France Plans Social Security Cuts, Pension Reforms to Reduce 2026 Deficit

The Social Security Administration has announced a 2.8% cost-of-living adjustment (COLA) for 2026, providing an average monthly increase of about $56 to beneficiaries. However, many retirees express concern that this raise will not keep pace with actual inflation, especially given rising Medicare Part B premiums, which could significantly offset the COLA increase. Critics argue that the current COLA calculation uses the CPI-W index, which tracks inflation based on urban workers' expenses but underestimates the real inflation burden on seniors, whose spending patterns are better reflected by the CPI-E index. Meanwhile, in France, the 2026 Social Security financing bill aims for massive savings by slowing pension reforms and freezing social benefit increases, including retirement pensions and family allowances, to reduce the social protection deficit. Inflation data released despite government shutdowns show a slight uptick in year-over-year inflation to around 3%, complicating efforts to balance Social Security benefit adjustments and economic pressures. The persistent gap between official inflation measures and seniors' lived experiences raises concerns about the long-term adequacy of Social Security benefits.