‘Aging Into Poverty’ Despite Social Security Recipients To See 2.8% Benefit Increase In 2026

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The Social Security Administration (SSA) announced that benefits will rise by 2.8% in 2026, reflecting a higher cost of living.

This increase comes after President Donald Trump delivered on his promise to strengthen Social Security, implementing sweeping reforms that have dramatically reduced wait times and improved services for 72 million beneficiaries, as previously reported by The Dallas Express.

The increase marks a slight uptick from last year’s 2.5% adjustment but remains below the historical average of 3.7%.

The SSA said individual retirement benefits will grow by about $56 per month on average.

The annual cost-of-living adjustment (COLA) is calculated using inflation data from July through September. The adjustment aims to help beneficiaries keep up with rising expenses, though many say it falls short.

Jessica Johnston, senior director of the Center for Economic Well-Being at the National Council on Aging (NCOA), said the government’s method of calculating the adjustment fails to capture the true costs older Americans face.

“The index doesn’t necessarily reflect the spending habits of older adults,” Johnston said, according to NBC News. She added that “a 4% adjustment would more accurately reflect these costs.”

Advocates argue that the current formula overlooks essential expenses like medical care, prescription drugs, rent, and home energy costs, all of which take up a larger share of seniors’ budgets.

More than one in five Americans receives Social Security, including around 58 million people aged 65 and older. While inflation has cooled from its 2022 peak near 10%, households across the country still report feeling squeezed by higher prices.

Recent data show that older Americans are facing growing economic insecurity.

Between 2018 and 2023, seniors were the only demographic to experience an increase in poverty rates, though their overall rate remains lower than that of younger groups.

An NCOA report found that mortality rates among older adults in the bottom 60% of wealth are nearly double those in the top 20%. Individuals in the lowest wealth bracket die nine years earlier on average than their wealthier peers.

The NCOA also estimates that 45% of older households cannot cover basic living expenses, while 80% would struggle to recover from major financial shocks such as illness or widowhood.

Johnston noted that while Baby Boomers hold about $85 trillion in assets, the older Silent Generation owns only about $20 trillion — leaving many “aging into poverty.”