"Social Security recipients should see their paychecks increase this month. That's because benefits are getting a 2.8% cost-of-living adjustment, or COLA. A 2.8% increase is by no means the most generous Social Security COLA to ever arrive, but it's also not the stingiest. In fact, last year, Social Security benefits only rose 2.5%, so a 2.8% COLA is already an improvement. But that doesn't mean you'll be rolling in money once your Social Security checks increase by 2.8%."
"Persistent inflation has been wreaking havoc on many seniors' income. And with the threat of tariffs continuing to loom, 2026 could prove to be another year when living costs keep going up without relief in sight. If you're on Social Security, it's important to do what you can to make the most of your 2026 COLA. Here's how. 1. Invest the money if you don't need it Many Social Security recipients don't have income outside of those monthly benefits"
"But if you have other income streams - perhaps savings or a part-time job - then you may not be spending your Social Security paycheck each month in full. If that's the case, consider taking your COLA and investing it. But if you buy shares of a low-cost dividend ETF, you can set yourself up with ongoing income that may come in handy over time."
Social Security benefits receive a 2.8% cost-of-living adjustment in 2026, up from 2.5% the prior year. Persistent inflation and potential tariffs mean living costs may continue rising, limiting the effective benefit of the COLA for many seniors. Recipients who rely solely on monthly benefits may see only modest relief, while those with other income sources can consider investing the increase to generate ongoing income. The COLA also provides an opportunity to reassess retirement budgets, prioritize spending that improves quality of life, outsource physically taxing tasks, or use extra funds for more social activities.
Read at 24/7 Wall St.
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