The most anticipated day of the year is rapidly approaching for the more than 67 million beneficiaries who rely on Social Security.
On Oct. 15, the Social Security Administration (SSA) will reveal what’s expected to be a flurry of changes to the program in 2026, including the most prominent of all — the cost-of-living adjustment (COLA). With most retired workers reliant on their monthly check, in some capacity, to meet their expenses, knowing how much they’ll receive in the upcoming year is of paramount importance.
Social Security’s 2026 COLA could make history for the first time in nearly three decades, but signs point to most beneficiaries facing something of a double whammy next year. Here’s how Georgians on Social Security could be affected.
How much do Georgians receive from Social Security COLA?
Before we look at the forecasted COLA increase and how a 1-2 punch could wipe it out, let’s look at how many people in Georgia could be affected.
According to the SSA website, Georgians who are beneficiaries received about $3.4 billion in total payments each month in 2023. Just under 2 million Georgians were beneficiaries of Social Security. That included:
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Retired workers (1,451,725)
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Disabled workers (243,954)
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Widows, widowers, and parents (109,731)
Does Georgia tax Social Security benefits?
The answer is no, according to the Georgia Department of Revenue. However, nine states do tax Social Security, according to Kiplinger.
What purpose does Social Security’s COLA serve?
The COLA is a tool at the SSA’s disposal that helps beneficiaries fight back against the effects of inflation.
Hypothetically, if the collective cost for a broad basket of goods and services regularly purchased by seniors were to rise by 3% from one year to the next, Social Security benefits would also need to increase by the same percentage to avoid a loss of buying power. Social Security’s cost-of-living adjustment is the “raise” beneficiaries receive in most years to help counteract the impact of inflation on their purchasing power.
Beginning in 1975, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) became the program’s inflationary yardstick, which allowed for annual COLAs to be passed along, if necessary. Before then, Congress arbitrarily passed benefits increases during infrequent special sessions. (For instance, there wasn’t a single benefit adjustment during the 1940s, which was followed by the largest-ever COLA of 77% in 1950.)
On paper, Social Security’s 2026 cost-of-living adjustment should make history
Based on multiple independent estimates, the 2026 COLA should make history by reaching or surpassing 2.5% for a fifth consecutive year. The last time beneficiaries received at least a 2.5% payout bump for a half-decade was a 10-year stretch from 1988 through 1997, during which COLAs varied between 2.6% and 5.4% on an annual basis.
Following the release of the August inflation report, nonpartisan senior advocacy group The Senior Citizens League (TSCL) held firm on its 2026 COLA forecast of 2.7%. Meanwhile, independent Social Security and Medicare policy analyst Mary Johnson upped her estimate by a tenth of a percent to 2.8%.
If TSCL’s estimate proves accurate, the average retired-worker beneficiary would see their monthly payout climb by $54 in 2026. As for workers with disabilities and survivor beneficiaries, the average benefit would increase by approximately $43 per month, respectively.
Potential double whammy awaits many of Social Security’s 70 million beneficiaries in 2026
Things look great on paper, but the practical application of Social Security’s 2026 COLA is a long way from perfect.
The first problem that aged beneficiaries are going to run into is an expected loss of purchasing power. According to a TSCL analysis released last year, the buying power of a Social Security dollar fell 20% from 2010 to 2024.
The CPI-W generally does a poor job of accounting for the expenses that matter most to seniors. It’s an inflationary index tasked with tracking the spending habits of “urban wage earners and clerical workers,” who in many instances are working-age Americans not currently receiving a Social Security benefit. These folks spend their money quite differently from the 87% of Social Security recipients who are 62 or older.
The second part of the double whammy pertains to seniors dually enrolled in Social Security and traditional Medicare. Most of these dual enrollees have their Part B premium, which is the segment of Medicare responsible for outpatient services, automatically deducted from their monthly benefit.
According to estimates in the Medicare Trustees Report, the Part B premium is expected to rise in 2026 to $206.20 per month (up more than 11%). This follows more modest increases of 5.9% in back-to-back years. Most aged beneficiaries will see some or all of their 2026 cost-of-living adjustment offset by this sizable jump in the Medicare Part B premium.
How much will your Social Security benefit be? Use a Social Security COLA calculator
Miguel Legoas is a Deep South Connect Team Reporter for Gannett/USA Today. Find him on Instagram @miguelegoas and email at mlegoas@gannett.com.
This article originally appeared on Savannah Morning News: Social Security COLA could be wiped out in 2026. How it affects Georgia
