2026 COLA Announced: 5 Angry Yet Justified Reactions to the Increase

The Social Security Administration has confirmed a 2.8% cost-of-living adjustment (COLA) for 2026 benefits. It kicks in this January and adds about $56 to the average retiree's monthly check.

But for millions of seniors living on fixed incomes, that increase feels more like a patch than real relief. For them, it's another sign of how distant the goal to retire comfortably now feels.

Here are five angry (yet justified) reactions to the 2026 COLA increase, straight from the people who depend on it most.

Rising Medicare costs are canceling out Social Security gains

One of the biggest complaints about the 2026 COLA is that much of it will be wiped out by higher Medicare costs. Because Medicare Part B premiums come straight out of Social Security checks, any increase often leaves retirees with less in hand each month.

For 2026, the standard Part B premium is projected to jump 11.6%, from about $185 this year to $206.50 next year. That $21.50 monthly increase would consume a big chunk of the average COLA raise.

Many retirees say it feels like a loop that never ends. Each time their Social Security payment goes up, Medicare takes more out. One FinanceBuzz reader summed it up clearly: "We get COLA, but the Medicare premium rises to take the COLA increase. So we receive nothing for inflation each year."

With a higher Medicare premium looming, the 2.8% COLA may not leave most retirees with any real extra spending money.

A 2.8% raise can't keep up with real-world costs

For most older Americans, a modest raise feels meaningless when prices for groceries, rent, and power keep pushing higher each month.

One FinanceBuzz reader explained, "My grocery budget is up about $40 a month … utilities added $15 … rent will likely rise after the COLA. My expenses will increase close to 10%, so I'm still losing about 7%."

Another reader noted, "Have you gone food shopping? Chicken, eggs, coffee ... everything is high." Another called the 2.8% COLA "a slap in the face," explaining that their rent alone went up $300 a month, far more than their entire Social Security check can accommodate.

For many seniors, the math doesn't add up, as the cost of living is rising faster than the COLA meant to offset it.

The formula is wrong for seniors

By law, Social Security ties annual increases to the Consumer Price Index for Urban Wage Earners (CPI-W), a measure that tracks the spending habits of working households, not retirees.

Seniors spend a bigger share of their income on medical bills, medications, and housing. Those prices have soared, but they don't carry enough weight in the CPI-W.

As one FinanceBuzz reader put it: "The formula for COLA does not reflect seniors' actual expenses. Healthcare and drugs are skyrocketing, so that measly COLA doesn't offset what we're facing."

Advocates have long called for a CPI-E, or Consumer Price Index for the Elderly, which would capture seniors' higher costs for healthcare and housing. So far, though, the change hasn't happened.

Change the rules, not just the rate

After decades of work and paying into Social Security, many retirees are still stretching every check. Their frustration targets not the COLA number itself but the system that produces it.

As one FinanceBuzz reader asked: "Why is our money being so poorly managed that seniors are struggling after working their entire lives? Why are they taxed at all? This needs to be looked at."

For many middle-income retirees, part of their Social Security is taxed once their total income crosses a set limit, which effectively claws back some of their COLA. Many find that deeply unfair. They want policymakers to make sure that seniors aren't nickel-and-dimed after decades of contributions.

COLA doesn't fix deeper gaps

Some retirees see a hard truth behind this year's COLA frustration. A small percentage boost can't replace the savings, investments, or home equity that some workers were never able to build.

One FinanceBuzz reader put it bluntly: "If you work 30–40 years and don't save or invest and don't own a home, you'll have a hard time. Social Security is a safety net, not a full income."

Another reader shared that they receive Social Security overseas, but with the U.S. dollar weakening, their monthly income in local terms dropped by about $100 compared to last year. The COLA, they added, "doesn't come close" to replacing that loss.

Inflation, exchange rates, and limited savings can chip away at retirement security. A yearly raise can help a little, but it's unlikely to fix the deeper financial gaps many seniors face.

Bottom line

About 40% of older Americans rely on Social Security as their main income, and when prices for essentials rise faster than benefits, the squeeze can be too much to handle. It's no surprise, then, that the 2026 COLA announcement has sparked so much frustration.

Still, knowing the limits of the COLA can help you plan beyond it. You can delay benefits to raise your future checks, cut non-essential costs, or even add part-time income. The COLA alone can't solve every gap, but a smart retirement plan can make it go further.

Writer Byline: David Maina

Bio: David Maina is a personal finance writer who covers everything from retirement and Social Security to insurance and mortgages. With a bachelor's degree in actuarial science, he draws on his background to break down complex financial concepts and help readers make smarter money decisions. His work has appeared in publications like SuperMoney and KeeperTax, among other online finance platforms.