2026 Social Security COLA may offer retirees relief

Many older Americans rely on Social Security to get by. According to the Federal Reserve, the typical retirement savings for people aged 65 to 74 was only $200,000 in 2022. This amount may not last long over a retirement that could last 20 years or more. In 2025, seniors saw their Social Security benefits increase by only 2.5%. This was the smallest raise in several years, leading to dissatisfaction among recipients. With inflation still high, many are concerned about their finances. Now, there is a new estimate for the 2026 cost-of-living adjustment (COLA). The non-partisan Senior Citizens League predicts a 2.2% increase. While this may seem low, it suggests that inflation might be slowing down. A modest COLA could reflect improved economic conditions, which would be a relief for retirees. However, it is too early to confirm this estimate. The final COLA for 2026 will depend on inflation data from the third quarter of this year. Seniors need to prepare for uncertain times and consider options to boost their income. Some may need to consider part-time jobs or gig work to make ends meet. Being proactive about finances now may help them cope with future inflation and potential changes to their Social Security benefits in the coming years.