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PhotoAlto\/Frederic Cirou \/ Getty Images<\/p>\n
A vast majority of older Americans surveyed by AARP said the 2026 Social Security COLA is not enough. <\/p>\n
Seventy-seven percent of Americans age 50 and over say the Social Security cost-of-living adjustment (COLA) does not keep up with rising prices.<\/p>\n<\/li>\n
The COLA for 2026 is 2.8%.<\/p>\n<\/li>\n
To offset the Social Security COLA’s inability to keep up with inflation, you’ll need strategies to stretch your income farther.<\/p>\n<\/li>\n
If Social Security’s annual increases won’t be enough for your budget, experts recommend delaying benefits<\/a> until age 70 for maximum payouts and diversifying retirement income sources<\/a> beyond Social Security.<\/p>\n<\/li>\n<\/ul>\n Social Security recipients will see their monthly checks increase by 2.8% in 2026, the Social Security Administration<\/a> has announced. For the average retiree collecting $2,008 per month, the COLA translates to an additional $56, bringing their monthly benefit to $2,064.<\/p>\n But most older Americans say that\u2019s still not enough: 77% told AARP the increase doesn\u2019t keep pace with rising prices, a rare issue that cuts across party lines.<\/p>\n Here’s why older Americans feel the 2026 COLA falls short\u2014and what you can do about it.<\/p>\n Even modest gaps between Social Security\u2019s annual COLA and real inflation can erode your purchasing power over time. Understanding how to bridge that gap with additional income streams can protect your standard of living and maintain your financial security in retirement.<\/p>\n The perception gap stems in part from how household budgets differ across age groups and employment status. Social Security calculates its annual COLA<\/a> using the Consumer Price Index (CPI)<\/a> for urban wage earners and clerical workers, which tracks price changes for employed individuals living in urban areas.<\/p>\n Many older adults say they need much more. When asked by AARP what increase would help them afford everyday living expenses, 72% said they need a bump of 5% or higher, and 26% said they’d need a full 8% just to keep pace with their real costs.<\/p>\n “For retirees who rely heavily on Social Security<\/a>, even a small gap between the COLA and real living costs can make a difference,” Gina Seibert, chief financial officer at PSECU, told Investopedia.\u00a0“Over time, those shortfalls can lead to dipping into savings sooner or cutting back on discretionary spending<\/a> to manage essentials like housing, food, and medical expenses.”<\/p>\n Given the difference between the official COLAs and perceived cost increases, financial experts recommend several strategies<\/a> for current and future retirees.<\/p>\n Story Continues <\/p>\n For every year someone delays receiving benefits beyond their full retirement age<\/a> (typically 67 for those born in 1960 or later), their benefit increases by about 8%, up until age 70. Someone who waits until 70 instead of claiming at 67 would receive about a quarter more every month for life, and future COLAs would increase based on that higher amount.<\/p>\n “Reviewing your budget regularly and prioritizing essential expenses is key to maintaining stability,” Seibert said. “Retirees can also look for ways to supplement income\u2014whether through part-time work, investment earnings, or community resources designed to support older adults.”<\/p>\n Financial advisors generally recommend aiming for total retirement income\u2014including Social Security, pensions, and personal savings\u2014to replace about 70% to 80% of pre-retirement earnings. Social Security typically replaces between 35% and 40% of the average worker’s pre-retirement income, meaning retirees need additional sources to fill the gap.<\/p>\n Building a diversified portfolio that includes 401(k)s, individual retirement accounts (IRAs)<\/a>, pension income, and taxable investment accounts can provide a buffer when COLAs fall short of actual cost increases.<\/p>\n With housing representing such a large portion of retirees’ budgets, reducing or eliminating housing costs before retirement can ease many budgetary issues you’re facing.<\/p>\n “Paying down high-interest debt<\/a> and using budgeting tools<\/a> can make managing monthly finances easier and more predictable,” Seibert said.<\/p>\n Many communities offer resources specifically for older adults, including prescription assistance programs, utility bill assistance, property tax relief programs, and older adult discounts.<\/p>\n Social Security’s 2026 COLA of 2.8% will provide some inflation<\/a> help for about 70 million beneficiaries. However, the vast majority of older Americans surveyed by AARP said it’s not enough.<\/p>\n