The update on the 2026 cost-of-living adjustment (COLA) for Social Security has been made public. Here's the current status.
The Social Security Administration is set to announce the cost-of-living adjustment (COLA) for 2026 in mid-October, and experts predict a potential increase of 2.7%. This projection, made by the Senior Citizens League, is a slight increase compared to the 2.5% COLA in 2025.
Social Security benefits are adjusted annually to help ensure recipients can maintain their buying power in the face of inflation. However, these adjustments often struggle to keep pace with rising costs, making it essential for workers today to focus on accumulating retirement savings to reduce their reliance on COLAs in the future.
Inflation data for September is yet to be announced, and it will be declared in October before the official COLA can be declared. If the Senior Citizens League's prediction holds true, Social Security recipients may receive a more generous bump in 2026 compared to 2025.
However, higher prices for food, fuel, utilities, and other goods may offset any potential benefits of a larger COLA for Social Security recipients. Budget-conscious retirees should assess their spending and consider working part-time in the coming months to manage their finances effectively.
It's important to note that the projected 2.7% COLA for 2026 could potentially rise. The Senior Citizens League also projected a Social Security surcharge of 1.8% for 2026, which represents an increase compared to the 2025 cost-of-living adjustment (COLA) of approximately 8.7%. This suggests a smaller COLA increase in 2026 relative to 2025.
The Social Security Administration will announce the final COLA for 2026 in October, providing clarity on the exact adjustment that will be made to Social Security benefits. In the meantime, it's crucial for retirees to plan and manage their finances wisely to navigate any changes in their income effectively.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
%20for%20Social%20Security%20has%20been%20made%20public.%20Here's%20the%20current%20status.){kind=link}