The National Council on Aging says the 2026 Social Security COLA of 2.8% falls short of covering rising Medicare costs.
Older Americans face increasing poverty, with 15% of people aged 65+ living below the poverty line.
The NCOA urges stronger action to ensure all Americans can age with dignity and financial security.
The National Council on Aging (NCOA) is warning that the newly announced 2.8% cost-of-living adjustment (COLA) for Social Security in 2026 will not be enough to offset the growing expenses faced by older Americans, especially when it comes to health care.
In a statement, NCOA President and CEO Ramsey Alwin said that while the COLA mirrors inflation, it is “woefully insufficient” for seniors struggling with higher Medicare premiums, deductibles, and everyday living costs.
“Older adults will once again be forced to make heart-wrenching decisions about whether to spend their fixed incomes on health care, food, or housing,” Alwin said. Medicare costs are expected to rise between 4% and 12% next year—far outpacing the COLA increase.
Growing poverty among older adults
Alwin pointed to alarming data showing that the poverty rate among people aged 65 and older climbed to 15% in 2024, affecting more than 9 million Americans. This makes older adults the only age group to experience an increase in poverty that year.
“The poverty rate for older Americans is proof that the COLA does not reflect the true cost of living,” Alwin said. “We also know that poverty is a death sentence for too many.”
NCOA’s research, conducted in partnership with the LeadingAge LTSS Center at UMass Boston, underscores that link: people age 60 and older earning $20,000 or less per year die an average of nine years earlier than those making $120,000 or more.
A call for change
Alwin urged policymakers and the public to address the structural inequities that continue to harm aging Americans.
“Millions of our older family members and friends who have worked hard their entire lives still face devastating economic insecurity,” she said. “We must work together to create the conditions that enable every American to age well.”