When Will the 2026 COLA Be Announced?
The Social Security Administration (SSA) will announce the 2026 Cost of Living Adjustment (COLA) on October 10, 2025.
This announcement will affect about 72 million Americans who receive Social Security benefits, letting them know how much their payments will increase in 2026.
What Is COLA and Why Is It Important?
COLA stands for Cost of Living Adjustment. It determines how much monthly Social Security payments go up each year, based on rising prices (inflation).
COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in prices for things like food, housing, and healthcare.
COLA matters because it helps retirees, people with disabilities, and survivors keep up with higher living costs. However, COLA increases often don't cover all rising expenses, especially in areas like healthcare and housing.
How Much Will Benefits Increase in 2026?
Experts predict the COLA for 2026 will be about 2.7%. This is a bit higher than the 2.5% increase in 2025.
The Senior Citizens League, a group that advocates for older adults, estimates the increase will be between 2.6% and 2.8%, depending on inflation in the third quarter of 2025.
If inflation goes up more than expected, the COLA could be higher, just like it was in 2023 when benefits rose by 8.7%.
What Does This Mean for Social Security Recipients?
- Retired Workers: The average monthly benefit in 2025 is about $1,920. With a 2.7% COLA, the average check would go up by around $52 per month, or $624 per year.
- Retired Couples: Couples receiving benefits would see their monthly check rise by about $81.
- Disabled Workers: Those on disability would get about $42 more per month, based on an average benefit of $1,542.
- SSI Recipients: People receiving Supplemental Security Income (SSI) could see their maximum monthly payment increase from $943 to about $968.
Keep in mind these are estimates. The exact amount each person gets depends on their own work history and when they started claiming benefits.
Rising Costs for Retirees
While a 2.7% increase helps, it might not cover all cost increases. Healthcare costs rose by about 4.8% and housing costs by 5.2% recently.
Plus, Medicare Part B premiums, which are taken out of Social Security payments, are expected to go up in 2026.
Tips for Retirees
- Check for Extra Help: See if you qualify for programs like the Earned Income Tax Credit, which can provide up to $7,000 to low-income seniors.
- Delay Claiming Benefits: Waiting to claim Social Security until age 70 increases your monthly payments by 8% for each year after full retirement age.
- Protect Savings: Consider savings tools like Treasury Inflation Protected Securities (TIPS) to help guard against inflation.
- Monitor Your SSA Account: Check your Social Security online account to make sure your benefits are calculated correctly.
Maximum Benefits After COLA in 2026
- Early Retirement (age 62): Maximum benefit could reach about $2,907 per month, up from $2,831 in 2025.
- Full Retirement Age (67 and later): Could receive up to $4,152 a month, up from $4,043 in 2025.
- Delayed Retirement (age 70): Waiting increases the maximum benefit to about $5,246 a month, up from $5,108 in 2025.
In summary
Social Security benefits are expected to go up by about 2.7% in 2026, helping millions of Americans keep up with rising costs.
Retirees are encouraged to check for additional assistance, consider when to claim their benefits, and make plans to protect their income against inflation.
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