The Social Security COLA Just Quietly Got Worse for 2026 Retirees

Social Security benefits are eligible for a cost-of-living adjustment (COLA) every year. Without COLAs, Social Security recipients would get the same benefits throughout retirement. Over time, they would be guaranteed to lose buying power. 

What COLAs do is adjust Social Security benefits based on inflation. That way, if costs go up a certain amount, Social Security checks also go up to make things fair for retirees.

In 2026, Social Security benefits got a 2.8% COLA. But many Social Security recipients are already struggling this year because that raise is not going very far. 

Here’s why things keep getting worse for the 2026 Social Security COLA, and what retirees can do about it.

Why 2026’s COLA is not holding up well

There are two main reasons why Social Security’s 2026 COLA is not helping retirees keep up with their expenses.

First, the cost of Medicare Part B rose substantially this year. Seniors who are enrolled in both Social Security and Medicare have their Part B premiums deducted automatically from their benefits. When there’s a big increase in the cost of Part B, retirees get to keep less of their COLA.

Secondly, the Iran war has made fuel prices more expensive. But that hasn’t just impacted what seniors are paying to fill up their cars. Prices are more expensive on a whole, because fuel costs impact the cost of other goods and services. 

In April, the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is what COLAs are based on, rose 3.9% annually. But Social Security’s 2026 COLA was based on inflation data from last year. Since benefits only rose 2.8% and costs are already up 3.9%, it’s clear that Social Security recipients are losing out on buying power.

What to do if your Social Security COLA is not keeping up

If you get most or all of your retirement income from Social Security, you may find that even with your COLA, you can’t pay all of your bills. If that’s the case, one thing you may want to do is find a way to boost your income.

Working could be an option, whether it’s a part-time role or freelance work. You could start a business as well. 

If you have any money saved, rather than keep all of it in cash, try putting some of it into investments that pay you on a regular basis, like bonds. 

You may need additional non-Social Security income to keep up with your expenses this year, because the 2026 COLA is set in stone. It can’t be adjusted just because inflation is on the rise. And if that pattern continues, without income on top of Social Security, you may find yourself struggling. 

You should also know that even if inflation cools down during the second half of 2026 and beyond, you may run into issues with future Social Security COLAs. 

Since healthcare costs tend to rise at a faster rate than inflation on a whole and the cost of Medicare Part B is expected to keep increasing, future COLAs may not help you keep up with your bills, either. So supplementing your Social Security checks is an important thing to start doing sooner rather than later.