Social Security’s ‘tiny’ 2.8% increase for 2026 is generating buzz

The Social Security Administration announced Friday that A 2.8% increase in benefits next year Critics — who called the increase insufficient to keep pace with rising food, housing and health care costs — were immediately rebuked.

The adjustment, known as the cost of living adjustment, or COLA, said the SSA. It will raise your average monthly payments For Social Security recipients about $56 starting in January.

The increase applies to retirement, disability and supplemental income checks for about 71 million Americans.

The scream was immediate. Prominent groups said the increase was too small to offset real-world inflation pressures and accused Washington of ignoring the financial hardships of retirees.

“the 2026 Cola will hurt For seniors,” said Shannon Benton, Executive Director of the Nonpartisan Senior Citizens Association.

“Year after year, they warn that even small increases in Social Security will not be enough.”

Benton said her group’s research suggests that nearly one in ten retirement-age Americans live in poverty — and that the true number may be higher.

“It is time for our elected representatives to show up on behalf of seniors, otherwise seniors will not show up for them in the voting booth,” she said.

The modest increase came despite the Bureau of Labor Statistics reporting that prices rose 3% over the past year. Fueled by stubborn housing and medical costs.

Analysts said the difference reflects How does the government calculate COLA? — Based on the Consumer Price Index for Urban Wage and Clerical Workers, or CPI-W — a formula that critics say underestimates how inflation affects retirees.

Older Americans are spending more on health care and basics that are rising faster than average inflation, Benton said, calling for a shift to the Consumer Price Index-E, a measure designed to capture the spending habits of older adults.

Her group also called for an annual adjustment of at least 3%.

Social Security Commissioner Frank Bisignano defended that finding. Saying annual adjustment “It is one way we are working to ensure that benefits reflect today’s economic realities and continue to provide a foundation for security.”

Bisignano Agency had postponed the announcement for more than a week due to the government closure Which led to the discontinuation of inflation data for September.

The Bureau of Labor Statistics called on furloughed workers to finish the report and allow the COLA release to move forward.

The announcement comes as Social Security faces deeper financial pressures.

Previous forecasts warn The retirement trust fund can be exhausted within seven yearsWhich imposes automatic interest cuts of up to 24% if Congress fails to act.

The 2.8% increase roughly matches the average for COLAs over the past decade, which averaged 3.1%, but does not reflect how sharply costs have risen for retirees in recent years, economists said.