Here's How Much the Annual COLA Added to the Average Social Security Retirement Benefit Last Month
The Motley Fool
by newsfeedback@fool.com (Adam Levy)February 20, 2026
AI-Generated Deep Dive Summary
The annual cost-of-living adjustment (COLA) for Social Security retirement benefits increased in January, providing much-needed support to seniors navigating rising costs. This adjustment is particularly significant as 62% of retirees rely on Social Security as their primary income source, the highest share recorded in Gallup's 24-year history. The COLA reflects inflation from the previous year and helps mitigate the financial strain caused by higher prices.
In recent years, elevated inflation rates have led to more substantial COLA increases. While these adjustments aim to keep pace with living expenses, they also highlight the program’s critical role in ensuring financial stability for retirees. Social Security remains a cornerstone of retirement planning, particularly as traditional sources of income like pensions decline.
For those following finance and investing, understanding COLA changes is essential for budgeting and long-term financial strategies. As inflation dynamics shift, the program’s adjustments will continue to play a key role in supporting seniors’ livelihoods. This underscores the importance of monitoring Social Security updates, especially for retirees and those approaching retirement age.
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Originally published on The Motley Fool on 2/20/2026