Tens of millions of Americans rely on Social Security benefits for a substantial portion of their retirement income. Not only is Social Security a valuable source of retirement income, with the average retired worker receiving about $1,975 per month, but it is also the only inflation-protected source of income many retirees have.

The non-partisan advocacy group The Senior Citizens League predicts the 2026 COLA will be 2.1%, based on data from the Bureau of Labor Statistics’ CPI-W, the index used to calculate the annual increase. December’s CPI-W came in at 2.8%. Getty Images

Social Security benefits received a 2.5% cost-of-living adjustment (COLA) in 2025, but for many retirees, this is not enough to keep up with rising prices. Their monthly checks don't go as far as they used to,

Without Social Security, millions of Americans would be living below the poverty line. With it, many don't -- even though the average monthly retirement benefit of $1,975 (as of December) is not all that huge.

For retirees, healthcare expenses are unavoidable and increasingly unaffordable. Fidelity Research says a 65-year-old retiring in 2024 can expect to spend an average of $165,000 on healthcare and medical expenses throughout retirement — a 5% jump over the previous year and more than double 2002’s estimate.

Data from TSCL’s 2024 Senior Survey shows 62% of older Americans worry their retirement income won’t even cover essentials such as groceries and medical bills. Will 2026's COLA increase help?

It's far too early to know what next year's Social Security cost-of-living adjustment might be. However, based on several inflation estimates, it's possible to make an educated prediction. In this video, Certified Financial Planner® Matt Frankel discusses what he foresees for Social Security recipients in 2026.

For retirees, the annual cost-of-living adjustment (COLA) from Social Security is meant to offer some relief as inflation

Here's the Social Security Disability Insurance payment schedule for February 2025.

The Social Security program undergoes a series of revisions each year to ensure benefit payments keep pace with inflation and wages. The latest round of revisions took effect in January, and a recent survey published by Nationwide Retirement Institute suggests some of the changes will surprise many Americans.