As of 2026, Social Security beneficiaries will receive a 2.8% Cost-of-living adjustment (COLA) added to their monthly benefits. As per the Social Security Administration (SSA), this works out to approximately $56 more per month.
When we hear the word “increase”, it sounds like good news right? Unfortunately, when you look more into, it doesn’t really seem like much. The reason for this is because the small increase isn’t enough to keep up with the increase in the cost of living.
The government uses a formula that does reflect the true spending pattern of seniors, therefore even though Social Security benefits are increasing, it does stretch as far as it used to.
The good news is that there are a few practical ways to improve your finances:
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Build or Rebuild Personal Savings — Your Financial Safety Net
Beneficiaries need to understand that relying solely on Social Security is not best option. Social Security is mean to cover a portion of your retirement income and not the entire thing. For this reason, having personal savings is extremely important.
If you’re still working, try to set aside even a small portion of your income.
- A high-yield savings account, which pays more interest than traditional accounts.
- A Roth IRA, which allows tax-free withdrawals later in life.
- Low-risk investments or certificates of deposit (CDs) for consistent returns
If you are already retired, consider cutting down your expenses to make what you currently have, last longer
- Consider relocating to a more affordable area.
- Try to pay off debt such as credit cards and accounts, so you can then keep this money aside.
- Relook at your budget and consider cutting down on unnecessary expenses.
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Consider Part-Time Work — Earn Extra Without Losing Benefits
There are many retirees who are looking into part-time work to increase their income. This helps you stay active as well as provides with a little extra money to cover daily expenses.
For those who have already reached Full Retirement Age (FRA), you can earn as much as you want without your Social Security benefits being reduced.
Here are a few part-time job ideas that work well for retirees:
- Consulting or freelance.
- Remote jobs.
- Online tutoring or teaching.
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Explore Additional Government Benefits — The “Second Check” You Might Qualify For
There are some people who work physical demanding jobs and cannot work for more than a stipulated period. There is another government program that you may qualify for.
It is referred to as Supplemental Security Income (SSI). Seniors with low incomes and resources, as well as those who are disabled, can receive monthly cash payments from SSI.
SSI does not depend on your work history like Social Security does. The amount you receive does depend on your income, assets and living situation, but if you do qualify, the extra income can help you significantly.
You may also look into other programs such as the SNAP program which offers food assistance to cover grocery costs. Be sure to read the fine print and check your eligibility
The Bottom Line: Be Proactive About Your Retirement Income
Even though the 2.8% Social Security increase might sound like good news, retirees are concerned that it just won’t be enough to cover their actual expenses. The cost of living is increasing faster than benefits are rising.
With that being said, it’s important for retirees to have a plan of action to secure their finances.
The best way to protect yourself is to take action:
- Look into other personal savings and investment options.
- Consider part-time work to boost your monthly income.
- Look into other government assistance programs.
If you need to, consult with a financial advisor to provide assistance with financial decision making. You need to take responsibility for your retirement years.