Social Security Beneficiaries: Mark Your Calendars for 15th of October
Social Security Cost-of-Living Adjustment (COLA) Expected to Increase in 2026
The Social Security Administration is set to announce the Cost-of-Living Adjustment (COLA) for 2026 on October 15, with estimates suggesting a significant increase for retirees. According to The Senior Citizens League (TSCL), the expected COLA for 2026 is approximately 2.7%, which would increase the average monthly benefit by about $54, from $2,008 to $2,062.
The COLA is one of the most crucial parts of the Social Security program, providing a critical safety net for millions of Americans who may rely entirely or mostly on benefits to survive. Over the past few decades, the COLA has played a significant role in helping Social Security recipients maintain their purchasing power in the face of inflation.
In the past ten years, Social Security has implemented COLAs ranging from 0.3% to 8.7%. Notably, the COLA has been zero in three instances: 2010, 2011, and 2016. The TSCL report suggests that a COLA based on the CPI-E might have prevented Social Security from losing 30% of its purchasing power over the past 25 years.
The CPI-E places greater emphasis on healthcare and housing costs for people age 62 and older. It's worth noting that the Social Security Administration currently determines the annual COLA by considering the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). However, it's not specified in the provided text whether Social Security uses a different method to determine the COLA or not.
The CPI-W looks at the prices of common expenses such as housing, food, transportation, medical care, and clothing. TSCL's estimate for 2026 is only 0.1% higher than 2025's COLA. A study by the Congressional Research Service (CRS) found that a COLA based on the CPI-E would've been the same or higher than the actual COLA in all but six years since 1986.
Social Security releases its official annual COLA number on Oct. 15. The official COLA for 2025 was 2.5%. If TSCL's estimate holds true, this would mark the second consecutive year of a significant increase in the COLA, following the 5.9% increase in 2022 and the 2.8% increase in 2019.
The increase in the COLA is welcome news for Social Security recipients, who may find it challenging to make ends meet with a fixed income. The announcement of the 2026 COLA is expected to provide a much-needed boost to their financial well-being.
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