2026 Social Security Update:
What the Latest COLA Estimate Means for Your Retirement Plan
At Evergreen Wealth Advisors, we keep a close eye on developments that impact your financial future—especially when it comes to retirement income. One such development is the annual Cost-of-Living Adjustment (COLA) for Social Security benefits. Based on the most recent estimate, Social Security recipients may see a 2.5% increase in their monthly benefits starting in 2026. 1
Why This Matters to You
Social Security is a key source of income for nearly 70 million Americans, many of whom are retirees who depend on these payments for essential living expenses like housing, groceries, and medical care. With inflation continuing to influence everyday costs, the COLA ensures that Social Security benefits adjust to help maintain purchasing power.
To put things in perspective, COLA increases have varied significantly in recent years:
- 2022: 5.9%
- 2023: 8.7% (one of the highest in four decades)
- 2025 and 2026 (projected): 2.5% 2
While a 2.5% increase may seem modest compared to the past few years, it’s still a meaningful adjustment that reflects current inflation trends.
What You Should Know
According to Social Security and Medicare policy analyst Mary Johnson, the estimated 2026 COLA mirrors the adjustment already set for 2025. These increases are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which gauges inflation by tracking the prices of common goods and services.
The official COLA announcement for 2026 will come in October 2025, based on inflation data from the third quarter. Until then, estimates like this one provide a helpful guide for retirees and pre-retirees planning their cash flow needs.
Looking at the Bigger Picture
Social Security is more than just a monthly check—it’s a foundational piece of your retirement income strategy. When and how you begin taking benefits can significantly affect your lifetime income, as well as your broader financial picture.
At Evergreen Wealth Advisors, we approach Social Security as one part of a comprehensive wealth management plan. The timing of your benefit, how it integrates with your investment portfolio, and the tax implications of your choices all play a role in shaping your long-term financial health.
Whether you're already receiving benefits or are evaluating your future options, now is a great time to revisit your plan.
Schedule a free phone consultation today, and let’s talk about how Social Security fits into your retirement strategy—and how we can optimize every element of your wealth plan to serve your goals.
2. https://www.newsweek.com/social-security-update-how-much-payments-could-rise-2026-2086385