Social Security Administration to Announce 2026 COLA Increase on October 24

Introduction

Each year, millions of Americans depend on Social Security benefits to maintain their standard of living. One crucial aspect of these benefits is the Cost-of-Living Adjustment (COLA), which helps ensure that the purchasing power of Social Security payments keeps pace with inflation.

The Social Security Administration (SSA) has announced that the official COLA increase for 2026 will be disclosed on October 24, 2025. This announcement is particularly significant as it follows a delay caused by the ongoing federal government shutdown.

What Is COLA and Why Is It Important?

The COLA is an annual adjustment made to Social Security and Supplemental Security Income (SSI) benefits to counteract the effects of inflation. It’s determined based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the average change over time in the prices paid by urban consumers for a basket of goods and services.

Without COLA adjustments, beneficiaries would experience a decrease in real income as the cost of living rises. Therefore, the COLA ensures that Social Security payments retain their value, allowing recipients to maintain their purchasing power despite inflation.

The Delay in the 2026 COLA Announcement

Traditionally, the SSA announces the COLA increase in mid-October. However, due to the federal government shutdown that began on October 1, 2025, the release of the September CPI-W data was delayed. This data is essential for calculating the COLA. To address this, the Bureau of Labor Statistics (BLS) recalled some furloughed workers to complete the necessary reports, enabling the CPI-W data to be released on October 24, 2025.

Consequently, the SSA has rescheduled the COLA announcement to the same day, October 24, 2025. This adjustment ensures that the SSA can meet statutory deadlines for the accurate and timely distribution of Social Security benefits.

Projected COLA Increase for 2026

Analysts and advocacy groups, such as the Senior Citizens League, anticipate a 2.7% COLA increase for 2026. This projection is based on current inflation trends and the CPI-W data. While this increase is modest compared to the 8.7% rise in 2023, it is slightly above the 20-year average of 2.6%.

For beneficiaries, this means an average monthly benefit increase of approximately $54, raising the average monthly benefit for retired workers from $2,008 to $2,062.

Impact on Beneficiaries

The COLA increase will affect various groups differently:

• Retired Workers: An estimated increase of $54 per month.
• Disabled Workers: An estimated increase of $43 per month.
• Survivors/Widow(er)s: An estimated increase of $44 per month.

These adjustments are crucial for beneficiaries, especially seniors, who often face rising costs in healthcare, housing, and other essential services.

How COLA Is Calculated

The SSA calculates the COLA by comparing the average CPI-W for the third quarter (July, August, and September) of the current year with the same period from the previous year. If there is an increase, that percentage is applied to benefits. This method ensures that the adjustment reflects the actual inflation experienced by beneficiaries.

The Role of the CPI-W and CPI-E

The current COLA calculation uses the CPI-W, which tracks the spending patterns of urban wage earners and clerical workers. However, some advocates argue that the Consumer Price Index for the Elderly (CPI-E), which focuses on the spending patterns of older Americans, would provide a more accurate reflection of inflation for seniors.

The CPI-E tends to show higher inflation rates for seniors, primarily due to increased healthcare costs. Despite these arguments, efforts to switch the COLA calculation to the CPI-E have not gained significant traction in Congress.

What Beneficiaries Should Expect

While the official COLA announcement is delayed, beneficiaries can anticipate the following:

• Benefit Adjustments: The COLA increase will be applied to benefits starting January 1, 2026, as scheduled.
• Notification: Beneficiaries will receive notifications about their new benefit amounts in early December 2025.
• No Impact on Payments: The delay in the announcement does not affect the timing or amount of benefit payments.

Conclusion

The upcoming COLA announcement is a vital event for millions of Social Security beneficiaries. Despite the delay caused by the government shutdown, the SSA has taken steps to ensure that the COLA increase for 2026 is calculated accurately and distributed timely.

Beneficiaries can look forward to the official announcement on October 24, 2025, and the implementation of the new benefit amounts starting January 1, 2026.

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