Social Security’s annual cost-of-living adjustment (COLA) is designed to give seniors an inflation-based raise every year, but the extra money doesn’t always provide much of a financial boost.
The COLA formula doesn’t account for senior-specific expenses, such as increases in the Medicare Part B premium. In 2026, the higher premium will eat up more than one-quarter of the average Social Security COLA, according to the Center for Retirement Research at Boston College.
Read Next: 3 Biggest Problems Facing Social Security in 2026
Check Out: 8 Clever Ways Retirees Are Earning Up To $1K per Month From Home
Because the COLA is based on third-quarter inflation data, there’s nothing you can do personally to change it. However, you can make changes that can help you prepare ahead of time. Here are five ways to “create” your own COLA if you’re worried about a smaller Social Security raise in 2027.
1. Delay Filing for Benefits
This is an option if you qualify for Social Security but have not yet filed for retirement benefits. Your benefits typically increase by about 8% for each year you delay claiming until age 70, according to the Social Security Administration (SSA).
The higher your benefit, the bigger the impact of the annual COLA.
Find Out: What Is the Highest Social Security Check per Month?
2. Suspend Benefits
If you’ve already claimed benefits but are still under the full retirement age (FRA), you can voluntarily suspend benefits to earn delayed retirement credits of roughly 8% per year until age 70.
Again, the higher benefit means more money from the COLA.
3. Coordinate With a Spouse
If you’re married, developing the right strategy around spousal benefits allows a lower-earning spouse to receive up to 50% of the higher earner’s benefit.
This can maximize your benefit and help offset a smaller COLA.
4. Earn Extra Income
Working a side hustle or part-time job lets you earn extra income that can help compensate for a lower-than-needed Social Security COLA.
Just keep in mind that while you can still work while collecting benefits, if you’re under FRA, then any earnings above $24,480 in 2026 can reduce your benefits temporarily, according to the SSA.
5. Use SSA Resources
If you haven’t done so already, create a “my Social Security” account to view your benefits and benefit estimates.
You can also use the account to get your annual COLA notice early, helping you devise a plan for maximizing the raise.
More From GOBankingRates
- 6 Costco Deals That Make Your Everyday Life Feel Slightly More Luxurious
- Jerry Seinfeld's Social Security Check vs. the Average American's
- 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: 5 Ways To Create Your Own COLA Now If You’re Worried About a Smaller Social Security Raise in 2027
