Retirement Social Security

6 Things To Do if 2026's Social Security COLA Wasn't Enough

The Social Security COLA may increase monthly checks, but Medicare costs and everyday expenses could leave retirees feeling stressed.

By Kristin Hitchcock

Edited by Sara Albertelli

Updated Jan. 7, 2026

Social Security announces a cost-of-living adjustment each year in an attempt to keep its benefits on pace with inflation. However, for many households, the math still doesn't quite work out. A higher check doesn't always mean more breathing room in the real world, even if you keep a close eye on your spending.

If 2026's increase didn't stretch as far as you hoped, there are smart money moves for seniors that go beyond cutting coupons or skipping small comforts.

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What the 2.8% COLA means in real dollars

The 2.8% COLA for 2026 translates to roughly $50 more per month for the average retired worker, based on typical benefit levels. For couples receiving two checks, the increase could be closer to $90 to $100 combined. While that helps offset inflation, it may fall short if housing, groceries, or insurance costs rise faster than average.

The issue is that COLAs are based on broad inflation data, but this might not reflect how retirees actually spend money. For instance, retirees tend to spend more on housing and medical care, which may rise faster than consumer goods.

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Why your take-home check might not feel higher

Even when benefits go up, deductions can quietly eat away at the increase. Medicare Part B premiums are often taken directly out of Social Security checks, and even small premium hikes can absorb a big chunk of a COLA.

Plus, a slightly higher income can often push retirees closer to thresholds that impact taxes and Medicare surcharges. Therefore, a raise may not really feel like one in everyday life.

1. Double-check whether you're missing help you qualify for

Many retirees assume they'd know if they qualified for additional assistance, but that's not always how it works out. Many programs like Medicare Savings Programs, Supplemental Security Income, and state-level benefits have income limits that can change yearly.

Even a modest shift in expenses or income could make a difference. Even a small amount of help with premiums or utilities can free up cash that's needed elsewhere.

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2. Revisit your medicare choice (even if nothing feels "wrong")

Medicare plans change quietly from year to year. Prescription drug coverage, formularies, deductibles, and out-of-pocket limits can all shift, sometimes in ways that only become obvious after bills start arriving.

Taking time during open enrollment to compare plans can pay off substantially, especially for any retirees with ongoing medical needs. A better-matched plan might lower annual costs far more than the COLA increase added.

3. Look for housing-related relief that often gets overlooked

Housing tends to be a pretty big expense during retirement, and local relief programs can fly under the radar. Property-tax exemptions, freezes, deferrals, or senior credits are commonly offered at the county or state level.

Renters aren't always left out, either. For instance, some areas may offer rent credits and utility assistance for older adults. These programs don't always advertise loudly, but they can meaningfully reduce fixed costs once you find them.

4. Be thoughtful about how extra income shows up

Not all income impacts retirement finances the same way. Some changes (like when you withdraw funds or where the income comes from) can influence taxes and medicare premiums more than you might expect.

Some retirees use a mix of savings, Roth withdrawals, or limited part-time work to avoid triggering higher costs elsewhere. These strategies aren't about gaming the system; they're about avoiding unintended consequences from modest income bumps.

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5. Use community resources before things feel urgent

Local aging agencies and nonprofit groups often provide services that reduce everyday expenses: transportation, meals, home repairs, or caregiving support. These resources aren't just for emergencies; they're designed to help seniors stay independent.

It isn't odd for retirees to hesitate to use them, assuming they're "not for me." But tapping into support early can help preserve your finances for the future.

6. A one-time checkup can reveal hidden pressure points

A financial review doesn't have to be expensive to be useful. Counselors who specialize in retirement management can help spot issues retirees may miss, like inefficient withdrawal timing and missed assistance programs.

Free or low-cost help is often available through nonprofit organizations or state aging offices. Even a single session can clarify whether your COLA shortfall is temporary or something that needs a different approach.

Bottom line

A 2.8% Social Security COLA can help on paper, but for many retirees, it hasn't kept pace with higher Medicare premiums, taxes, and everyday costs. When the increase disappears into deductions and rising expenses, the goal shifts from stretching dollars thinner to avoiding money mistakes that quietly drain retirement income.

Social Security COLAs can indirectly trigger higher Medicare costs or benefit taxation over time, even if your spending habits don't change. Keeping a close eye on income thresholds and benefit interactions early can help avoid wasting your retirement savings later, often without cutting into your quality of life.

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