2026 Cost-of-Living Adjustment (COLA)
January 1, 2026
While there are many possible ways to provide streams of income for yourself in retirement, one of the most common is the receiving of a monthly Social Security check. The Social Security Administration has announced a 2.8% Cost of Living Adjustment increase for 20261. This follows a 2.5% increase last year. The increase is comparable to average adjustments throughout the history of Social Security following several years of larger adjustments. These larger adjustments coincided with economic struggles and the COVID pandemic at the beginning of this decade.
If you receive Social Security, your check will be slightly larger. That is never a bad thing, but it is important to realize this adjustment is not the same as earning a raise or a bonus back in your working years. The adjustments are designed to keep pace with inflation and maintain your purchasing power—not increase it.
Furthermore, if you are still building towards retirement and not claiming Social Security benefits, it is very important to know these benefits are not designed to cover all expected expenses in retirement. From investments, to annuities, to insurance products (and more), a well-thought-out plan can weigh your growth and risk strategies and can be adjusted as circumstances in your life change.
No matter where you are in your journey, consulting experienced professionals can help you prepare for retirement income that strives to meet your expected needs. Schedule a consultation to speak to our team about managing your expected income in retirement.