2026 COLA raised benefits to $2,071, but high taxes and inflation limit real gains, with 2027 COLA possibly as low as 1.2%.

The 2026 Social Security COLA raised the average monthly benefit to $2,071, but up to 85% of the increase may be taxed, limiting real spending power due to outdated tax thresholds. Inflation in healthcare and housing outpaces overall CPI, worsening financial strain. Early projections suggest the 2027 COLA could be as low as 1.2%, a sharp drop from recent years, potentially failing to keep up with essential costs. Final figures will be announced in October 2026.