"The Social Security Administration announced a 2.5% cost-of-living adjustment for 2026, effective January 2026. For millions, this will be a modest increase in their monthly benefits, which roughly translates to an extra $48 per month for someone receiving the average monthly benefit of approximately $1,920 for a total of $576 more annually. For couples receiving dual benefits, the increase is roughly $1,000 to $1,200, depending on individual amounts."
"The problem is that the retirees don't spend money the same way the working-age population does, so the way this cost-of-living is created with the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is pretty outdated. Healthcare, housing, and food, just to name a few important categories, have seen prices rise faster than inflation, allowing for a gap to form between the COLA increase and the actual costs retirees are facing."
"Your New Benefit: Details of the Official 2026 Social Security COLA When you consider that the COLA only accounts for a 48% increase for the average Social Security recipient, the numbers don't get any better, even for those who are receiving the maximum benefit of roughly $4,018 per month. This increase, at 2.5%, is only roughly equivalent to around $100 per month and only around $200 per month for couples."
Social Security benefits will increase by 2.5% effective January 2026. The average recipient receiving about $1,920 will see roughly $48 more per month, or $576 annually. Couples with dual benefits will see increases roughly between $1,000 and $1,200 annually depending on individual amounts. The 2.5% adjustment reflects overall inflation measured by the CPI-W, which tracks urban wage earners and clerical workers. Retiree spending patterns differ from the working-age population, and healthcare, housing, and food costs have risen faster than overall inflation. The COLA increase often fails to match those higher retiree-specific cost increases. Increases are automatic and require no action.
Read at 24/7 Wall St.
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