The 2.8% COLA for 2026 won’t alleviate concerns for 39% of middle-class Americans who fear possible Social Security benefit cuts. Retirees note that annual COLAs haven’t kept up with real-world costs. The modest $56 increase per month may not ease deeper worries about the program’s future. The Transamerica Center for Retirement Studies reports that nearly half of those in their 50s and 60s fear Social Security cuts or its disappearance as their primary income source. Inflation concerns persist, as many older households feel COLAs don’t accurately reflect rising essential costs like healthcare and utilities, leading to a loss in buying power since 2010. To address worries, consider stress-testing your retirement plan, delaying claiming benefits, maximizing non-Social Security income, diversifying income streams, and coordinating withdrawals and taxes. Only 29% of those in their 60s report a high level of personal finance knowledge, highlighting the importance of seeking advice from financial advisors. A 2.8% COLA won’t solve the underlying issues of inflation and policy uncertainty eroding Social Security’s purchasing power. Planning, delaying claims, diversifying income, and stress-testing your budget can provide more security in retirement.

Read more at Yahoo Finance: The Growing Middle-Class Retirement Concern Social Security COLA Isn’t Fixing