Tens of millions of Americans rely on Social Security benefits for a substantial portion of their retirement income. Not only is Social Security a valuable source of retirement income, with the average retired worker receiving about $1,975 per month, but it is also the only inflation-protected source of income many retirees have.

The non-partisan advocacy group The Senior Citizens League predicts the 2026 COLA will be 2.1%, based on data from the Bureau of Labor Statistics’ CPI-W, the index used to calculate the annual increase. December’s CPI-W came in at 2.8%. Getty Images

Without Social Security, millions of Americans would be living below the poverty line. With it, many don't -- even though the average monthly retirement benefit of $1,975 (as of December) is not all that huge.

Recipients of Social Security received an increase in benefits in 2025, as they do every year. However, new economic data and policies could spell trouble.

Data from TSCL’s 2024 Senior Survey shows 62% of older Americans worry their retirement income won’t even cover essentials such as groceries and medical bills. Will 2026's COLA increase help?

It's far too early to know what next year's Social Security cost-of-living adjustment might be. However, based on several inflation estimates, it's possible to make an educated prediction. In this video, Certified Financial Planner® Matt Frankel discusses what he foresees for Social Security recipients in 2026.

Selling a home in retirement doesn't inherently disqualify you from Social Security benefits, but there are some things you should know.