"The 2026 COLA that retirees collected this year increased Social Security benefits by 2.8%, up from the 2.5% COLA that retirees got in 2025. Unfortunately, many retirees are not actually going to end up getting a 2.8% raise, and the COLA is unlikely to accomplish what it is supposed to for seniors, even for those who get the full amount."
"Many retirees are going to see their payments rise by less than 2.8% because Medicare premiums come out of Social Security checks for most people who receive government insurance coverage through the Medicare program. And, unfortunately, Medicare premiums increased this year along with Social Security checks - so while you're getting a Social Security raise, a good portion of it is going to be used to pay for your Medicare coverage."
"While Social Security Cost of Living Adjustments are supposed to help seniors keep pace with inflation by increasing benefits when prices go up, the things that seniors tend to spend the most on (like housing and healthcare) tend to increase in price at a higher rate than the COLA increases. So, while seniors see their checks increase in most years, their buying power usually goes down."
The 2026 COLA raised Social Security benefits by 2.8%, up from 2.5% in 2025. Many retirees will see less than a full 2.8% net increase because Medicare premiums are deducted from Social Security checks and rose substantially in 2026. Medicare premiums increased by $17.90, from $185 in 2025 to $202.90 in 2026, a near-10% jump. Essential senior expenses such as housing and healthcare are rising faster than COLA adjustments. As a result, COLAs often fail to preserve retirees' purchasing power, leaving many seniors worse off in real terms over time.
Read at 24/7 Wall St.
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