Social Security benefits increase 2.8%: Retirees get a $56 monthly boost; seniors say hike not enough – The Times of India

The Social Security Administration announced Friday that benefits will increase 2.8% in 2026, giving retirees an average monthly increase of more than $56. The increase reflects moderating inflation after several years of higher cost-of-living adjustments (COLA).The increase will take effect in January for nearly 71 million Social Security recipients, while about 7.5 million people receiving Supplemental Security Income will see higher payments starting Dec. 31.The announcement, scheduled for last week, was postponed due to the US federal government shutdown.Recipients saw a 2.5% increase in 2025 and a 3.2% increase in 2024, following a historic 8.7% increase in 2023, driven by record high inflation. The COLA is funded by payroll taxes collected from employees and employers, with an annual salary cap that will increase from $176,100 in 2025 to $184,500 in 2026.Social Security Commissioner Frank Bisignano said in a statement that the annual adjustment is “one of the ways we are working to ensure that benefits reflect current economic realities and continue to provide a foundation for security.” However, many seniors believe the increase will not be enough to cover rising costs of living, AP reported.AARP polls show that many older Americans share these concerns. Only 22% of Americans over 50 believe a COLA of about 3% is enough to keep up with inflation, while 77% disagree. According to the MIT Living Wage Calculator, a single adult living in Florence, South Carolina spends approximately $10,184 annually on housing, $3,053 on medical expenses and $3,839 on food.Emerson Sprick, director of pension and labor policy at the Bipartisan Policy Center, said in a statement that cost-of-living increases “cannot solve all the financial challenges households face or all of the program’s shortcomings.”The latest adjustment comes as the Social Security Administration faces internal challenges and uncertainty about the program’s long-term future. In July, Treasury Secretary Scott Bessent said the Republican administration was committed to protecting Social Security, hours after comments suggested that a new child savings program signed by President Donald Trump was “a backdoor to the privatization of Social Security,” as quoted by AP.