Social Security’s annual cost-of-living adjustment (COLA) helps keep retirees afloat as inflation erodes purchasing power. But this year, it’s sparking some anxiety. Millions of Americans are facing tough questions about how to stretch their money with a modest 2.

Starting in January, Social Security recipients saw a 2.5% increase in their monthly payments as the annual cost of living adjustment (COLA) took effect. Benefits for February were sent out Wednesday. Social Security payments are sent on the second, third and fourth Wednesday of the month, depending on the recipient's birth date.

The actual cost-of-living-adjustment won't be announced until October, but early predictions say the increase will be a smaller percentage than the 2025 increase.

More than 68 million Americans receive a Social Security benefit. Of those beneficiaries, 53,595,000 are aged 65 or older and 51,773,000 are retired workers. For those who haven’t retired yet, more than four in five expect to rely on that check in retirement to some degree.

If you are a Baby Boomer who feels like your Social Security benefit doesn’t quite stretch far enough, there’s a very good reason for that. Your benefits have been losing ground for decades and, had they kept pace with inflation,

The nonpartisan Senior Citizens League expects the COLA to be 2.3% for 2026, based on a forecast that inflation will drop throughout the coming year. Another forecast by independent Social Security and Medicare analyst Mary Johnson puts the expected COLA increase at 2.1%.

This year brings several significant changes to Social Security, affecting nearly 68 million beneficiaries. From cost-of-living adjustments to increased maximum benefits, these updates are crucial for those relying on Social Security,