# Does Social Security keep up with costs if I live abroad?

Canonical: https://theretirementdecisionlab.com/answers/does-social-security-get-a-cost-of-living-raise-abroad/
Section: Can you afford to retire? (Retirement Decision Lab, Decision 1 · Week 1 · Wed Nov 4)
Facts checked: 2026-10-06 · Next review by: 2026-10-31
Reviewed by: Todd Allyn, Founding Director, Sovereo Intelligence Research

## Short answer

Only partly. The yearly cost-of-living adjustment (COLA) raises benefits by a percentage based on US inflation: 2.8% for 2026. It is not adjusted for prices or exchange rates where you live.

## Detail

If your local costs rise faster than US prices, the raise will not keep up.

The raise is in dollars. If the dollar loses ground against your local currency, a 2.8% raise can still leave you with less buying power than the year before.

SSA announces the next year's COLA each October.

## Where it gets personal

Week 1 tests your budget against both inflation and currency moves. The Retirement Decision Lab: https://theretirementdecisionlab.com/

## Sources

1. Social Security Announces 2.8 Percent Benefit Increase for 2026, Social Security Administration: https://www.ssa.gov/news/en/press/releases/2025-10-24.html
2. Your Payments While You Are Outside the United States (EN-05-10137), Social Security Administration: https://www.ssa.gov/pubs/EN-05-10137.pdf

Education only. Not financial, tax, investment, immigration or legal advice.
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