You can buy a couple dozen cans of Coca-Cola with that.

The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026. For more than 70 million recipients, that means an extra $56 per payment, bringing the average monthly benefit to just over $2,000. Does that sound fair? It depends on who you ask. “Retirees will always tell you it’s never enough, economists will often say it’s too much, and many suggest using other forms of measurement rather than the consumer price index,” said Mary Beth Franklin, president of RetirePro.

While most advisors encourage clients to wait until age 70 to claim the largest benefits possible, not everyone listens. “There are fears about the long-term financial stability of Social Security, and that could be playing into it,” Franklin told Advisor Upside.

Crack Open a Can

COLA increases are meant to preserve retirees’ buying power and account for inflation, which stood at 3% as of September, lower than expected but still above the Federal Reserve’s 2% goal. This year’s 2.5% COLA was the smallest in four years, and many Americans feel the 2026 bump barely offsets rising prices for essentials like utilities and certain groceries:

• Less than a quarter of Americans aged 50 and older agree that a 3% COLA increase is enough to account for surging costs, according to a recent AARP poll. Most said it should be between 5% and 8%.
• The COLA is based on the CPI for Urban Wage Earners and Clerical Workers, or CPI-W, which focuses on the spending habits of working households as opposed to the broad population of urban consumers represented by the CPI-U.
• Groups like the Senior Citizens League have pushed to use the CPI for the elderly, or CPI-E, which better reflects healthcare costs and senior spending habits.

Running on Empty? Social Security isn’t the sole source of retirement income for most Americans, but it remains vital, even for those with high incomes from IRAs, 401(k)s, and pensions. “The benefits are extremely valuable because it’s the one form of guaranteed retirement income that includes a cost-of-living adjustment,” Franklin said. “Even traditional pensions, unless you work for the federal or some state governments, don’t tend to have inflation adjustments.”

However, the system itself faces challenges. More people are retiring and living longer, while birth rates are falling and fewer workers are contributing. The program isn’t going broke, but its funds likely won’t cover 100% of benefits by 2033, and recipients would instead receive about 80%.

Younger generations have taken note as only 5% of Gen Z and 16% of millennials with 401(k)s expect Social Security to be their main retirement income, according to Cerulli data. Adding to the frustration is the current government shutdown. Payments continue, but it’s harder to schedule appointments at Social Security offices. “It worries people and continues to undermine their faith in the Social Security system,” Franklin said.

Different strokes for younger folks.

Kids entering adulthood today have different priorities than older generations. Every meal gets a photo, books are listened to instead of read, and job-hopping is expected. The same goes for money management, as Gen Z prefers a more DIY approach.

The group, born from 1997 through 2012, is the only one that trusts self-directed platforms more than financial advisors, according to research from SIFMA and KPMG. That doesn’t mean they don’t want guidance, but advisors will need to adapt to their hands-on style. “Retail platforms have invested a lot in user experience that creates trust, whereas professional financial platforms are decades behind,” said Landon Tan, founder of Query Capital. “There are potential pitfalls with self-directed investing, and people don’t always realize when they’re taking excessive risk.”

Hands On

Traditional wealth managers typically seek clients who already have substantial assets, but self-directed platforms like Robinhood, which requires only $1 to start investing, appeal to younger investors. Technology has also boosted investor confidence, said Crystal McKeon, CFP at TSA Wealth Management. “Selecting a balanced customized portfolio used to be very difficult, confusing and overwhelming for most everyday investors,” she told Advisor Upside. “With today’s technology, an investor can answer a few questions and get a decent portfolio customized to them.”

Some advisors even encourage clients to explore self-directed accounts. “If they’re curious about particular stocks and are emotionally and financially OK with the value plummeting to zero, it can be ‘play money,’” said Sam Mockford, associate wealth advisor at Citrine Capital.

The study also found:

• Roughly 75% of boomers focus on investment returns and performance, while only one-third of Gen Z feels the same.
• Instead, 41% of Gen Z prioritizes transparency, and nearly half emphasize digital capabilities, factors that matter to fewer than 10% of boomers.

To stay competitive, advisors are shifting focus from portfolio management to more comprehensive client services like financial planning, tax strategies, estate coordination, and communication among service providers, McKeon added.

Roll the Dice. Still, Gen Z’s do it yourself approach can be risky. Stifel CEO and incoming SIFMA Chair Ronald Kruszewski cautioned that technology’s accessibility has blurred investing and amusement. “Technology has given younger investors extraordinary access, but it’s also brought gambling impulses into investing,” he wrote in Barron’s. “Investing was never meant to be entertainment.”

But if young people can’t get their entertainment from trading, then what? Their only other options are Netflix, PlayStation, Spotify, YouTube, TikTok, Hoopla, Audible, Prime Video, Disney+, Xbox Game Pass, the library, the outdoors …

Choices, choices.

Private assets, including private equity, private credit, real estate or other alternatives, are not so private anymore.

According to a 2025 Invesco survey, nearly one in five investors already hold private assets in their portfolio, with 79% of those surveyed expressing interest in adding or keeping these alternatives in their portfolio over the next few years. High net worth and younger clients — two segments who have expressed interest in alternatives — will be looking for advisors who understand the unique challenges of investing in private markets. Savvy advisors can stand out by shifting the conversation and educating clients on implementation, and by communicating the importance of a customized strategy that explains how to put private assets to work alongside public holdings.

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