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So reportedThe Senior Citizens League(TSCL), a leading senior advocacy group.
TSCL recently predicted that the COLA for 2026 will come in at 2.3%.
Thats up from a 2.1% prediction the previous month.
The Social Security COLA hasnt come in under 2% since 2021, when benefits increased by 1.3%.
Next, learn the economy could shape your retirement.
If youre staring down a relatively paltry Social Security COLA, reviewing your budget is a must.
Consider crafting a budget in advance that accounts for a lower COLA.
double-check your budget focuses on essentials housing, utilities, healthcare, groceries before spending it on non-essentials.
If inflation rises and COLA doesnt cover it, reducing discretionary spending can help you stay afloat.
It wouldnt hurt to get going on this sooner rather than later.
Thats aspirational for many, especially in these days of inflation and widespread economic insecurity.
Or if you are already there, adding even more.
Having more in the bank will increase peace of mind and help you weather disappointing benefit news.
The principal of a TIPS increases along with inflation and decreases along with deflation.
When it matures, youre never left with less than the original principal.
Youll have either the increased price or the original principal, whichever is higher.
Inflation-protected annuities (IPAs) are also becoming more popular as retirees look to protect their purchasing power.
Youll be more likely to be prepared and take the announcement in stride.
In addition to predictions from TSCL, keep an eye on inflation rates.
Cooling inflation may mean a lower COLA.
Its also worth watching theConsumer Price Index for Urban Wage Earners and Clerical Workers(CPI-W).
And dont forget to track proposals in Congress that could affect COLA calculations or Social Security benefits in general.
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