The Social Security Administration (SSA) has officially announced a 2.8% benefits increase for the year 2026. This annual cost-of-living adjustment (COLA) is designed to reflect the rising inflation rates across the United States. However, for residents in high-cost areas like Seattle, this increase might not provide the financial relief many hope for.
For individuals who heavily rely on Social Security benefits, the upcoming adjustment may not stretch very far. The baseline cost of living, as well as the rate of inflation in the Seattle area, tends to exceed national averages significantly. Tanya McGee, a coordinator at Sound Generations, a nonprofit organization in King County that assists older adults and individuals with disabilities, stated, “It isn’t keeping up with inflation in the area enough to make any noticeable difference.”
The SSA calculates its annual cost-of-living adjustment using a metric known as the Consumer Price Index (CPI) for urban wage earners. This index estimates the costs associated with a typical set of goods and services for low- and middle-income workers. Recent data reveals that in August, the CPI for urban wage earners in the Seattle metropolitan area, which includes Seattle, Bellevue, and Tacoma, was a staggering 13.5% higher than the national average.
The cost of goods and services in the Seattle area is generally more expensive compared to the rest of the nation. Michelle Putnam, the director of the Gerontology Institute at the University of Massachusetts, Boston, commented, “For anyone who lives in a place where it costs more to live, that (benefits adjustment) is not going to be as helpful.” Furthermore, inflation rates are also trending higher in the Seattle region. For the year ending in 2024, the CPI for urban wage workers rose by 2.8% nationwide, while in Seattle, it increased by 2.9%.
The newly announced 2026 cost-of-living adjustment translates to an average increase of over $56 per month, according to SSA officials. However, McGee emphasized that this amount will likely fall short of covering rising Medicare premiums and other essential expenses like food, rent, transportation, and medical supplies for older adults in Seattle and King County. “It’s great that it’s going up,” Putnam remarked. “But $56 isn’t going to get most people very far.”
In addition to immediate issues concerning benefit amounts, many older adults harbor long-term concerns regarding the future of Social Security. For years, the program has been paying out more in benefits than it collects through taxes. Recent changes to Social Security under both the Trump and Biden administrations may have accelerated its path toward insolvency. According to the latest annual report from the program’s trustees, Social Security reserves are projected to be depleted by 2034. After this point, the program would only be able to pay out 81% of benefits.
Policymakers have proposed various solutions to address the program’s financial shortfall, including adjusting benefit levels, raising the retirement age, and modifying payroll tax rates. Given that so many older adults depend on Social Security benefits for their daily living expenses, Putnam stressed the importance of ensuring the program's long-term viability.
