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SSA announces 2.8% COLA hike for 2026; recipients call it insufficient amid rising inflation costs
Social Security Administration set the 2026 COLA at 2.8%, slightly above earlier forecasts, but retirees say the increase won’t offset inflation or higher costs
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The Social Security Administration (SSA) in the US announced the cost-of-living adjustments (COLA) for 2026 on Friday, October 24. COLA is the raise in the social security benefits that help the beneficiaries adjust to the increase in inflation prices. As per Reuters, the announced COLA raise is 2.8 per cent, which is higher than the expected percentage of 2.7 per cent.
However, many retirees believe that this will not be able to help them survive amid inflation. As many as 75 million Americans receive benefits from Social Security or Supplemental Security Income (SSI). They either receive one of the two or both, depending on their need for financial dependents.
COLA raise for 2026
With the 2026 COLA fixed at 2.8 per cent, which is higher than the current raise of 2.5 per cent, individuals will now receive $28 per $1,000 they get. This means that the retirement benefits will now be increased by another $56 per month. The new raise will be effective starting January, NBC News reported.
According to PBS News, the COLA for retirees and the disabled will now increase to $184,500 per year in 2026. It was earlier at $176,100 annually in 2025. In the past years, the COLA raise has been 3.2 per cent in 2024 and a historic increase of 8.7 per cent in 2023. Hence, it is being speculated that the recent COLA raise announcement will not be able to meet the needs created by growing inflation.
Moreover, the recent COLA announcement comes after a tumultuous year in the US, with a government shuffle and several layoffs, including those working in federal offices. Earlier in July, Treasury Secretary Scott Bessent assured that the Donald Trump-led administration is looking after protecting Social Security benefits.
Also Read: COLA 2026: Social Security payments to increase by $648? Here's what to know
Recipients unhappy with the COLA raise
The SSA has announced a raise of 2.8 per cent, which is higher than the current increase of 2.5 per cent. However, the beneficiaries do not feel completely happy with the announcement.
As per CNN, recipients feel that COLA is not helping them to keep up with their actual expenses. They also complain that most of their COLA goes to Medicare Plan, which leaves them little to no income for their expenditure.
Also Read: SSA makes policy U-turn, confirms paper checks will continue indefinitely
FAQs:
What is the 2026 COLA increase?
The SSA announced a 2.8 per cent cost-of-living adjustment for 2026, up from 2.5 per cent in 2025.
When will the new benefits take effect?
The COLA adjustment will apply starting January 2026.
How many Americans benefit from Social Security?
About 75 million Americans currently receive Social Security or SSI payments.
