Social Security benefits may grow in 2026, but will it be enough to cover your bills?

Social Security benefits are expected to increase slightly in 2026, according to the latest forecast from The Senior Citizens League. The nonpartisan advocacy group estimates the 2026 cost-of-living-adjustment (COLA) will fall in at 2.7% in 2026, up .2% over the 2025 increase.

However, the expected benefit increase remains small when compared to inflation. According to the Bureau of Labor Statistics, as of the end of July, inflation in the U.S. for the year was at 2.7%, the same percentage as the anticipated COLA.

TSCL says that while the group expects a slight raise, it’s not enough, especially for seniors.

“With the COLA announcement around the corner, seniors across America are holding their breath. While a higher COLA would be welcome because their monthly benefits will increase, many will be disappointed,” said TSCL Executive Director Shannon Benton. “TSCL’s research shows that many seniors believe the COLA does not adequately capture the inflation they experience.”

According to data from the Social Security Administration, the yearly COLA has been relatively small over the last decade when compared to inflation. Outside of three years during the COVID-19 pandemic, the COLA has come in below the average yearly inflation of 3%. The yearly COLA has been:

• January 2016 — 0.0%
• January 2017 — 0.3%
• January 2018 — 2.0%
• January 2019 — 2.8%
• January 2020 — 1.6%
• January 2021 — 1.3%
• January 2022 — 5.9%
• January 2023 — 8.7%
• January 2024 — 3.2%
• January 2025 — 2.5

Earlier this year, TSCL conducted a study of seniors which found nearly 13% of respondents get by on less than $1,000 a month after taxes and deductions. It went on to say 39% of beneficiaries depend on Social Security for their entire monthly income. TSCL says that because the COLA is not rising at rates higher than inflation, many seniors are falling behind.

The Social Security Administration determines the COLA by using the Consumer Price Index for Urban Wage Earners (CPI-W) for the months of July, August and September and comparing that to same time period from the year prior. The CPI-W is calculated by analyzing the spending habits of Americans when it comes to items like food, consumer goods, housing, health care and more.

Benton has advocated for the SSA to use a different index to calculate the COLA, but also stopped short of offering specifics. When President Donald Trump’s “One, Big Beautiful Bill” passed earlier this year, TSCL praised some of the legislation, but called on Trump and Congress to do more.

“The Big Beautiful Bill is a good start on providing financial relief for American seniors. The next priority should be providing support for the estimated 7.3 million American seniors who are living on less than $1,000 per month, which is below the federal poverty line,” Benton said.