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COLA Watch: Early Warning Signs for 2026
Even though the 2025 Social Security cost-of-living adjustment (COLA) isn’t through its first month, the pundits are sounding the alarm for 2026. Forecasts ranging from .06% to 2.1% are being floated based on what some believe to be a lengthy inflation cooling-off period. A morningstar.com post by Jessica Hall provides conjecture on the COLA situation, including this from The Senior Citizens League (TSCL): “Slowing COLAs risk leaving seniors behind. While slowing inflation is a good thing, it doesn’t mean prices will fall – just that they’ll rise more slowly. This leaves many seniors facing a budget shortfall.”
Ms. Hall’s post also touches on some of the potential Social Security moves being discussed by President-elect Trump, including cutting taxes on benefits and eliminating the tax on tips and overtime. Whether those measures will become a reality is anybody’s guess at this point, as is the impact they would have on Social Security’s overall solvency problem.
Read Ms. Hall’s post in full here…