How to Make the Most of Your 2026 COLA Increase

Even if your raise feels modest, you can take steps to maximize your Social Security benefits and preserve your financial security.

1. Revisit Your Retirement Budget

Update your budget to reflect the new income. Consider allocating part of your COLA increase toward emergency savings or medical expenses to stay ahead of inflation.

2. Monitor Medicare Costs

Review your Medicare Advantage or Medicare Supplement plan options during open enrollment. Choosing the right plan can help control rising out-of-pocket health care costs and protect your COLA raise.

3. Explore Tax Planning Opportunities

Consult with a retirement financial advisor to find strategies to lower your taxable income — such as Roth conversions, charitable contributions, or adjusting required minimum distributions (RMDs).

4. Delay Claiming If You Haven’t Yet

If you’re not yet collecting benefits, consider delaying your claim past full retirement age. Each year you wait increases your base benefit — and that means bigger future COLA adjustments in dollar terms.

5. Diversify Your Retirement Income

Social Security was never meant to be your only source of income. Building additional streams — through annuities, dividend-paying investments, or part-time work — can help protect your standard of living.