The Social Security Administration (SSA) announced that retirees, disability recipients and others on the program will receive a 2.8% raise in 2026, roughly $56 more each month starting in January. The change applies to about 71 million people who rely on Social Security as a core part of their income.
The news sparked an instant backlash from senior‑citizen groups who say the bump is far too small to keep pace with the steep rise in everyday costs. “The 2026 COLA is going to hurt,” said Shannon Benton, executive director of the Senior Citizens League. “Year after year, they warn that the increase won’t be enough.” Benton’s research shows nearly one in ten Americans in retirement are living in poverty—a figure that could be higher in the real world.
The 2.8% increase is derived from the Cost‑of‑Living Adjustment (COLA), a measure officials compare with the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI‑W). Critics argue that CPI‑W underestimates inflation for seniors, who spend more on medical treatment and other essentials that rise faster than average prices. Benton calls for a shift to the CPI‑E index, which better tracks seniors’ spending patterns, and for a minimum 3% annual adjustment.
The Bureau of Labor Statistics released the data that feeds the COLA after a brief pause caused by the September government shutdown. The shutdown had stalled the release of inflation figures, delaying the SSA’s announcement by more than a week. Commissioner Frank Bisignano defended the methodology, saying the adjustment “is one way we are working to make sure benefits reflect today’s economic realities.”
The 2.8% raise matches the average COLA over the past decade, which has been about 3.1%. However, economists warn that a 2026 COLA of only 2.8% does not reflect the sharp increase in costs for retirees in recent years—especially housing and health care.
Beyond the immediate adjustment, Social Security faces deeper long‑term challenges. Projections indicate that the trust fund that finances old‑age benefits could run out within seven years, which would force an automatic cut of up to 24 % to benefits if Congress does not act.
While the Administration celebrates the modest uptick for social‑security recipients, senior advocates and analysts step up their call for stronger inflation protection and deeper reforms that would secure the program’s future for the country’s aging population.
Source: New York Post
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