pabradyphoto / iStock via Getty Images Quick Read The Fed cut rates by 0.25% in December 2025 with a 9-3 vote split and signaled future cuts may pause. Early projections suggest the 2027 Social Security COLA could fall to 2.3% to 2.6% range. A 2.3% COLA would mark the smallest Social Security increase since 2020. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here. The Federal Reserve had its last mee ...

Steve Heap / Shutterstock.com Quick Read Social Security COLAs are tied to CPI-W inflation data from July through September, not to Federal Reserve interest rate decisions. The 2026 COLA is locked at 2.8% and will not change due to recent Fed rate cuts. Lower rates could stimulate spending and raise inflation in 2026, potentially increasing the 2027 COLA. A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more her ...

The reason that the buying power of benefits has fallen is that Social Security Cost of Living Adjustments (COLAs) have done a poor job in keeping pace with inflation. Cost of Living Adjustments (COLAs) are supposed to make sure that doesn't happen, but the formula estimates inflation by looking at a consumer price index, CPI-W, that doesn't accurately measure inflation impacting retirees. The issue is that it's built around the spending habits of urban wage earners and clerical workers. Since retirees tend ...