA Disappoint? Here's What We Know So Far.
Because so many older Americans get most or all of their income from Social Security, a lot of people ages 62 and over depend heavily on annual cost-of-living adjustments (COLAs) to keep up with their living expenses. But unfortunately, Social Security COLAs have a tendency to disappoint seniors.Take 2025's COLA, which came in at 2.5%. Social Security COLAs are based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of each calendar year. But in January, the CPI-W was up 3% annually, which means 2025's Social Security COLA is already trailing inflation.Image source: Getty Images.Continue reading
Because so many older Americans get most or all of their income from Social Security, a lot of people ages 62 and over depend heavily on annual cost-of-living adjustments (COLAs) to keep up with their living expenses. But unfortunately, Social Security COLAs have a tendency to disappoint seniors.
Take 2025's COLA, which came in at 2.5%. Social Security COLAs are based on changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of each calendar year. But in January, the CPI-W was up 3% annually, which means 2025's Social Security COLA is already trailing inflation.
Image source: Getty Images.
