Seniors are expected to see a decrease in their Social Security benefits as financial experts predict a lower cost-of-living adjustment (COLA) for 2026. According to the Senior Citizens League, (TSCL), the 2026 COLA could be around 2.3%, marking a 0.2% decrease from the previous year’s adjustment.

The COLA is determined annually based on inflation data from the third quarter of the year. The official announcement for 2026 is expected in October.

Legislation Aims to Ease Financial Burden on Seniors

In 2023, Rep. Thomas Massie reintroduced the Senior Citizens Tax Elimination Act, which seeks to reduce the financial burden on retirees by eliminating income taxes on Social Security benefits, SI Live reports.

“Eliminating taxes on Social Security benefits would be an excellent step to provide financial relief to American seniors, many of whom are struggling with a cost of living that is growing much faster than their incomes. It would also reduce double taxation, which is inherently unjust,” TSCL Executive Director Shannon Benton told SI Live.

Potential Savings for Social Security Beneficiaries

According to TSCL, Social Security recipients would save an estimated $3,000 annually if the tax on benefits were removed. As of January, retirees receive an average of $1,837.91 per month, according to the Social Security Administration.

While the proposed legislation could provide relief, the future of Social Security taxation remains uncertain. The final COLA adjustment for 2026 will be determined later this year.