The 2026 COLA is estimated to be around 2.3%, making the prediction 0.2% lower than last year’s COLA of 2.5%, according to the Senior Citizens League. (Catherine Delahaye/Getty Images)Getty Images
Social Security benefits may see an adjustment in 2026, and the impact could be significant.
The latest cost-of-living projection shows that seniors could see a decrease in Social Security benefits.
The 2026 COLA is estimated to be around 2.3%, making the prediction 0.2% lower than last year’s COLA of 2.5%, according to the Senior Citizens League.
This may seem like bad news for retirees currently affected by inflation. However, some legislators in Congress are looking to amend the situation.
Initially proposed in 2023, Rep. Thomas Massie of Kentucky has reintroduced the Senior Citizens Tax Elimination bill to eliminate income taxes on Social Security benefits, reducing many senior citizens’ tax burden.
“Eliminating taxes on Social Security benefits would be an excellent step to provide financial relief to American seniors, many of whom are struggling with a cost of living that is growing much faster than their incomes. It would also reduce double taxation, which is inherently unjust,” said TSCL Executive Director Shannon Benton.
The average monthly benefit as of January 2025 is $1,837.91, according to the Social Security Administration.
The Senior Citizens League estimated that eliminating taxes on Social Security benefits would save the typical senior household about $3,000 annually if implemented in 2025.
The official 2026 COLA will be announced in October 2025, as it is based on inflation data from the third quarter of the year.
If you purchase a product or register for an account through a link on our site, we may receive compensation. By using this site, you consent to our User Agreement and agree that your clicks, interactions, and personal information may be collected, recorded, and/or stored by us and social media and other third-party partners in accordance with our Privacy Policy.