The Social Security (SSA) Cost-of-Living Adjustment (COLA) is a way of calculating the benefit an individual is eligible for based on inflation data. The goal is to cushion rising prices and the cost of living as much as possible in order to preserve citizens’ purchasing power by determining how much Social Security payments will increase the following year. By 2026, the adjustment will affect more than 71 million beneficiaries of the Social Security and Supplemental Security Income (SSI) programs.
The COLA announcement is made each year in October, after the Bureau of Labor Statistics (BLS) releases the CPI-W
On the one hand, the COLA increase applies to benefits for retired workers, survivors, and Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries. On the other hand, according to the SSA, the COLA announcement is made each year in October, after the Bureau of Labor Statistics (BLS) releases the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data for September.
The announcement of 2026 has been postponed until October 24, when the Bureau of Labor Statistics (BLS) will release the data
The U.S. Social Security Administration (SSA) will release this month the official cost-of-living adjustment (COLA) percentage that will govern retirement benefits and other federal programs starting in January 2026. In 2025, the COLA 2026 announcement was initially scheduled for October 15, but due to the government shutdown, it has been postponed until October 24, when the Bureau of Labor Statistics (BLS) will release the September Consumer Price Index report – the final piece required to determine the new COLA.
According to the latest projections from the Senior Citizens League, the 2026 Social Security COLA could be 2.7%
How is the COLA calculated? We have to go back a few years to explain it properly. The COLA mechanism was incorporated into the Social Security Act of 1935 through an amendment passed in 1972. Since 1975, increases have been applied automatically each January, without requiring congressional approval. In 2025, beneficiaries received a 3.2% increase, following the 8.7% adjustment recorded in 2023, the highest since 1981. According to the latest projections from the Senior Citizens League, the 2026 Social Security COLA could be 2.7%, which would raise the average monthly payment for retired workers by about $54, from $2,008 to $2,062.
The adjustment, based on inflation data to preserve beneficiaries’ purchasing power, determines how much Social Security payments will increase
Each year, the Social Security Administration (SSA) calculates the Cost-of-Living Adjustment (COLA) for the following year. According to the SSA, the cost-of-living adjustment is determined by comparing the average of the CPI-W index for July, August, and September of the current year with the same average from the previous year. If the result reflects an increase, that percentage is applied to benefits starting the following January. If there is no increase, payments remain unchanged. This adjustment, based on inflation data to preserve beneficiaries’ purchasing power, determines how much Social Security payments will increase the following year. In this case, the delay in the announcement has beneficiaries on tenterhooks.
People who receive both Social Security and SSI benefits typically collect SSI on the first business day of the month and Social Security on their calendar date
It’s important to remember that if you have any questions, it’s always advisable to consult an official source. The annual COLA increase affects everyone who receives Social Security and Supplemental Security Income (SSI) payments. People who receive both Social Security and SSI benefits typically collect SSI on the first business day of the month and Social Security on their calendar date. According to SSA data, more than 51 million beneficiaries receive SSI benefits, while 20 million receive SSI payments.
