Aging Groups Say 2026 Social Security COLA Falls Short of What’s Needed for Seniors

Published in RINewsToday on October 27, 2025/

On October 24, the Social Security Administration (SSA) announced a 2.8 percent Cost-of-Living Adjustment (COLA) increase for 75 million beneficiaries, including those receiving Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) payments.

Specifically, nearly 71 million Social Security beneficiaries and OASDI recipients will see a 2.8 percent COLA starting in January 2026. In contrast, SSI recipients will begin seeing their increased payments on December 31, 2025. (Note: Some individuals receive both Social Security benefits and SSI.)

According to the SSA, the average Social Security retirement benefit will increase by approximately $56 per month, bringing the average monthly check to $2,071, up from $2,015 in 2025. For married couples, the average increase will be $88, raising their monthly benefit from $3,120 in 2025 to $3,208 in 2026.

Over the past decade, the average COLA increase has been about 3.1 percent. (Note our calculations, below, which excluded the highs and lows due to COVID comes out with an average of 2.6%). For 2025, the COLA was 2.5 percent. However, in historical terms, this COLA ranks about average, coming in 29th out of the 51 COLAs announced since the government began tying COLAs to the Consumer Price Index (CPI) in 1975, according to The Senior Citizens League (TSCL).

The Social Security Act mandates how the COLA is calculated, tying it to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Department of Labor’s Bureau of Labor Statistics.

The SSA’s announcement, originally scheduled for October 15, was delayed by nine days. According to the federal agency and multiple news outlets, the delay was caused by furloughed employees at the Bureau of Labor Statistics, which hindered the timely release of the September CPI-W report during the federal government shutdown.

Other annual adjustments, effective each January, are based on increases in average wages. For 2026, the maximum amount of earnings subject to Social Security taxes (the taxable maximum) is expected to rise to $184,500 from $176,100.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we ensure benefits reflect today’s economic realities and continue to provide a foundation of security,” said Social Security Administration Commissioner Frank J. Bisignano in a statement announcing the 2026 COLA. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

Notification of 2026 COLA Increase

The SSA will begin notifying beneficiaries about their new benefit amounts by mail in early December 2025. As in previous years, beneficiaries will receive a simplified, one-page COLA notice that uses plain language and provides details on their new benefit amount and any deductions.

Beneficiaries with a “my Social Security” account can view their COLA notices online, which is secure, easy, and faster than receiving a letter in the mail. Account holders can also set up text or email alerts for new messages, including COLA notifications. That information should be out in the first or second week of November.

To receive COLA notices online, individuals must create or sign in to their personal “my Social Security” account and opt out of paper notices by November 19, 2025. Create an account at www.ssa.gov/myaccount. In addition to COLA notices, account holders can also access their Social Security card replacement request, claim status, benefits information, and SSA-1099 forms.

Information about Medicare changes for 2026 will be available at www.medicare.gov. For Medicare enrollees, 2026 premium amounts will be available via the “my Social Security” Message Center starting in late November. Those who have not opted for online notices will receive their COLA notices by mail in December.

Aging Advocacy Groups Call New COLA “Inadequate”

According to an AARP survey, conducted in Sept. 2025, even a COLA around 3% was viewed “insufficient to do the job,” says Bryan Miller, AARP Research. Only 22% of Americans age 50-plus agree that “a COLA of right around 3% for Social Security recipients is enough to keep up with rising prices,” while 77% disagree, stated, noting that this sentiment was consistent across political party affiliations, with large majorities of republicans (75%), Independents (82%) and Democrats (79%) expressing disagreement,” noted Miller in a web article published on Oct. 21, 2025.

“Nearly three-quarters (72%) of older Americans selected 5% or higher, with one quarter (25%) indicating that an 8% increase would be necessary to keep pace with rising costs. Responses to this question were consistent across political party affiliations,” adds Miller.

With the SSA’s announcement of the 2026 COLA three days later, aging advocacy groups expressed concern over the adequacy of the increase.

“Over the past year, many older Americans have been financially squeezed, and Social Security is a key to their financial stability,” said AARP Chief Executive Officer Myechia Minter-Jordan. “AARP has fought for Social Security for decades — including efforts to protect the COLA from cuts,” she said.

Nancy Altman, President of Social Security Works, echoed these concerns, noting that the COLA fails to fully address rising costs, especially healthcare. “This year, Medicare Part B premiums are projected to rise by about 11.6 percent, nearly double last year’s increase,” Altman said. “For the average beneficiary, this will consume nearly half of their COLA increase. For some, it will use up the entire COLA increase — all while the costs of other necessities, such as food and housing, continue to climb.”

Altman also pointed out that Social Security beneficiaries who are not yet eligible for Medicare and rely on the Affordable Care Act (ACA) marketplaces for insurance face even steeper challenges. “Next year, ACA premiums are expected to rise sharply, with those over 50 being hit hardest.”

Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), agreed, saying, “The 2.8% COLA will be a disappointment for many seniors struggling to cover their bills. This is the second lowest COLA since 2021 and only a slight increase from this year’s rate.” He added that the COLA doesn’t keep pace with inflation, particularly in areas where prices are rising sharply, such as medical, housing, and grocery costs.

Richtman and NCPSSM have long advocated for a more accurate COLA formula, specifically the Consumer Price Index for the Elderly (CPI-E), which would better reflect the spending patterns of older adults, who tend to allocate more of their income to healthcare and housing. “The CPI-W, which is used to calculate the current COLA, does not accurately capture seniors’ spending habits,” Richtman said.

“The 2026 COLA is going to hurt seniors. Year after year, they warn that Social Security’s meager increases won’t be enough, and the U.S. Census Bureau estimates that about 10 percent of retirement-age Americans live in poverty. However, our research suggests that the number may be higher. It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth,” states TSCL’s Executive Director Shannon Benton.

Richard Fiesta, Executive Director of the Alliance for Retired Americans calls for Congress to make strengthening and expanding social Security national priority. “If billionaires and the wealthiest 1 percent pay their fair share, we can boost benefits for everyone and guarantee the program’s solvency for future generations,” he suggests.

Fixing the COLA Formula

Social Security Works, TSCL, the NCPSSM, Alliance for Retired Americans and AARP are all calling on Congress to adopt the CPI-E to calculate COLAs. The CPI-E more accurately reflects the spending habits of seniors, particularly in categories like healthcare and housing, which are weighted more heavily in the CPI-E. Adopting this index would likely result in higher COLAs for Social Security beneficiaries.

NCPSSM’s Richtman supports several pieces of legislation that would adopt the CPI-E, including bills sponsored by Senators Bernie Sanders and Mazie Hirono, and Representatives John Larson, Val Hoyle, and Jill Tokuda. “This change is long overdue,” he said. “Instead of expecting seniors to scrape by, Congress should act now to help beneficiaries better cope with rising living costs.”

New study gives Congress a road map to fix Social Security

Published in RINewsToday on February 17, 2025

As Social Security celebrates its 90^th anniversary on Aug. 14, 2025, this essential retirement program has long been facing a significant long-term financing gap. According to the 2024 Social Security trustees report, unless Congress acts the trust funds will be depleted by 2035, forcing the program to reduce benefits by 17%.

With over 70 million retirees and individuals with disabilities receiving Social Security benefits, it is time for Congress to get serious about hammering out a viable bipartisan solution to resolving Social Security’s funding gap. And a recently released report provides the groundwork for a policy that a partisan Congress might just consider.

Last month, the National Academy of Social Insurance (NASI), AARP, the National Institute on Retirement Security (NIRS), and the U.S. Chamber of Commerce (USCC) released the results of a qualitative analysis study, on Jan. 29, 2025, detailing American views on Social Security, a federal “social safety net” program that provides income to people who are retired, disabled, or have dependents, helping them to plan for retirement and other life events.

The new, recently released, 72-page report, entitled, Social Security at 90: A Bipartisan Roadmap for the Program’s Future, is a must read for the White House and Congressional lawmakers as they begin to debate specific policies that would make long-term fixes to ensure the long-term solvency of the America’s retirement program.

The NASI survey, fielded by NORC at the University of Chicago, a nonprofit research organization, surveyed 2,243 Americans ages 21 and over.

Unlike most public opinion research on Social Security, which asks about each policy option individually, NASI says that this survey, conducted in partnership with the Washington, DC-based Greenwald Research, a firm having extensive experience in public opinion and consumer preference research, features a unique trade-off analysis that examine which combination of product features – or in this case policy changes- that consumers prefer and are willing to pay for.

The study’s findings are also largely consistent with previous NASI 2012 and 2014 studies, Strengthening Social Security: What Do American’s Want? and Americans Make Hard Choices: A Survey with Trade-off Analysis.

Sending a clear message to Washington

The NASI study’s findings indicate that Americans (across party lines, generations, income and education), strongly support Social Security and see it as the lynchpin for retirement security. Only four percent state that they do not consider it to be an important income to draw on during retirement.

Rather than ensuring the solvency of Social Security through cutting benefits, the survey respondents strongly support strengthening the program’s finances by raising revenues, noting the study’s findings. Eighty-five percent of the respondents call for benefits not being reduced, even if this means raising taxes on some or all Americans.

According to the survey’s findings, the most strongly favored option is eliminating the cap on payroll tax contributions for those earning more than $400,000 per year and their employers, who would contribute to Social Security via payroll taxes on wages above that amount. Those affected would not receive additional benefits.

Additionally, respondents across all groups, including a majority of Republicans, say they are willing to pay more themselves by gradually increasing the payroll tax rate from 6.2 percent to 7.2 percent, to strengthen the program’s finances. Workers earning less than $50,000 per year would not take financial hits. They would only contribute an additional $42 per month.

Don’t touch our benefits!

Given a broad set of policy options available to address Social Security’s financing gap, the respondents also reject benefit reductions such as keeping the full retirement age at 67 instead of further raising. Those surveyed also called for adjusting the annual cost-of-living adjustment (COLA) to more accurately reflect inflation and spending habits of older adults.

The NASI study also found that Americans want to strengthen Social Security benefits by adding a caregiver credit for workers who take time out of the workforce to care for young children and a “bridge benefit” to protect from the early claiming reduction of those in physically demanding jobs who may be unable to continue working up to full retirement age.

Finally, the study’s findings indicate that overwhelming majority of Americans (90 percent) see the need and valuable of Social Security’s disability benefits, too. These respondents say that they will need Social Security’s disability benefits if they become disabled and unable to support themselves through work, and only four percent support cutting disability benefits. The survey also finds strong bipartisan support for updating outdated rules in Supplemental Security Income, including its $2,000 asset limit.

Statements from NASI and core partners

“At a time when our country is deeply divided, Social Security remains a powerful unifying force,” said Rebecca Vallas, NASI’s Chief Executive Officer. “This survey shows there is strong bipartisan agreement on how the American people want to secure the program’s future, and we urge policymakers to listen,” she says.

“It is rare in today’s political climate to see people unite around anything,” adds AARP Chief Public Policy Officer Deb Whitman, noting that all Americans want their Social Security benefits to be preserved. They are willing to do what it takes to ensure the program continues to provide meaningful support for future generations, she says.

“Social Security is the foundation of retirement security in the United States. This report clearly indicates both the important role that Social Security plays as a source of retirement income for older Americans as well as the priority the American people place on resolving the financing gap so that benefits are not cut indiscriminately,” said Tyler Bond, NIRS’s Research Director. “This research continues a long history of finding strong support for Social Security among the public,” he says.

Finally, stated: “These survey results show that Americans value Social Security and their private sector retirement benefits because they were unwilling to cut those benefits to finance Social Security,” says Chantel Sheaks, USCC’s Vice President of Retirement Policy. “Americans think of these together, and policymakers should as well,” he suggests.

Adding their two cents

“This survey shows that Americans — Democrats, Republicans, and independents alike — absolutely do not want to see cuts to Social Security’s modest benefits,” says Nancy Altman, President of the Washington, DC-based Social Security Works.

“Instead, they want the wealthy to finally start contributing their fair share. If necessary, they are even willing to pay more themselves. Any DC politician who supports benefit cuts is wildly out of step with the American people,” she notes.

“While the study’s findings are consistent with other major surveys on Social Security during the previous years, it is remarkable that despite the current tumultuous political environment, American voters have a deep emotional bond with the program and want to ensure that Congress protects and improves their benefits without cutting them,” says Dan Adcock, director of government relations and policy at the Washington, DC-based National Committee to Preserve Social Security and Medicare.

The NASI poll sends a strong signal to members of Congress that they should support legislation, like Rep. John Larson (D-CT) and Sen. Richard Blumenthal’s Social Security 2100 Act, that would extend solvency and improve benefits by having the wealthy pay their fair share of payroll taxes,” says Adcock.

In one of President Trump’s rolling press conferences, he touched upon Social Security saying there were no cuts being proposed – if anything he would make the program stronger.

Social Security and the Ocean State

In 2022, there were more than 233,000 Social Security beneficiaries in Rhode Island, including more than 172,000 retirees, 32,000 disabled workers, and almost 14,000 children,” says NIRS’s Tyler Bond, noting that all of these Rhode Islanders face the prospect of an indiscriminate benefit cut in a decade unless Congress acts to shore up Social Security’s financing.

“This report has one clear takeaway: the American people do not want Social Security benefit cuts, and they are willing to pay more themselves to avoid those potential benefit cuts,” adds Bond.

In conclusion, the NASI report cites 84-year-old Elizabeth R. Virginia, about her personal views on America’s retirement program. “Social Security is one of the most dependable things that we have. You know that it will come again at the same time. Right now, I know the second day of every month, it is there,” she says.

As Virginia knows, she can count on receiving her monthly Social Security check. The program has never missed a payment in nine decades. Congress must now work together to ensure that this never will happen.

For a copy of NASI’s Social Security report, go to www.nasi.org/wp-content/uploads/2025/01/NASI_SocialSecurityat90.pdf

For copy of NASI’s issue brief, “America’s View on Social Security,” go to www.nirsonline.org/wp-content/uploads/2024/07/FINAL-Views-on-SS-July-2024.pdf/

For statistics on RI Social Security beneficiaries, go to Source for RI statistics, go to www.ssa.gov/policy/docs/statcomps/oasdi_zip/2022/ri.pdf.

Retirees reflect on financial fragility of retirement

Published in RINewsToday on December 9, 2024

Literally just hot off the press… the Los Angeles, California-based nonprofit Transamerica Center for Retirement Studies^® (TCRS) in collaboration with Transamerica Institute^®, released the findings of its 24 Annual Transamerica Retirement survey. Considered to be one of the largest and longest running annual surveys of its kind, its findings paint a picture of being retired in America.

Retiree life in the post-pandemic economy examines the health and well-being, personal finances, and retirement security of U.S. retirees no longer working. The report’s analysis was prepared by the research team at Transamerica Institute and TCRS. The 25-minute online survey was conducted within the U.S. by The Harris Poll on behalf of Transamerica Institute between September 14 and October 23, 2023, among a nationally representative sample of 10,002 people, including a subsample of 2,404 retirees who are retired and do not work.

Shedding light on the many facets of retirement

According to TCRS’s retirement survey, released on Nov. 26th, fewer than one in four retirees (23%) say they are very confident and able to maintain a comfortable lifestyle throughout their retirement.

“Retirement brings freedom and time for personal pursuits,” said Catherine Collinson, CEO and president of Transamerica Institute and TCRS in a statement announcing the release of the 76-page report. “However, retirees are living on a fixed income with limited financial resources. Many would be unable to withstand a major financial shock, such as the need to pay for long-term care. Retirees’ fragile financial situation serves as a cautionary tale that underscores the imperative for strengthening our retirement system,” she says.

“Many retirees may wonder what they could have done differently to save and plan for retirement, and many may feel they have done everything right but still came up short,” adds Collinson. “In reality, over their working careers, the world has changed, the retirement landscape has evolved, and the need to self-fund a greater portion of one’s retirement income has intensified,” she said.

Based on the report’s findings, retirees are active and engaged in meaningful ways. As retirees, they are:

· spending more time with family and friends (58%)

· pursuing hobbies (43%)

· traveling (36%)

· taking care of their grandchildren (19%)

· doing volunteer work (16%)

· caregiving (10%)

Although most retirees express a positive feeling about life, others say they are distressed. Most retirees say they are:

· generally happy (89%)

· have close relationships with family and friends (88%)

· enjoying life (86%)

· have a positive view of aging (79%)

· have a strong sense of purpose (79%)

· have an active social life (53%)

However, three in 10 retirees (30%) have financial trouble in making ends meet, 27% indicate they often feel unmotivated and overwhelmed, 24% often feel anxious and depressed, and 17% are isolated and lonely.

Retirees who retired before the age of 65 are cutting short their working years and income, a situation that could inevitably lead to a decrease in their retirement income. Almost six in 10 retirees say they retired sooner than planned (58%) and, among them, almost half did so for personal health-related reasons (46%) and employment-related issues (43%), while 20% did so for family-related reasons. Only one in five (21%) retired early because they were financially able.

Retirees are struggling to juggle competing financial priorities and debt, the findings indicate. Retirees’ say their current top financial priorities include

· building emergency savings (31%)

· just getting by to cover basic living expenses (29%)

· continuing to save for retirement (24%)

· paying off one or more forms of debt as a current financial priority (45%)

o paying off credit cards (30%), paying off mortgages (20%), paying off other consumer debt (10%), and paying off student loans (3%).

The survey found that the retiree’s greatest retirement fears centered around money and health issues. Forty-two percent expressed fear that Social Security will be reduced or may cease to exist in the future. Almost six in 10 retirees (58%) expect Social Security to be their primary source of income throughout their retirement, reinforcing their view that the retirement program is the cornerstone of their retirement income.

Retiring before age 65 impacts your Social Security benefit. Retirees currently receiving Social Security started at age 63 (median) which translates to a lower monthly benefit than if they had waited until their full retirement age of 66 or 67, depending on the year they were born. Only 4% of retirees waited until age 70 or later which would have maximized their monthly benefit, noted the report.

Additionally, the retirees fear declining health that requires long-term care (37%), losing their independence (32%), outliving their savings and investments (32%), and cognitive decline, dementia, or Alzheimer’s (28%).

Fear of unanticipated costly long-term care

Only 13% of retirees are very confident they would be able to afford long-term care, if needed – and only 13% have long-term care insurance, noted the findings. When asked if their health declines and they need help with daily activities and/or nursing care, almost half of retirees (48%) say they plan to rely on family members and friends to provide such care. Moreover, relatively few retirees have codified their wishes in legal documents such as powers of attorney and advance directives.

Annual Income

The survey respondents had an annual household income of $55,000 (estimated median) as of late 2023 with more than one-third of retirees (36%) having an income of less than $50,000. Retirees’ household savings excluding home equity were $71,000 (estimated median) in 2023.

Untapped opportunities might be helpful to retirees in strengthening their finances.The researchers say that retirees need to be fully engaged in financial planning or taking steps that could improve their overall situation. Only 24% indicate they have “a lot” of working knowledge about personal finance, 19% have a financial strategy for retirement in the form of a written plan, and just 7% frequently discuss saving, investing, and retirement planning with family and close friends. Only one in three (33%) use a professional financial advisor.

“Many retirees may wonder what they could have done differently to save and plan for retirement, and many may feel they have done everything right but still came up short,” said Collinson. “In reality, over their working careers, the world has changed, the retirement landscape has evolved, and the need to self-fund a greater portion of one’s retirement income has intensified.”

Thoughts about Retirement in the Ocean State

“I can confidently say there’s less road ahead to retirement than there is behind me,” quips Kemal Saatcioglu, Ph.D., associate professor and chair of the Economics and Finance Department at Rhode Island College (RIC). “Going through this report was an eye opener even for me and I came away with a mix of inspiration, awareness, and a sense of urgency,” he says.

“Asnoted in this report, the retirees’ ability to find purpose, freedom, and joy, even amid challenges shows the resiliency and flexibility we all possess, notes the RIC Professor. “Knowing that many retirees successfully navigate these waters is inspiring and is a motivator for getting into retirement planning with confidence,” he adds.

According to Saatcioglu, the report is a wake-up call for retirees. The data clearly indicates that they, in general, can be better prepared. “The statistics about limited savings, reliance on Social Security, and the lack of written financial plans might push those of us nearing retirement to re-evaluate our financial readiness. The survey data will likely create motivation to consult a financial advisor to ensure better use of available resources,” he says.

Saatcioglu calls the points about life expectancy and the length of retirement striking. “While it may be daunting at first to consider how 15 to 20 years could stretch retirement savings, prioritizing strategies for sustainability, such as long-term care insurance or budgeting for healthcare costs are great steps to take,” he says, especially the importance of mental health and stress management also encourages a more holistic view of our overall well-being.

Retirees must recognize local challenges and strengths. “Granted Rhode Island is not the most retirement friendly state. Higher costs of living, especially on housing, utilities, and food, and less than a friendly tax environment are challenges but knowing about them ahead of time and taking steps early on can mitigate those challenges,” recommends Saatcioglu.

Finally, Saatcioglu believes that the survey creates a motivation to take action—whether it’s updating financial plans, discussing retirement goals with family, or exploring community resources. Retirement can be an exciting, and rather long, stage of life, as long as proactive steps are taken now.

Maureen Maigret, Policy Advisor for the Senior Agenda Coalition, notes that the findings of the Transamerica report align with what older Rhode Islanders are concerned with in terms of their economic security, especially the cost of healthcare and housing, worries about being able to afford any needed long-term services and a lack of planning to meet those need. “Adding to those worries is uncertainty about possible proposed changes from a new federal administration for two of the most valuable programs for older adults – Social Security and Medicare,” she says.

According to Maigret, the Senior Agenda Coalition of RI (SACRI) has advocated to enhance the economic security of older Rhode Islanders. She stated that a recent SACRI survey found the costs for health care and housing were priority issues for the state’s older population. “That’s why we will continue to work in 2025 to expand the Medicare Savings Program to increase its income eligibility so lower-income older adults and persons on Medicare will be able to get their Medicare Part B premium covered and in some cases co-payments,” she says, also stressing the importance of ensurng that the housing bond funds are targeted toward developing more affordable housing options for older adults.

“I deeply appreciate the insights in this report. It highlights the importance of proactive retirement planning and the emotional and financial complexities retirees face in the post-pandemic economy,” says Josh Wells, CEO of The Retirement Factory, who stresses the importance of balancing the emotional and financial aspects of retirement.

According to Wells, retirees often feel the weight of navigating Social Security decisions or managing healthcare costs. This report underscores that many retirees are unsure about these critical choices, with only 7% frequently discussing retirement planning with family or friends and just 33% using a financial advisor. ”It’s a powerful reminder that education and open dialogue are key to achieving retirement confidence,” he says.

“Rhode Island retirees exemplify resilience and adaptability in the face of change,” says Wells. “The report highlights that 70% of retirees feel confident about maintaining a comfortable lifestyle, even amidst financial and health challenges. For Ocean State retirees, this confidence is bolstered by state-specific benefits such as the ability to exclude up to $20,000 of retirement income from state taxes for those at full retirement age and meeting income thresholds, as well as property tax relief of up to $600 for eligible seniors with limited incomes,” he says, noting that these program reflect “the state’s commitment to supporting its senior population, enabling retirees to plan carefully, stay connected to their communities, and enjoy a fulfilling retirement.”

Like the report’s findings, RI retirees are juggling competing financial priorities, especially with only a minimal 2024 increase in their ERSRI pension, says Sandra Paquette, representing the Advocates for Cost of Living Adjustment (COLA) Restoration and Pension Reform. Of equal, often ignored significance, these retirees have been deprived of 13 years of potential savings,” she says.

“By unjustly removing a COLA, the former teachers, state workers and some municipal employees have been plunged into survival mode, where limited, fixed incomes are barely sufficient to cover necessities and essentials. In many instances, choices must be made among prescriptions, heating and food– by individuals who spent a lifetime of service, and of contributing to their retirement benefits,” adds Paquette.

For a copy of Transamerica Center for Retirement Studies’ new report, go to https://www.transamericainstitute.org/research/publications/details/retiree-life-in-the-post-pandemic-economy-2024.

Herb Weiss

Aging Issues

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