Social Security COLA Will Not Even Cover Projected Medicare Increases for Older Americans

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Key Takeaways

• The 2026 2.8% cost-of-living adjustment (COLA) for Social Security benefits is not nearly enough to ensure all older adults age with economic well-being.
• Medicare premiums and deductibles are projected to increase by 4% to 12% in 2026, which will consume the entire COLA.
• Financial insecurity has devastating health impacts, with NCOA research showing that low-income older adults die an average of nine years earlier than wealthier peers.

ARLINGTON, Va., Oct. 24, 2025 /PRNewswire/ -- The following is a statement from Ramsey Alwin, President and CEO of the National Council on Aging (NCOA), on today's announcement of the Social Security cost-of-living adjustment (COLA) for 2026:

"COLA might reflect the inflation rate, but it is woefully insufficient for older Americans who already have high health care costs and are facing even greater increases in their Medicare costs in 2026. This 2.78 COLA will not even cover the projected increases in Medicare premiums and deductibles, which are expected to range between 4% and 12%. Once again, older adults will have to make heart-wrenching decisions about whether to spend their fixed incomes on health care, food, or housing.

"The poverty rate for people age 65 and older grew to 15% (more than 9 million) in 2024—the only age group experiencing an increase. This is proof that the COLA does not reflect the true cost of living for older Americans.

"We also know that poverty is a death sentence for too many older Americans. Our research with the LeadingAge LTSS Center @ UMass Boston shows that people age 60 and over who make $20,000 or less per year die on average nine years earlier than those who make $120,000 or more.

"The statistics could not be more shocking and clear. Millions of our older family members and friends who have worked hard their entire lives still face devastating economic insecurity. We must work together to create the conditions that enable every American to age well."

About NCOA
The National Council on Aging (NCOA) is the national voice for every person's right to age well. Working with thousands of national and local partners, we provide resources, tools, best practices, and advocacy to ensure every person can age with health and financial security. Founded in 1950, we are the oldest national organization focused on older adults. Learn more at www.ncoa.org and @NCOAging.

SOURCE National Council on Aging