Social Security COLA 2026: a modest boost against rising prices

A cost-of-living adjustment (COLA) raises Social Security benefits each year to keep up with inflation, using CPI-W as the gauge. In 2026, benefits rose 2.8%, helping retirees, spouses, some children and disabled beneficiaries as prices for groceries, rent and medications climbed. The COLA is applied to a beneficiary’s base benefit, so your claiming age affects the dollar amount. Some advocates argue the COLA formula doesn’t fully reflect seniors’ expenses (healthcare, housing, prescriptions). While welcome, the boost isn’t a cure for high costs, so planners advise saving and diversifying income. The 2027 COLA is still unknown and likely modest; the COLA also affects SSI and disability benefits, and Medicare Part B premiums can offset increases.