Social Security Adjustments Fall Short for Retirees Amid Rising Costs
Social Security benefits are set to increase by 2.8% in 2026, a figure that experts argue fails to match the escalating expenses faced by older Americans. With Medicare Part B premiums projected to rise by 11.6% next year, retirees are grappling with a widening gap between their income and living costs.
The current cost-of-living adjustment (COLA) formula, tied to general inflation metrics, overlooks the specific financial burdens of those aged 62 and older. A shift to an inflation index tailored to seniors could better reflect their spending on healthcare and prescriptions—expenses that now erode 20% of purchasing power compared to 2010 levels.
Shannon Benton of The Senior Citizens League highlights the urgency of reform. Without adjustments to how COLAs are calculated, retirees will continue to face diminishing financial security despite nominal increases in benefits.
