Following the announcement of the 2026 COLA (Cost-of-Living Adjustment), many seniors are expressing their concerns.
Each year’s COLA sparks debate — not just about numbers, but about fairness. For many retirees, the COLA isn’t simply a financial adjustment; it’s a reflection of respect.
It acknowledges that those who spent decades contributing to the system deserve to maintain their standard of living as prices rise. And even for those who don’t need the extra money, they’ve earned it, because they paid in all those years.
Why Low COLAs Are a Disservice to Seniors
From an economic standpoint, inflation is the reason for the COLA. It quietly erodes the value of a dollar, no matter how carefully one has saved or invested. The COLA helps preserve the purchasing power earned over a lifetime of work. For many, this adjustment represents the principle that retirement benefits should keep pace with the real economy — not fall behind it.
Yet beyond economics, there’s a deeper emotional layer. Receiving a COLA reinforces a sense of dignity and recognition — a reminder that experience and effort still matter in a society often focused on the next generation. Even for those who are financially comfortable, it’s about continuity and fairness, not necessity. The adjustment is a tangible acknowledgment that their contributions still count. The COLA isn’t a gift. Instead, it’s a fair repayment if the amount is high enough.
The psychology of fairness tells us that people care deeply about being treated equitably, especially when they’ve held up their end of the bargain. That’s why the COLA resonates across income levels. It’s not about gain — it’s about keeping the promise that was made.
At its core, the COLA reflects a social contract built on reciprocity and respect. It’s more than a formula tied to inflation; it’s a symbol of fairness that honors a lifetime of work, contribution, and perseverance.
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