If you’re retired and living in San Diego, even small changes to your Social Security benefits can have a meaningful impact—especially as everyday costs continue to shift. For 2026, Social Security benefits are set to increase with a 2.8% Cost-of-Living Adjustment (COLA). While it might not seem like a massive jump, this adjustment is designed to help your income keep pace with rising prices and ease the pressure of day-to-day expenses. Here’s what it means for you and how to make the most of it.
What is COLA?
COLA, or Cost-of-Living Adjustment, is an annual increase to Social Security benefits intended to help retirees manage inflation. In other words, it’s Social Security’s way of helping your money go a little further as prices for groceries, healthcare, utilities, and housing change.
For 2026, the 2.8% COLA reflects the latest trends in inflation and cost-of-living changes across the country. While modest, it continues a long-standing effort to maintain the purchasing power of your benefits over time.
How the 2026 COLA Affects Your Social Security
Starting in January 2026, your Social Security check will reflect the 2.8% increase. Here’s an example: if you currently receive $1,500 per month, the new COLA adjustment adds about $42, bringing your monthly total to $1,542. Over the year, that adds up to roughly $500 extra—helpful for offsetting rising costs and unexpected expenses.
Tips to Make the Most of the COLA Increase
Even a small bump can go a long way with the right approach. Here are a few smart ways to stretch your 2026 benefits further:
- Revisit Your Budget:
Take a fresh look at your monthly expenses. With rising costs in healthcare, groceries, and utilities, this is a great opportunity to see where your COLA increase can make the biggest impact. - Save Where You Can:
Even modest adjustments like trimming discretionary spending or setting aside a little extra each month can build up over time and give you greater flexibility. - Review Your Medicare Coverage:
Healthcare costs are a big part of retirement expenses and the right coverage can make a significant difference. To help you stay informed, Mission Fed has partnered with Silvur Insurance to offer no-cost Medicare consultations. These sessions can help you compare plans, understand benefits, and make confident choices that fit your healthcare and financial needs.
Planning Beyond the COLA
The 2026 COLA is a helpful boost, but it’s also a reminder to stay proactive about your overall financial health. Whether you’re already retired or preparing to retire soon, reviewing your savings, benefits, and healthcare options can help you stay ready for whatever comes next.
At Mission Fed, we’re here to support you on your retirement journey—from managing your Social Security income and everyday finances to planning ahead for future needs. Our partnership with Silvur Insurance is just one more way we’re helping San Diegans make confident, informed decisions about their financial and personal well-being.
This is a solicitation for insurance. The content provided in this blog consists of the opinions and ideas of the author alone and should be used for informational purposes only. Mission Fed Credit Union disclaims any liability for decisions you make based on the information provided. References to any specific commercial products, processes, or services, or the use of any trade, firm, or corporation name in this article by Mission Fed Credit Union is for the information and convenience of its readers and does not constitute endorsement, control or warranty by Mission Fed Credit Union.
