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2026 Social Security COLA to be announced on this date, but will benefits increase?
Recipients of Social Security benefits are likely to receive good news this month as the annual inflation-based adjustment to their payments will be announced.
Social Security beneficiaries are all set to experience an addition to their earnings in 2026. The Social Security benefits undergo a cost-of-living adjustment (COLA) every year, based on inflation.
Social Security payments increase in 2026?
As per AARP.org, the 2026 COLA will be determined on October 24 after the Bureau of Labor Statistics (BLS) releases its inflation report for September. Initially, both the COLA as well as the BLS reports were scheduled to be released on October 15, but it has now been postponed due to the ongoing federal government shutdown.
“Social Security and Supplemental Security Income benefits for 75 million Americans will be adjusted per the 2026 COLA, beginning January 1, 2026, without any delay due to the current government lapse in appropriation,” a spokesperson of the Social Security Administration said.
The inflation-related indicator that is key to determining COLA is the Consumer Price Index for Urban Wage Earners and Clerical Workers (known as the CPI-W). Going by the CPI-W for August, which was 2.8 per cent, there is likely to be a modest increase in the Social Security benefits of the recipients next year, AARP.org reported.
If the September CPI-W remains approximately the same, the COLA for 2026 may come to around 2.7 per cent, an expert opined.
What to expect?
The Detroit Free Press pointed out that the COLA for 2025 was 2.5 per cent. So, the increase this time is likely to be slightly higher. A 2.7 per cent increase would translate to roughly $50 extra per month for Social Security beneficiaries.
The news outlet reported that the average earnings through Social Security for beneficiaries are $1,864.64.
The highest jump in COLA came in 2023, when it was 8.7 per cent. That was due to the high inflation at the time. This time around, the increase is going to be modest.
The September CPI-W figures are important because the COLA is based on the inflation in the third quarter, which includes the months of July, August, and September. With the July and August figures already in, only the numbers from September are needed to finalize the COLA increase.
A gain of around $50 per month should be able to bring a little extra cheer on New Year for the beneficiaries.
Also Read: Social Security scam alert: Senior citizens being targeted with fake letters. How to stay safe?
FAQs:
What is COLA?
Cost-of-Living Adjustment is the annual change in the Social Security payments to account for inflation.
When is the COLA for 2026 going to be announced?
The announcement will be made on October 24.
How much increase can beneficiaries expect in the payments they receive in 2026?
Estimates suggest that the COLA for 2026 would be a 2.7 per cent increase. This means there could be an increase of around $50 for the recipients.
