Social Security’s annual cost-of-living adjustment (COLA) is meant to help retirees keep up with inflation. But in 2026, many experts warn that any increase may be fully offset by skyrocketing out-of-pocket medication costs. Even modest drug price hikes can erase the few extra dollars added to monthly checks. Medicare coverage gaps and new pricing rules are complicating budgets further. Understanding how these forces interact is key to protecting next year’s raise before it disappears.
