2026 Social Security COLA Finalized -- Retirees Face Major Financial Hit
The Motley Fool••business
Key Points:
- The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, marking a modest increase compared to 2.5% in 2025 but lower than earlier pandemic-era raises.
- Despite the COLA increase, many retirees face a financial setback because the adjustment formula does not reflect the higher inflation rates experienced in healthcare and housing costs, which are major expenses for seniors.
- Research indicates that seniors, particularly those retired since 1999, have effectively lost nearly $5,000 in Social Security benefits due to the COLA formula's focus on a consumer basket that doesn't match their spending patterns.
- Rising Medicare premiums, which increased from $185 in 2025 to $
