"In 2026, Social Security recipients are in line for a 2.8% COLA, which is a notch higher than the 2.5% raise they received at the start of 2025. The reason that COLA is so significant is that it represents the highest five-year COLA average in 40 years. Here's what the past five announced COLAs have looked like: All told, that's an average COLA of 4.62%."
"Among Social Security recipients ages 65 and older, 39% of men and 44% of women receive 50% or more of their income from those monthly benefits. And within that same age group, 12% of men and 15% of women depend on Social Security for 90% or more of their income. In 2026, Social Security's COLA will be higher than 2025's. That COLA will also be significant for another reason."
Many seniors rely heavily on Social Security, with 39% of men and 44% of women ages 65 and older getting at least half their income from benefits, and 12% of men and 15% of women depending on Social Security for 90% or more of their income. In 2026, recipients will receive a 2.8% COLA, slightly above 2025's 2.5%. That raise contributes to the highest five-year COLA average in 40 years, about 4.62%, driven by pandemic-related inflation. However, the COLA calculation relies on third-quarter changes to the CPI-W, a methodological flaw that may leave increases insufficient.
Read at 24/7 Wall St.
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