Every fall, retirees breathe a little easier when the Social Security Administration announces the upcoming year’s cost-of-living adjustment (COLA). For 2026, the COLA is set at 2.8%, translating into an average increase of about $56 per month for most retired workers. But despite the bump, many older Americans find it barely moves the needle. Rising Medicare Part B premiums, higher grocery prices, and shrinking purchasing power quickly eat away at that “raise.” By February, many retirees realize their checks feel smaller, not bigger. Here’s why your 2026 COLA bump may not stretch as far as it seems—and what you can do about it.
