Social Security’s annual cost-of-living adjustment (COLA) is designed to give seniors an inflation-based raise every year, but the extra money doesn’t always provide much of a financial boost.
The COLA formula doesn’t account for senior-specific expenses, such as increases in the Medicare Part B premium. In 2026, the higher premium will eat up more than one-quarter of the average Social Security COLA, according to the Center for Retirement Research at Boston College.
