KEY TAKEAWAYS
The 2026 cost-of-living adjustment (COLA) for Social Security benefits is 2.8%, resulting in an average increase of approximately $56 per month.However, many seniors and Social Security advocates argue this boost is insufficient to cover their rising expenses, such as health care services and Medicare premiums.The Trump administration has proposed removing some Americans from the Supplemental Security Income (SSI) program, which assists millions of beneficiaries whose Social Security benefits are insufficient to support them.
From the 2026 cost-of-living adjustment to proposals that would cut parts of the program, here is a roundup of important Social Security updates from last month and what they mean for you.
Why This Matters
These updates will impact all Social Security beneficiaries, who are advised to plan their budget far in advance since they are on a fixed income, and it can be hard for them to afford surprise costs.
Social Security Benefits Will Increase By 2.8% in 2026
The Social Security Administration announced the 2026 cost-of-living adjustment in October. Benefits will increase 2.8% to contend with inflation.
The COLA is calculated annually based on inflation during the third quarter, and the boost will be reflected on checks beginning in January. This adjustment is larger than the 2.5% increase for 2025 benefits, as inflation has generally heated back up this year, largely due to tariffs.
What This News Means For You
Increased Social Security benefits for 2026 will help beneficiaries afford the increasing costs of essentials like groceries and medications. The COLA will also help the many Social Security beneficiaries who have health insurance through Medicare, as parts of the program will be more expensive next year.
But COLA Won’t Be Enough For Many Beneficiaries
While beneficiaries will receive about $56 more every month next year, Social Security experts and advocates say this will not be enough to cover rising costs for retirees.
A report from The Senior Citizens League found that seniors on Social Security have lost 20% of their buying power from 2010 to 2024. And in 2026, premiums for Medicare Part B, which about 63 million disabled and older Americans use, will rise by 11.6% next year, outpacing the 2.8% increase in benefits.
Advocates suggest changing the inflation index currently used, which estimates price increases for all workers, to an index that focuses on rising costs for older Americans. The Senior Citizens League has also proposed a one-time $1,400 stimulus check for beneficiaries to make up for lagging Social Security benefits.
What This News Means For You
Now is the time for Social Security beneficiaries to begin preparing their budgets for 2026. Medicare enrollment has opened, and some beneficiaries may need to reevaluate their health insurance and find a more affordable and suitable Medicare plan.
Experts have also suggested that beneficiaries can offset the gaps in their income by downsizing to a smaller home and reducing high housing costs, returning to work, or cutting back on unnecessary expenses.
Trump Administration Looks To Cut Some Social Security Programs
To resolve the pressing Social Security funding issues, the Trump administration is exploring ways to save money, which would include cutting some current beneficiaries from certain Social Security Administration programs.
The Trump administration has promised not to cut Social Security benefits or increase the age at which Americans can receive their full retirement benefits. However, it has proposed some changes to the Supplemental Security Income (SSI) program, which provides assistance to about 7.4 million older adults and individuals with disabilities who have limited or no income.
The Social Security Administration under President Donald Trump is also looking to reverse some changes made by the Biden administration, which expanded the program to more households. The changes would remove or reduce the benefits of about 400,000 people currently receiving SSI benefits, according to estimates from the Center on Budget and Policy Priorities.
What This News Means For You
About 2.5 million Americans currently receive both Social Security and SSI benefits. If they lose their eligibility for SSI, their income would be cut by an average of about $594 a month.
Especially since many seniors say their Social Security benefits are not keeping up with their rising expenses, the cuts to SSI would put more beneficiaries in a difficult position to afford the increasing costs.