Security COLA 2026: What It Means for Boomer Homeowners in Bergen County

How will the 2026 cost-of-living adjustment affect your ability to afford your home in retirement?

The projected Social Security cost-of-living adjustment (COLA) for 2026 is expected to rise to 2.7%—a modest bump that may not keep pace with rising housing costs, especially in high-tax regions like Bergen County, NJ. If you’re a retiree or nearing retirement, this seemingly small adjustment could play a big role in shaping your housing decisions for the year ahead.

As your trusted advisor, I’m here to help you evaluate what this change means for you—and what steps you can take to protect your housing budget.

What Is the 2026 Social Security COLA?

Each year, the COLA adjusts Social Security benefits to account for inflation, based on the CPI-W index. While early 2026 estimates were around 2.4%—the smallest in five years—rising inflation has nudged that figure up to 2.7%.

That might sound like good news, but remember: a higher COLA often reflects higher costs across the board—including homeownership expenses.

The Hidden Pressure of Rising Housing Costs

In Bergen County, housing costs continue to outpace income adjustments. Consider these realities:

• Home insurance premiums are spiking, especially in areas at climate risk or with insurer pullouts

• Property taxes remain high and often rise with reassessments in appreciating neighborhoods

• Utilities, especially electricity, are projected to climb steadily through 2026

A 2.7% COLA increase adds about $54/month to a $2,000 Social Security check—not nearly enough to offset those rising costs.

Why This Matters for Retirees on a Fixed Income

For many boomers, Social Security is the backbone of monthly income. In fact, retirees age 62–63 rely on Social Security for nearly 67% of their income, according to the Employee Benefit Research Institute.

With so much depending on a single source—and with housing expenses rising faster than that source is adjusting—the math doesn’t always work out.

That’s where real estate strategy becomes a financial lifeline.

A New $6,000 Senior Deduction Offers Relief

There is some good news: a newly signed $6,000 senior deduction gives retirees an opportunity to lower their taxable income. While it won’t eliminate taxes on Social Security altogether, it could help offset:

• Property tax increases

• Healthcare and housing-related out-of-pocket costs

• Income tax burdens tied to investment income or part-time work

In short, it’s a tool you can use alongside a real estate strategy to protect your retirement income.

The Tipping Point: Downsizing, Refinancing, or Staying Put?

A modest COLA can become the trigger for major housing decisions. If your benefits aren’t keeping up with your mortgage, tax bill, or maintenance costs, consider:

• Downsizing to reduce utilities, taxes, and upkeep

• Tapping home equity through a reverse mortgage

• Appealing your property tax assessment if your home’s valuation seems inflated

In a market like Bergen County, where inventory is still tight but values remain high, this could be a strategic moment to reposition yourself financially.

The Squeeze in High-Tax Areas Like Bergen County

New Jersey’s high property taxes and municipal fees make the COLA vs. cost equation even tougher. Even with the SALT deduction cap raised to $40,000, many retirees won’t benefit unless they have significant tax liability.

In some cases, state-level tax relief programs or even relocating within Bergen County may offer better solutions.

Real Talk: Your Home Is an Asset—Use It Strategically

Whether you plan to age in place or reposition your housing footprint, your home is likely your largest asset. With smart planning, you can use it to:

• Reduce monthly expenses

• Free up equity for healthcare or travel

• Lower your stress about rising bills

Let’s talk about what makes sense for you.

Let’s Make a Plan That Works for You

The 2026 Social Security COLA may not go as far as you’d like—but that doesn’t mean you’re out of options. With the right guidance, you can make proactive choices that preserve your lifestyle and long-term security.

Whether it’s time to sell, downsize, or simply evaluate your options, I’m here to help.

📞 Call me today: 201-970-3960
📅 Schedule your consultation: tidycal.com/slselleck
📧 Email: [email protected]

Let’s make your next move a strategic one.