Social Security’s cost of living adjustment (COLA) may be higher than in 2025. But retirees don't want that

Many older Americans were not happy when the Social Security Agency (SSA) announced last October that seniors would receive a 2.5% cost-of-living adjustment (COLA). The reality is that historically, 2.5% of Social Security Coke is not scary. But in recent Coke, it's small.

However, at this point, older people have lived with 2.5% of Coke for several months. Now, retirees are looking forward to 2026 and hope to get better news on Coke.

However, so far, the numbers don't look that optimistic. The non-partisan seniors' coalition recently conducted a Coke estimate for 2026. Based on inflation rates to date, it calls for a 2.3% increase in Social Security benefits in the coming year.

This is obviously not good news for those who are already unhappy with the 2.5% increase. But the 2.3% projection is by no means set by the stone. Social Security Coke in 2026 may eventually become more generous.

The Fed has been tasked with reducing inflation. To do this, it raised interest rates nearly twelve times in 2022 and 2023, and then eventually lowered some interest rates by the end of 2024.

But the Fed stopped interest rates at its last meeting and may do so when it meets again in mid-March. The reason is that inflation has always been stubborn.

That is, inflation may start to climb again in 2025. The implementation and implementation of tariffs may push up the cost of consumer goods and lead to a shortage of key products – a major recipe for inflation.

If inflation levels rise as 2026 develop, it may lay the foundation for a larger 2026 Social Security Coke. But this is not necessarily a good thing.

It is easy to see greater social security improvements as a good thing. However, since Coke is directly related to inflation, it is important to realize that larger people don’t do much to older people.

Whenever there is a greater social security coke, it follows the pace of inflation. Therefore, in an environment with minimal inflation, social security can be better provided by the elderly, and the monthly check increase is smaller.

It wasn't until October that we knew that the 2026 Social Security Coke officially looked. The reason is that COLA is calculated specifically based on third-quarter inflation readings. But it is not a bad idea for seniors with social security to prepare for smaller coke or periods of rising inflation.