Social Security COLA Matters as Older South Dakotans Face Rising Everyday Costs

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AARP

Published October 28, 2026

For more than 1 in 5 South Dakotans, the annual Social Security cost-of-living adjustment (COLA) is about much more than a percentage.

It can mean a little more breathing room at the grocery store. Help with a utility bill. Or more money available for health care, prescriptions and other everyday necessities.

The 3.6% Social Security COLA announced for 2027 will provide welcome relief for older South Dakotans, but AARP South Dakota State Director Erik Gaikowski says many continue to feel the pressure of rising everyday expenses.

“This COLA increase will go toward helping older South Dakotans make ends meet,” Gaikowski said. “AARP fought for the creation of the automatic COLA in 1972 because older adults needed protection from rising prices. Before then, changes to Social Security payments depended on an act of Congress, which left too many people vulnerable to inflation.”

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Higher costs continue to strain household budgets

For South Dakotans living on fixed incomes, even modest increases in everyday expenses can create difficult choices.

Across the state, Social Security recipients tell AARP they are feeling those pressures at the grocery store, when paying utility bills and when covering the cost of health care and prescription drugs.

“Prices remain too high,” Gaikowski said. “A trip to the grocery store costs more than it used to. Utility bills take a bigger share of the monthly budget. And health care and prescription drug costs continue to strain families’ budgets.”

That’s particularly significant because Social Security plays such a central role in retirement security. Among South Dakotans age 65 and older who receive Social Security, approximately 40% rely on it for at least half of their family income, while more than 20% rely on Social Security for 90% of their family income.

“They paid into it with every paycheck. They earned it through decades of hard work,” Gaikowski said. “This money belongs to them and they depend on it.”

Protecting the Social Security benefits people have earned

A recent AARP survey underscores that importance. Half of Social Security recipients say Social Security is their main source of income, and most Americans age 50-plus say the 2027 COLA would not keep up with rising prices.

That makes protecting the annual COLA an important part of protecting Social Security itself.

Proposals in Washington that would reduce the COLA could further strain the budgets of older Americans who are already paying more for everyday necessities.

This year’s adjustment will help. Every additional dollar matters when people are paying for groceries, utilities, health care and other essentials. But ensuring retirement security requires looking beyond any single year’s COLA.

AARP will continue fighting to protect and strengthen Social Security, including the annual cost-of-living adjustment, and urging Congress to ensure the program remains strong for today’s retirees and the generations still paying into it with every paycheck.

Learn more and make your voice heard

Want to learn more about Social Security and what it means for you and your family? Visit AARP’s Social Security Resource Center for the latest information, tools and resources.

And if you believe Americans should receive the Social Security they’ve earned, contact your members of Congress and urge them to protect the COLA and strengthen Social Security without cutting the benefits Americans have earned.

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