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2026 COLA Watch: Another revision
Although, it’s way too early to focus on what the January 2026 Social Security cost-of-living adjustment (COLA) might be, some organizations are tracking the inflation numbers and using them as a reference point to forecast what might happen when the third quarter numbers are final. The Senior Citizens League (TSCL) is one such organization, and their most recent prognostication suggests the possibility of a 2.3% bump up. That’s a slight increase over their previous estimate, that’s the good news. The not-so-good news, though, is that TSCL highlights the projection of a continued loss of purchasing power resulting from the COLA parameters. The Motley Fool’s Trevor Jennewine, in a post on the Yahoo!Finance page, explains. Check his post out here…
And while we’re on the topic of COLA, here’s an interesting excerpt from the AMAC Social Security Guarantee that might interest readers. AMAC, as part of its recommendation package addressing the Social Security insolvency problem, recommends changes to “Modify the current COLA methodology to increase benefits by the same dollar amount for all eligible beneficiaries, where the annual dollar increase is equal to the average benefit amount adjusted by inflation.” This change would redistribute a larger portion of the calculated COLA dollars to lower-income beneficiaries and would help to address the current shortcomings cited by TSCL (and others). Read a summary of the AMAC proposal here…