1. The Social Security cost-of-living adjustment (COLA) for 2026 is looking pretty low

It seems that the COLA for next year will be higher than the last one (2.5% in 2025). The Social Security Trustees Report and The Senior Citizens League estimate an increase of 2.7%.

Retirees face a dilemma with COLA: a higher adjustment boosts their benefits, but it only happens because inflation is driving up their cost of living.

A smaller COLA means lower inflation, but also less money for retirees to cover rising expenses. Even if 2026 brings the projected 2.7% COLA, much of the increase could be wiped out by higher Medicare costs.

The average monthly Social Security check would rise about $54 (or $650/year), but after deducting the projected $21.50 Part B premium hike, the net gain would fall to just $32.68—with nearly 40% of the raise consumed by Medicare.

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