An early prediction for next year’s Social Security Cost of Living Adjustment shows retirees could be in for a shock.

Data from TSCL’s 2024 Senior Survey shows 62% of older Americans worry their retirement income won’t even cover essentials such as groceries and medical bills. Will 2026's COLA increase help?

If you receive Social Security benefits, you are getting a Cost of Living Adjustment (COLA) this year. This means your retirement benefits check is going to be bigger than it was before. That's the good news.

Social Security benefits received a 2.5% cost-of-living adjustment (COLA) in 2025, but for many retirees, this is not enough to keep up with rising prices. Their monthly checks don't go as far as they used to,

The Social Security cost-of-living adjustment officially goes into effect in December of each year -- so technically speaking, the 2.5% adjustment was the 2024 COLA. However, Social Security benefits are paid one month in arrears, so the December benefit is the monthly payment that is physically received in January.

One positive aspect of Social Security is that the program is set up to adapt to economic changes. Each year, for example, Social Security benefits are eligible for an automatic cost-of-living adjustment.

For retirees, healthcare expenses are unavoidable and increasingly unaffordable. Fidelity Research says a 65-year-old retiring in 2024 can expect to spend an average of $165,000 on healthcare and medical expenses throughout retirement — a 5% jump over the previous year and more than double 2002’s estimate.

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.