7 Angry (But Justified) Reactions to the Proposed 2026 Social Security COLA Increase

Millions of Americans rely on Social Security benefits as a crucial lifeline, and annual cost-of-living-adjustments (COLAs) are necessary to help seniors keep up with rising costs. A COLA is a Social Security benefit increase that's based on increases in the current cost of living, as measured by the Consumer Price Index (CPI).

Each year in October, the Social Security Administration announces a COLA for next year based on inflation and other economic factors. However, beneficiaries just received some not-so-great news about next year's COLA.

One research organization, The Senior Citizens League, recently announced that the projected Social Security COLA for 2026 will be just 2.7%. While slightly higher than the 2.5% COLA in 2025, it still may not be enough for many to stay financially afloat. This news is frustrating, and for good reason.

The projected 2.7% COLA means the average Social Security check will rise by only $54.18 per month ($650.16 per year). This is based on the average Social Security benefit for a retired worker of $2,006.69 per month as of July 2025.

While any increase is welcome, many seniors may feel the bump is negligible when the cost of everyday essentials like groceries and utilities is still expensive. For those on a fixed income, every dollar matters, and this small raise feels more like a rounding error than a meaningful improvement.

Health care is one of the biggest expenses for retirees, and costs continue to rise faster than overall inflation. A small COLA may do little to offset annual premium hikes, medication costs, and long-term care expenses.

"Nothing to expect, 2.7% will get eaten up by [the] Medicare insurance increase, we won't see a dime of it in our pockets," lamented one FinanceBuzz reader.

According to new projections from the Centers for Medicare and Medicaid Services (CMS), the Medicare Part B monthly premium is estimated to be $206.50 in 2026. That's $21.50 more per month (or an 11.6% increase) compared with the 2025 monthly premium of $185. The gap between what a COLA provides and what medical bills demand could cause financial pain for seniors next year, making this projected adjustment feel pretty inadequate.

Seniors may feel that the Consumer Price Index (CPI), which helps determine the annual Social Security COLA, does not fully capture the real-world impact of the elevated cost of groceries.

The projected 2.7% COLA may be inadequate to cover the cost of a trip to the grocery store or the monthly electric bill. In fact, it's reported that the grocery prices are about 25% higher now than in January 2020.

One concerned FinanceBuzz reader can confirm, "They need to change the way this is calculated, do these people not shop? My grocery items have risen over 25%, with beef being considerably more expensive."

When the COLA lags behind the increase in the cost of everyday essentials, recipients feel as though their buying power is shrinking. For many, it may not just be frustration but rather a genuine worry about meeting basic needs.

Rising utility bills are another sore spot for retirees. The U.S. Energy Information Administration projects that residential electricity prices will climb from 17 cents per kilowatt-hour in 2025 to 18 cents in 2026, a roughly 6% increase. That pace is faster than the proposed 2.7% COLA, meaning Social Security benefits may not stretch as far when it comes to covering electricity costs.

"Even my utilities were up over 15% from last year," highlighted one other FinanceBuzz reader.

For many recipients, higher electric bills are not just an inconvenience but a strain that cuts into money needed for groceries, health care, and other essentials.

Many retirees may argue that the formula used to calculate COLA is out of step with the spending patterns of older Americans. The adjustment is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), based on the cost of goods and services for the average urban worker.

This metric may not reflect the heavier weight retirees place on costs such as health care. The 2026 COLA projection reignites this debate about fairness and accuracy.

Even though the official inflation rate has cooled down from pandemic-era highs, many older Americans may still feel squeezed by higher costs. Seniors may feel that government data underestimates what they experience at the grocery store register, for example.

This disconnect may leave them feeling that this projected COLA seems detached from the current reality.

For retirees, each new COLA announcement is met with a mix of hope and disappointment. When the increase falls short, it reinforces the feeling that Social Security is not keeping pace with the true cost of retirement.

"Another zero net gain year!" said one other FinanceBuzz reader.

The 2026 projection adds to the pattern where seniors may feel they are falling behind financially, leading to feelings of anger and frustration.

The proposed 2026 COLA increase of 2.7% may sound like progress, but for millions of retirees, it is simply not enough. With average payments rising by only about $54, seniors are left to wonder how they can cover expenses that keep climbing faster than their benefits.

The reality is that Social Security is meant to provide stability, yet many Americans may feel it no longer reflects the economic challenges they face. Understanding the limitations of a small COLA is a reminder that you must look for other ways to maximize your retirement savings and protect your financial security in the years ahead.