Social Security COLA Increase 2026: What is the Latest COLA Update? Here’s What Retirees Need to Know

Beneficiaries disappointed with the cost-of-living adjustments in 2025 look forward to the Social Security COLA Increase 2026 to manage their expenses. When SSA announced the COLA increase of 2025 in October 2024, many people showed their disappointment due to the low rise in benefits. So, read the article below to learn about the new program increase.

Social Security COLA Increase 2026

Social Security payments are important for members who are not able to cover their living costs because of low earnings and exorbitant fees. Our analysts found that the Elderly Consumer Price Index (CPI-E), which focuses on medical expenses, heavily weighs down the nation’s retirees.

Although social security accounts for a minor segment of the benefit, it is necessary for individuals, particularly seniors, to fulfil their needs. Last month, about 52 million retired workers received an average payment of $1987.77 from the state.

2026 COLA Increase Overview

Hopes Rise for Bigger Social Security Boost in 2026

The 2025 Social Security COLA boost of a paltry 2.5%, which brings average monthly payments up by just $49, has disappointed many seniors, particularly since their living expenses have increased more aggressively. It’s infuriating to those who are primarily dependent on these payments.

Consequently, the populace keenly looks forward to the Social Security COLA Increase 2026, hoping for a higher increase. Although the actual number will be declared on the official COLA 2026 release date, initial estimates are that the hike might be more than initially predicted by experts.

How the 2026 COLA Will Be Calculated and Why It Matters

The 2.5% 2025 Social Security COLA Increase rise relied on the third-quarter CPI-W average difference between 2023 and 2024. The same procedure will be employed to calculate the 2026 COLA, with the final figures arriving on October 15, 2025.

TSCL projects COLA based on a model incorporating unemployment, Federal Reserve rates, and CPI-W data and updating its monthly estimate. Early projecting a 2.1% rise for 2025, TSCL revised it to 2.3%, increasing the average monthly benefit from $1,979 to $2,025. While projections can alter, a larger COLA is usually welcome since bigger benefit checks are the result.

2026 COLA May Rise Due to Inflation Increase

The Senior Citizens League (TSCL) increased its 2026 COLA estimate from 2.1% to 2.3% after January’s inflation reading was released.

• This change would mean an average $46 monthly boost for retired workers in 2026.
• Mary Johnson, retired TSCL analyst and policy researcher continues to estimate a 2.1% COLA in 2026.
• The new estimate is based on a moderate reacceleration in Inflation.
• The CPI-U increased by 0.5% in January, the most considerable one-month increase since August 2023.
• During the last 12 months, the CPI-U has risen by 3%.

What Does Social Security COLA Increase Look Like

Using current inflation statistics, the Senior Citizens League (TSCL) has projected a 2.3% Social Security COLA for 2026. While this is less than the 2.5% that beneficiaries saw in 2025, remember that the actual COLA is determined using third-quarter CPI-W data.

As we are only halfway through the first quarter of 2025, this is a projection and not final. Economic conditions such as Inflation, energy, and healthcare costs could move in the next few months.

Seniors should take this initial estimate with a grain of salt & wait for official word later in the year before making any COLA-based financial plans.

COLA History and 2026 Forecast

During the 2010s, COLA raises were typically anaemic, with no raises in 2010, 2011, and 2016 and only a 0.3% raise in 2017. But more recent years have witnessed higher raises due to increasing Inflation, with COLAs of 5.9% in 2022, 8.7% in 2023 (the largest in 41 years), 3.2% in 2024, and 2.5% in 2025. The average COLA since 2010 is around 2.3%.

The Senior Citizens League (TSCL) predicts a 2.1% COLA for 2026, based on deflation in energy and auto prices and decelerating Inflation in general. This would be the lowest rise in five years, but it would put average monthly payments for retired workers over $2,000 and disabled workers’ and survivors’ benefits to $1,600 and $1,575, respectively, both record highs.

FAQs