Social Security recipients rely on cost-of-living adjustments (COLAs) to maintain their purchasing power against inflation. The Congressional Budget Office (CBO) predicts a 2.4% increase for 2026, marking the smallest raise since 2021, although this forecast was made before significant tariff hikes under the Trump administration, which may lead to increased inflation. Consequently, the Social Security Administration’s actual COLA for 2026 could exceed current expectations due to the evolving economic climate.
