Social Security’s 2.8% COLA Trails 28.4% Gas Jump, Squeezing $2,071 Retiree Benefits
Updated
Updated · The Motley Fool · May 27
Social Security’s 2.8% COLA Trails 28.4% Gas Jump, Squeezing $2,071 Retiree Benefits
6 articles · Updated · The Motley Fool · May 27
$56 a month is all the 2026 Social Security COLA added to the average retirement benefit, lifting it to $2,071 even as many retiree costs rose faster.
Medicare Part B premiums climbed 9.7% in January, while April data showed gasoline up 28.4%, electricity 6.1%, shelter 3.3% and food 3.2% over 12 months.
The mismatch stems partly from how COLA is set: the SSA uses CPI-W data only from July through September, leaving the 2026 adjustment based on a narrow 2025 snapshot.
That formula is already criticized for understating retirees’ real expenses, but the government has not switched to a retiree-focused index as the next COLA review starts in July.
With global conflict driving inflation, how can retirees hedge their finances against a Social Security check that keeps shrinking in value?
As Social Security's trust fund nears depletion, which reform offers the most realistic hope for retirees' financial future?