77% of Older Individuals Say the 2026 Social Safety COLA Is Not Sufficient—Here is What You Can Do About It

Social Safety recipients will see their month-to-month checks improve by 2.8% in 2026, the Social Safety Administration has introduced. For the typical retiree amassing $2,008 per thirty days, the COLA interprets to an extra $56, bringing their month-to-month profit to $2,064.

However most older Individuals say that’s nonetheless not sufficient: 77% informed AARP the rise doesn’t hold tempo with rising costs, a uncommon challenge that cuts throughout get together traces.

Here is why older Individuals really feel the 2026 COLA falls brief—and what you are able to do about it.

Why Social Safety’s COLA Does not Cowl What Retirees Would possibly Want

The notion hole stems partly from how family budgets differ throughout age teams and employment standing. Social Safety calculates its annual COLA utilizing the Client Worth Index (CPI) for city wage earners and clerical employees, which tracks value adjustments for employed people residing in city areas.

Many older adults say they want rather more. When requested by AARP what improve would assist them afford on a regular basis residing bills, 72% stated they want a bump of 5% or larger, and 26% stated they’d want a full 8% simply to maintain tempo with their actual prices.

“For retirees who rely closely on Social Safety, even a small hole between the COLA and actual residing prices could make a distinction,” Gina Seibert, chief monetary officer at PSECU, informed Investopedia. “Over time, these shortfalls can result in dipping into financial savings sooner or slicing again on discretionary spending to handle necessities like housing, meals, and medical bills.”

How To Bridge the Hole Between COLAs and Rising Prices

Given the distinction between the official COLAs and perceived value will increase, monetary specialists suggest a number of methods for present and future retirees.

Contemplate Delaying Advantages

For yearly somebody delays receiving advantages past their full retirement age (usually 67 for these born in 1960 or later), their profit will increase by about 8%, up till age 70. Somebody who waits till 70 as a substitute of claiming at 67 would obtain a few quarter extra each month for all times, and future COLAs would improve based mostly on that larger quantity.

Diversify Revenue Sources

“Reviewing your finances often and prioritizing important bills is essential to sustaining stability,” Seibert stated. “Retirees may search for methods to complement revenue—whether or not by part-time work, funding earnings, or neighborhood sources designed to help older adults.”

Monetary advisors usually suggest aiming for complete retirement revenue—together with Social Safety, pensions, and private financial savings—to interchange about 70% to 80% of pre-retirement earnings. Social Safety usually replaces between 35% and 40% of the typical employee’s pre-retirement revenue, that means retirees want extra sources to fill the hole.

Constructing a diversified portfolio that features 401(ok)s, particular person retirement accounts (IRAs), pension revenue, and taxable funding accounts can present a buffer when COLAs fall wanting precise value will increase.

Cut back Fastened Bills Earlier than Retirement

With housing representing such a big portion of retirees’ budgets, decreasing or eliminating housing prices earlier than retirement can ease many budgetary points you are going through.

Handle Debt

“Paying down high-interest debt and utilizing budgeting instruments could make managing month-to-month funds simpler and extra predictable,” Seibert stated.

The Backside Line

Social Safety’s 2026 COLA of two.8% will present some inflation assist for about 70 million beneficiaries. Nevertheless, the overwhelming majority of older Individuals surveyed by AARP stated it isn’t sufficient.