The latest update to Social Security’s cost-of-living adjustment (COLA) forecast has downgraded the expected increase in benefits for retirees. The new forecast, released by a senior advocacy group, now predicts a 2.2% COLA for 2026, which is below the average annual increase since 2010.
The downgrade comes after the release of the February inflation report from the U.S. Bureau of Labor Statistics, which showed a slower pace of inflation than expected. This decrease in inflation rates has led to a decrease in the predicted COLA forecast.
Despite this, some analysts predict that even a 2.2% increase would still push the average monthly retired-worker check above $2,000 for the first time. However, it’s worth noting that annual COLAs often fall short of the actual inflationary pressures retirees are facing.
The main issue with Social Security’s COLA forecast is that the Consumer Price Index (CPI-W) doesn’t account for the expenses that matter most to seniors, such as shelter and medical care services. These costs have consistently outpaced the COLAs retired-worker beneficiaries have received.
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Source: https://finance.yahoo.com/news/social-securitys-latest-2026-cost-074400339.html