Social Security Increase for 2026 Criticized by Advocates for Seniors

Social Security beneficiaries will receive a 2.8% cost-of-living adjustment (COLA) in 2026, but many advocates argue this increase will be insufficient to meet the needs of older adults. The National Council on Aging (NCOA) expressed concern on Friday that rising Medicare premiums and escalating living costs will effectively negate any financial relief provided by the adjustment.

According to NCOA President and CEO Ramsey Alwin, the adjustment fails to account for the financial realities faced by many seniors. “While the COLA reflects the inflation rate, it is woefully insufficient for older Americans who already have high healthcare costs,” Alwin stated. He highlighted that the projected increases in Medicare premiums and deductibles could range between 4% and 12%, further straining the budgets of those on fixed incomes.

The COLA announcement, made on Thursday, determines the monthly benefits for over 71 million retirees, individuals with disabilities, and survivors beginning in January 2026. Although the increase aims to provide some relief amid persistent inflation, advocates maintain that it does not adequately address the true costs associated with aging.

The NCOA reported that the poverty rate among individuals aged 65 and older rose to 15% in 2024, indicating that the current formula for calculating the COLA does not reflect the actual spending patterns of seniors, who typically allocate a larger portion of their income to housing, healthcare, and prescription medications. Alwin noted the severe implications of financial insecurity, pointing to research from the LeadingAge LTSS Center at UMass Boston, which found that individuals aged 60 and older with annual incomes of $20,000 or less tend to die, on average, nine years earlier than those earning $120,000 or more.

Social Security benefits are adjusted annually based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks general inflation. The NCOA is now calling on lawmakers to modernize the benefits system and enhance programs that assist older adults in affording essential needs such as food, housing, and healthcare.

As the dialogue continues, the NCOA emphasizes the necessity for a reassessment of how COLAs are determined to better reflect the unique financial challenges faced by seniors.