The Social Security Administration made the announcement following the release of Consumer Price Index inflation data, which showed that inflation rose at an annual rate of 3% in September.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” SSA Commissioner Frank Bisignano said Friday. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
According to SSA numbers, the COLA increase has averaged around 3.1% over the last ten years.
Meanwhile, experts across the political spectrum have been warning about the upcoming depletion of the Social Security trust fund, now projected to happen as soon as 2032. Once insolvency occurs, recipients could see a benefit cut as high as 24%, reversing over a decade’s worth of COLA increases.
Congress is in no position to unilaterally boost benefits, with the U.S. national debt topping $38 trillion in the past week, only months after reaching $37 trillion.
According to the Cato Institute, a median wage earner making $60,000 annually would need to pay an extra $2,600 in taxes yearly for Social Security at its current benefit levels to remain solvent in the near future.
Fiscal watchdogs and politicians alike have batted around ideas on how to extend Social Security’s solvency, such as privatizing the 90-year-old program or lifting the payroll tax cap.
The Social Security payroll tax will remain unchanged in 2026, according to the COLA report.
The Committee for a Responsible Budget, which commented on the 2026 COLA, suggests lawmakers adopt a COLA cap limiting the size of the annual benefits adjustment for the highest-income earners.
Depending on which income percentile of retirees is used as the cutoff point, a COLA cap could close anywhere from one-twentieth to one-quarter of Social Security’s solvency gap.
“Under this cap, beneficiaries would continue to receive a COLA, but the very highest earners would get the same COLA as the pretty high earners,” Matt Klucher, assistant director of CRFB media relations, stated. “This wouldn’t restore solvency on its own, but it would help a lot.”
Why the National Debt Is the Looming Threat to Your Retirement Plans
The Hidden Crisis No One Is Talking About
Every day, headlines warn about inflation, market volatility, and global instability—but the greatest looming threat to your retirement might be something far more fundamental: America’s skyrocketing national debt.
You can learn more about how the national debt affects you by reading this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“.
With debt growing faster than most Americans can possibly fathom, the government’s borrowing habits have reached historic—and dangerous—levels. To cover spending, Washington is making moves with their budget packages, tariffs, and taxes. Is it enough? No. It’s not even close to what would be necessary to stop out-of-control debt, let alone reverse it.
How Debt Erodes Your Nest Egg
There are only so many levers government and the Federal Reserve can pull to try to protect Americans, assuming that’s even a top priority for them. Unfortunately, pulling one level to relive one pressure invariably adds pressure from another direction. This is why prices keep going up even as inflation reportedly slows.
For retirees and pre-retirees, that’s a perfect storm. The dollars you’ve worked hard to save lose value, and your cost of living increases while your investments lag behind.
If you’re relying solely on paper-based assets—stocks, bonds, or mutual funds—you’re essentially tied to the same system that’s creating the problem. It’s a system that was designed to work well in the 20th century, not in today’s world with people living longer and the dollar rapidly losing value.
This is why the 3-minute report, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now,” is so important.
The Precious Metals Hedge
Thousands of Americans are looking for a tangible, time-tested hedge: physical gold and silver.
Unlike paper assets, precious metals aren’t dependent on government policy or the stock market’s mood swings. They’re real, finite resources that have maintained value for thousands of years through wars, recessions, and inflationary periods.
In fact, during times of high inflation and fiscal instability, gold often performs its best—because it’s seen as a store of value when faith in the dollar weakens. This is why prices have skyrocketed this year and are expected by many economists to continue going up in the future.
Take Control with a Gold IRA
One of the most effective ways to protect your retirement from national debt fallout is through a self-directed Gold IRA. This IRS-approved account lets you hold physical gold and silver within your retirement portfolio, giving you:
- Direct ownership of your assets
- A hedge against inflation and dollar decline
- The control to diversify beyond Wall Street
Augusta Precious Metals specializes in helping Americans just like you take this step with confidence. The company has earned a strong reputation for transparency, education, and personalized service—making it one of the most trusted names in the industry.
The Next Step: Secure Your Financial Future
Augusta Precious Metals has helped thousands of Americans with at least $50,000 to invest from their IRAs, 401(K)s, TSPs, and other retirement accounts safeguard their savings through precious metals.
If you’re concerned about what the rising national debt could mean for your future, now is the time to act.
Read this 3-minute report titled, “Debt Will Hit $40T in 2026: Prepare Your Retirement Now“ and learn the simple steps you can take to protect your retirement.
Yeah, we should do our patriotic duty and give it all up. Whether we can “afford” it or not, Right? Let me tell you, I’ve been paying taxes since I was 16 at the point of a gun. I’m 68 today. I should’ve been on disability since I was in my 50’s and they laughed at me. At least I got a tag for my car, right? And it’ll be at the point of a gun before I give it up.