Delayed Social Security benefit increase until 2026 could erode retirees' buying power

Inflation is rising, but retirees won’t see a Social Security benefit increase until 2026. The key inflation metric used doesn’t fully reflect retirees’ higher costs, leading to a potential erosion of buying power. The 2026 COLA is projected to be 2.5%, up from 2.4%, due to slowly rising inflation. However, suspect data collection this year could impact the accuracy of the calculation. With higher prices now and delayed benefits, retirees could face a no-win scenario. The CPI-W metric used for the calculation may not accurately reflect retirees’ expenses, potentially leading to a smaller benefit increase than needed.

Read more at NASDAQ.: Social Security’s 2026 COLA Is Shaping Up to Be a No-Win Scenario for Retirees