Inflation Outpaces COLA: Why Social Security Seniors Still Feel Budget Pressure

Rising inflation in 2026 is eroding fixed Social Security incomes even though the 2026 COLA is 2.8%; with May CPI-W up 4.4% and overall inflation above 4%, seniors’ purchasing power is still shrinking. A projected ~4% COLA for 2027 won’t necessarily provide relief if inflation remains high or accelerates and is based on past data, not future prices. If inflation cools, 2027’s COLA could be smaller. The article suggests seniors seek supplemental income (e.g., part-time work or renting out space) to offset the inflation-driven gap.