The Social Security Administration (SSA) has officially announced the date for the 2026 Cost-of-Living Adjustment (COLA), which had been postponed due to the ongoing government shutdown.
Importance of the Announcement
Originally set for October 15, the announcement was delayed as the government shutdown affected Bureau of Labor Statistics employees, postponing the release of vital inflation data that informs this annual update.
Over 70 million Americans depend on Social Security payments for their income, and the annual COLA determines their benefit increases for 2026 to match rising living costs.
Key Details
The SSA has confirmed to Newsweek that the COLA update will be disclosed on October 24. A spokesperson for the SSA mentioned, “The Bureau of Labor Statistics (BLS) will release the September 2025 Consumer Price Index (CPI) on October 24. The SSA will utilize this data to calculate and announce the 2026 cost-of-living adjustment on the same day.”
Furthermore, benefits for 75 million Americans under Social Security and Supplemental Security Income (SSI) will be adjusted according to the 2026 COLA starting January 1, 2026, without any interruptions caused by the current government funding lapse.
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The SSA determines COLA increases based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation based on the spending habits of younger urban workers, rather than retirees. The BLS is responsible for producing significant economic indicators, including the CPI-W.
Since 1975, these annual adjustments have been made using CPI-W data collected in the third quarter (July through September) to help benefits adjust in line with common expenses such as housing, groceries, and healthcare.
Expected Increase in Benefits
The latest forecast from The Senior Citizens’ League (TSCL) estimates the COLA to be around 2.7%. TSCL’s executive director, Shannon Benton, stated, “As the COLA announcement approaches, seniors across America are anxiously waiting.
While a higher COLA would be welcomed for its potential to increase monthly benefits, many may feel let down. TSCL’s research indicates that many seniors think the COLA does not fully reflect the inflation they experience.”
The annual COLA impacts all programs overseen by the SSA, including:
- Retirement benefits and spousal benefits based on a partner’s earnings
- Survivor benefits
- Supplemental Security Income
- Social Security Disability Insurance
Next Steps
The COLA adjustments will take effect for all benefits issued starting January 2026.
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