Social Security Increase 2026: The COLA Announcement Date is Set
The wait is over for Social Security recipients. The U.S. Bureau of Labor Statistics has announced that the 2026 Cost of Living Adjustment (COLA) will be revealed on October 24th. This crucial information will determine how much of an increase beneficiaries will receive next year.
The announcement date was initially scheduled for October 15th, but the ongoing government shutdown delayed the release of essential data. With 72.5 million Social Security beneficiaries relying on this information, the delay was a significant concern. However, the Bureau has assured the public that some employees will be recalled to ensure the timely publication of the September Consumer Price Index (CPI), which is crucial for calculating the COLA.
The CPI, released on October 24th at 8:30 a.m., will provide the necessary data to calculate the COLA. This figure is determined by the percentage increase in the CPI-W for the third quarter (July, August, and September) compared to the previous year's CPI-W. The resulting year-over-year difference will be the new COLA for the following year.
Recent COLA Projections
The nonpartisan Senior Citizens League's latest projections estimate a COLA of 2.7%, which would significantly impact beneficiaries. If accurate, this would mean an average monthly benefit increase of $54 for retired workers, raising their average monthly benefit from $2,008 to $2,062. This projection is higher than the 2.5% COLA for 2025 but lower than the 3.2% COLA for 2024.
Over the past two decades, the COLA has averaged 2.6%, according to the Senior Citizens League. The historical data for the past decade reveals a varying trend in COLA percentages, with significant increases in 2021 and 2022, followed by a slight decrease in 2023 and 2024.
Understanding COLA
COLA, or Cost of Living Adjustment, is a critical component of Social Security benefits, ensuring that recipients' purchasing power keeps up with inflation. It's calculated based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the year. This index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Stay tuned for the October 24th announcement, as it will provide essential information for millions of Social Security recipients.
