2026 Social Security COLA Increase: Here's What Retirees Ages 62-80 Will Actually Receive

The 2.8% Boost Sounds Good—Until You Do the Math

Starting in January, the 2026 social security cola increase will push benefits up by 2.8% for all retirees. Sounds promising, right? Here’s the catch: most seniors say it won’t keep pace with what they’re actually spending on food, housing, and healthcare.

The Social Security Administration calculates this annual adjustment using the Consumer Price Index for Wage Earners and Clerical Workers (CPI-W), which monitors price changes across over 200 goods and services. The formula is straightforward—take the average year-over-year inflation spike during summer months, and that percentage becomes next year’s COLA. For 2026, that calculation landed at 2.8%.

While this marks an improvement from 2025, retirees are hitting a harsh reality: housing, utilities, and medical expenses are climbing much faster than 2.8%. Since these categories consume a much larger share of seniors’ budgets compared to younger workers, many feel increasingly squeezed despite the “raise.”

What Retirees Are Actually Getting—And Losing

The money hitting Social Security beneficiaries’ accounts varies dramatically by age. Here’s the real picture:

Retirees who claimed at 62 currently receive around $1,377 monthly, which translates to a $38 bump from the 2026 social security cola increase. By contrast, those who delayed until 70 average $2,187—a $61 increase. The pattern shows a clear advantage to waiting: each year of delay boosts your base amount, so your COLA percentage kicks off a higher foundation.

However—and this is the painful part—beneficiaries age 65 and older enrolled in Medicare face an immediate haircut. The government automatically deducts Part B premiums from their Social Security checks. In January 2026, these premiums jump by $17.90 monthly for most seniors. That single deduction wipes out nearly half of the average retiree’s COLA increase.

Consider a 70-year-old receiving $2,187 monthly. The 2026 cola brings a $61 increase—but Medicare premiums take back $17.90, leaving a net gain of just $43. That’s a 70% erosion of the government’s “benefit raise.”

The Age-by-Age Breakdown

As people advance through their 60s and 70s, the pattern holds consistent: benefits peak for those claiming at 70, then gradually decline for older cohorts. This happens because average earnings in the economy have grown faster than historical COLA adjustments, creating a kind of reverse effect for the oldest beneficiaries.

The 2026 social security cola increase scales proportionally: someone at 65 moves from $1,612 to $1,658, while an 80-year-old shifts from $2,038 to $2,095. Across all age groups, the nominal gain hovers between $38-$61 monthly—meaningful on paper, negligible against actual cost increases.

Why This Matters Beyond the Numbers

The structural issue exposed here runs deeper than arithmetic. Medical expenses and housing costs—the biggest budget items for seniors—are inflating at roughly double the overall rate that triggers COLA calculations. A 2.8% adjustment was designed for an era when retirees spent their money more like the general population.

Today’s seniors disproportionately face the sectors experiencing steepest price growth, making the static COLA formula increasingly misaligned with their real expenses. Add in the Medicare premium grab, and the 2026 social security cola increase amounts to a step backward in purchasing power for millions already living on tight budgets.

The takeaway: while 2026 brings a boost in nominal dollars, the combination of slower COLA growth and accelerating healthcare costs means many retirees will feel the pinch continue through next year.