It's been a couple of weeks since the 2026 Social Security COLA was officially announced, and beneficiaries now know they will get a 2.8% raise in January. This means that the average Social Security benefit of about $1,865 per month can be expected to increase by $52 to $1,917.
Although the Social Security COLA is designed to help retirees and other Social Security recipients keep up with the rising costs of living, there are some that believe it doesn't do enough. In fact, recent polls show that the bulk of Social Security beneficiaries don't think the 2.8% adjustment does enough to help keep up with rising costs.
Image source: Getty Images.
Most Americans don't think the 2026 Social Security COLA is enough
As mentioned, the majority of Americans don't feel like the Social Security COLA is enough. In fact, 77% of Americans over 50 disagreed that a cost-of-living adjustment of about 3% is enough to help retirees keep up with rising prices, according to recent AARP research. This means that fewer than one-fourth think it does enough.
Additionally, nearly three-fourths of the roughly 1,000 people AARP surveyed believe that an increase of 5% or higher would be sufficient. And it's worth noting that the general opinion that the Social Security COLA doesn't do enough was consistent across the political spectrum. At least three-fourths of democrats, republicans, and independents say that the 2026 COLA does enough for retirees.
Is the Social Security COLA truly not enough?
At first, it might seem like the 2.8% COLA is sufficient -- or at least close to it. After all, CPI inflation data shows that the most recent inflation rate is 3%, and it's worth noting that the official 2.8% COLA is significantly higher than the 2.5% adjustment that was projected just a few months ago.
However, looking a little deeper shows that there are some legitimate reasons why older Americans might feel this way.
For one thing, inflation categories that affect the elderly more are rising faster than the overall rate. As one example, retirees tend to spend more money on healthcare than the average American, and the latest inflation rate for medical care is 3.9%. Similarly, the average retiree spends a greater percentage of their income on housing costs, which have an above-average 3.6% inflation rate as of September 2025 data.
There is another inflation metric designed to better reflect the effects of rising prices on seniors (known as the CPI-E), but unfortunately this is not the inflation gauge used to determine the annual COLA. But it has consistently risen at a somewhat higher rate than overall inflation for many years.
Additionally, Medicare costs are rising much faster than 2.8%. The Medicare Part B premium -- which most Americans 65 and older pay directly from their Social Security benefit -- is expected to be $206.50 per month in 2026. That's a nearly 12% increase from 2025 and will consume a significant portion of the 2026 COLA all by itself for affected beneficiaries.
It isn't just Part B premiums. Medicare Advantage plan deductibles could rise significantly, and other healthcare costs (including those seniors pay out of pocket) are rising.
The bottom line is that the 2.8% COLA for 2026 certainly helps retirees somewhat. But whether it goes far enough to fully keep up with rising costs is another matter. For many retirees, the increase they see in their January Social Security payment will be significantly less than their increased costs of food, housing, medical care, and other everyday expenses.
