"I just wish it would be more”: What seniors are saying about the next Social Security raise

For many older Americans, “fixed income” isn’t just a financial term—it’s a way of life. Whether already retired or planning for that next chapter, making money last (and grow) is often a top priority.

With Social Security’s annual cost-of-living adjustments (COLAs) back in the spotlight—especially with the 2026 update delayed by the recent government shutdown—now is the perfect time to explore smart fixed income strategies.

Let’s take a closer look at what’s happening, what it means for your wallet, and how to make the most of every dollar in retirement.

The Social Security COLA: What’s changing and why it matters

The Social Security Administration’s 2026 COLA announcement, originally scheduled for October 15, has been delayed to October 24 due to the federal government shutdown.

Nearly 75 million Americans are waiting to see how much their monthly benefits will increase starting in January.

Early projections suggest a 2.7% to 2.8% increase—equivalent to around $54 more per month for the average retiree.

While that aligns with the long-term average, many older adults say it still falls short of what’s needed to keep up with today’s rising prices.

Kathryn Bailey, a 74-year-old retiree in Washington, DC, shared her thoughts: “I just wish it would be more.” She recalled the record-setting 8.7% COLA in 2023, which gave her about $135 more per month.

“It helped, but I used it all,” she said. “The projected increase for 2026 won’t do anything,” citing her rising costs for health care, food, and rent.

Also read: Get ready for a Social Security update: When the 2026 COLA will be announced

How COLA is calculated—and why it doesn’t always match your budget

The annual COLA is tied to inflation, specifically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). When inflation rises, the COLA tends to rise with it—and when inflation cools, so do the adjustments.

Some years, like 2016, saw no increase at all. While the 2024 COLA was 3.2% and 2025’s was 2.5%, the 20-year average sits at 2.6%.

But for many retirees, even that may not be enough. According to research from Goldman Sachs Asset Management, retirement costs have grown at an average annual rate of 3.6% since 2000—nearly a full percentage point faster than the CPI.

Certain CPI-W categories, such as vehicle insurance, maintenance, and household energy, have seen sharper increases than others.

For retirees on a fixed income, these fluctuations can make a big difference in monthly budgets.

Still, some experts believe Social Security’s COLA remains a valuable tool. “A 20% lift over four years is life changing, even though it might not match the economy itself,” said David Freitag, a financial planning consultant at MassMutual.

He noted that very few other income sources, such as pensions or annuities, offer annual inflation adjustments—and those that do often come at a high cost.

Starting at age 62, COLA increases are built into future benefits, even if you delay collecting. This ensures you don’t miss out if you choose to claim later.

Dr. Myechia Minter-Jordan, CEO of AARP, emphasized its importance. “The COLA plays a crucial role in helping retirement income keep pace with inflation and is a lifeline of independence and dignity for older Americans,” she said.

Yet, she added, “even with the COLA, 77% of older adults still face challenges covering basic expenses.”

Also read: Are Social Security increases really keeping up with your expenses?

The debate: Should we update how COLA is measured?

Some advocacy groups argue that CPI-W doesn’t accurately reflect the spending habits of retirees.

Organizations like The Senior Citizens League support switching to the Consumer Price Index for the Elderly (CPI-E), which places more weight on medical care, housing, and recreation—categories where older adults spend more.

According to Social Security’s chief actuary, using CPI-E could increase future COLAs by about 0.2 percentage points annually.

On the other hand, some proposals have called for switching to the “Chained CPI,” which accounts for consumers’ ability to substitute goods as prices rise. That method could lower COLAs by about 0.3 percentage points per year.

There are also proposals to limit annual COLA increases for high-income beneficiaries. The Committee for a Responsible Federal Budget estimates that one such approach could close roughly one-tenth of the Social Security trust fund’s projected solvency gap—while still preserving full inflation protection for most Americans.

Social Security’s trust funds are currently projected to run out by 2034.

If that happens without Congressional action, only 81% of benefits would be payable. For many, this raises questions about how COLAs will be handled in the years ahead.

Also read: Boost your Social Security income in retirement with these three smart strategies

Fixed income strategies: Smart moves for retirement planning

While Social Security’s COLA helps, it’s only one piece of the financial puzzle.

Here are a few strategies to help strengthen your income in retirement:

1. Diversify your income streams

Don’t rely solely on Social Security. You may want to explore:

• Annuities – Some include inflation protection, but be sure to read the fine print as they can be costly and complex.

• Bonds and bond funds – US Treasuries, municipal bonds, and high-grade corporate bonds can offer steady income. Laddering bonds (with staggered maturity dates) helps manage interest rate risk.

• Dividend-paying stocks – While not technically “fixed income,” many blue-chip companies steadily increase dividends to keep pace with inflation.

• Real estate investment trusts (REITs) – These can generate regular income, though they carry market risks.

2. Keep an eye on inflation

Inflation quietly erodes your spending power.

Investments like Treasury Inflation-Protected Securities (TIPS) and funds focused on inflation-resistant sectors may help preserve value.

3. Revisit your budget regularly

Health care, housing, and grocery costs can shift quickly.

Review your budget at least once a year to trim unused subscriptions and shop around for better insurance or utility rates.

Also read: Reminder: Social Security’s full retirement age is rising—here’s what to know before your next check

4. Delay Social Security if you can

For every year you delay claiming Social Security past your full retirement age (up to age 70), your monthly benefit increases by about 8%.

That’s a guaranteed return few investments can match.

5. Consider part-time work or side gigs

A flexible part-time job or freelance work can supplement your income and keep you engaged.

From tutoring to consulting—or even turning a hobby into a small business—a little extra income goes a long way.

6. Stay informed and speak up

The more we speak up, the more likely policymakers are to listen.

Keep up with changes to Social Security and Medicare, and don’t hesitate to contact your lawmakers about the issues that matter most to you.

There’s no one-size-fits-all solution in retirement. The best fixed income strategy is the one that fits your lifestyle, goals, and comfort with risk.

Social Security’s COLA is an important tool, but it’s just one part of the bigger picture.

Read next:

• Don’t overlook these 3 Spousal Social Security secrets every retired couple should know
• 11 government jobs that offer older Americans stable income, great benefits—and no age limits
• Why retirement savings feel harder than ever—and how Americans are adapting

Key Takeaways

• The Social Security 2026 cost-of-living adjustment (COLA) announcement has been delayed to October 24 due to a US government shutdown, with the increase expected to be around 2.7% to 2.8%—adding about $54 to the average monthly retirement payment.
• Many retirees say the anticipated increase may not be enough to keep up with the rising cost of essentials like health care, rent, and groceries, as the cost of retirement has outpaced inflation in recent decades.
• Experts and advocacy groups argue that the current COLA formula may not fully reflect older Americans’ expenses, with some pushing for a shift to the CPI-E index, while others propose trimming increases for wealthier recipients.
• Social Security’s trust funds are projected to run out in 2034, with 81% of benefits payable unless reforms are enacted—prompting ongoing debate over how COLAs are calculated and distributed.

Have you found ways to stretch your retirement income or grow your nest egg? Do you think the COLA formula should change?

Share your tips, experiences, or questions in the comments below—we’re all in this together.