Millions of retirees count on their annual Social Security Cost-of-Living Adjustment (COLA) to keep pace with rising prices. But forecasts for 2026 suggest a smaller increase—potentially less than 2%—that won’t match the real-world cost of food, housing, and healthcare. After years of high inflation, many seniors hoped for relief, not retreat. Unfortunately, the formula that calculates COLA doesn’t always reflect actual spending patterns for older Americans. That mismatch means many will see their purchasing power shrink even as benefits “rise.”
