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A Reflection on the 2026 COLA - Nasdaq.com
The recent announcement of a 2.8 percent cost-of-living adjustment (COLA) for Social Security benefits has been widely panned as inadequate given the economic environment seniors face. Sure, it’s more than last year’s 2.5 percent, but many pundits note that the spending categories seniors face continue to grow faster and cite the need for a different, more senior-friendly measurement tool.
While all of that may be true, one positive is overlooked. As suggested in a Nasdaq.com post today by The Motley Fool’s Maurie Backman, the lower-than-historical-average COLA figure obscures the fact that “A less generous COLA means less rampant inflation.” In her post, Ms. Backman notes the implications of higher COLAs and opens the door for discussion on more accurate measurement approaches. Read her post in full here.