NRLN President’s Forum
Social Security COLA
Will Be 2.8% for 2026
The Social Security Administration (SSA) announced on Friday, October 24, there would be a 2.8% Cost-of-Living Adjustment (COLA) for 2026. SSA normally announces the COLA on October 15 but was delayed due to the federal government shutdown.
The COLA increase for January will add about $56 to an average monthly benefit of $2,071. Unfortunately, the standard Medicare Part B premium will take a chunk out of the COLA. It is expected to increase in 2026 by $21.50 from $185.00 per month $206.50.
Many seniors with Medicare Advantage plans are likely to learn their healthcare insurance provider is increasing deductibles, copays and the maximum out-of-pocket cost. Drug deductible – the amount you pay up front before coverage kicks in – are increasing for many Medicare Part D plans. Also, in a number of plans, medications that now come with a flat copayment will next year require “coinsurance,” a charge that represents a percentage of the medication’s total cost.
Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, was quoted in a Newsweek article that seniors have lost 20 percent of their purchasing power in Social Security payments since 2010 as COLA routinely lags actual inflation.
COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The NRLN advocates that the COLA calculation be changed to Consumer Price Index for Elderly (CPI-E) based on older Americans’ spending patterns, including high medical costs. Usually, the CPI-E would provide seniors with a slightly larger COLA.
The maximum amount of a worker’s earnings subject to Social Security tax will increase by 4.8%, or $8,400 to $184,500, from $176,100 in 2025. This means that 6% more wage earners will now have to pay in more than they do in 2025. The maximum is based on changes in the national average wage index, not CPI-W.
Bill Kadereit, President
National Retiree Legislative Network
