77% of Older Americans Say the 2026 Social Security COLA Is Not Enough—Here’s What You Can Do About It

Social Security recipients will see their monthly checks increase by 2.8% in 2026, the Social Security Administration has announced. For the average retiree collecting $2,008 per month, the COLA translates to an additional $56, bringing their monthly benefit to $2,064.

But most older Americans say that’s still not enough: 77% told AARP the increase doesn’t keep pace with rising prices, a rare issue that cuts across party lines.

Here’s why older Americans feel the 2026 COLA falls short—and what you can do about it.

Why Social Security’s COLA Doesn’t Cover What Retirees Might Need

The perception gap stems in part from how household budgets differ across age groups and employment status. Social Security calculates its annual COLA using the Consumer Price Index (CPI) for urban wage earners and clerical workers, which tracks price changes for employed individuals living in urban areas.

Many older adults say they need much more. When asked by AARP what increase would help them afford everyday living expenses, 72% said they need a bump of 5% or higher, and 26% said they’d need a full 8% just to keep pace with their real costs.

“For retirees who rely heavily on Social Security, even a small gap between the COLA and real living costs can make a difference,” Gina Seibert, chief financial officer at PSECU, told Investopedia. “Over time, those shortfalls can lead to dipping into savings sooner or cutting back on discretionary spending to manage essentials like housing, food, and medical expenses.”

How To Bridge the Gap Between COLAs and Rising Costs

Given the difference between the official COLAs and perceived cost increases, financial experts recommend several strategies for current and future retirees.

Consider Delaying Benefits

For every year someone delays receiving benefits beyond their full retirement age (typically 67 for those born in 1960 or later), their benefit increases by about 8%, up until age 70. Someone who waits until 70 instead of claiming at 67 would receive about a quarter more every month for life, and future COLAs would increase based on that higher amount.

Diversify Income Sources

“Reviewing your budget regularly and prioritizing essential expenses is key to maintaining stability,” Seibert said. “Retirees can also look for ways to supplement income—whether through part-time work, investment earnings, or community resources designed to support older adults.”

Financial advisors generally recommend aiming for total retirement income—including Social Security, pensions, and personal savings—to replace about 70% to 80% of pre-retirement earnings. Social Security typically replaces between 35% and 40% of the average worker’s pre-retirement income, meaning retirees need additional sources to fill the gap.

Building a diversified portfolio that includes 401(k)s, individual retirement accounts (IRAs), pension income, and taxable investment accounts can provide a buffer when COLAs fall short of actual cost increases.

Reduce Fixed Expenses Before Retirement

With housing representing such a large portion of retirees’ budgets, reducing or eliminating housing costs before retirement can ease many budgetary issues you’re facing.

Manage Debt

“Paying down high-interest debt and using budgeting tools can make managing monthly finances easier and more predictable,” Seibert said.

The Bottom Line

Social Security’s 2026 COLA of 2.8% will provide some inflation help for about 70 million beneficiaries. However, the vast majority of older Americans surveyed by AARP said it’s not enough.