The Social Security Administration will announce the 2026 cost-of-living adjustment (COLA) in October 2025, which is crucial for beneficiaries to understand their expected payments. The COLA is calculated based on the average inflation from July to September, compared year-over-year, and is expected to be around 2.5% for 2026.
COLAs are calculated as a percentage increase applied to monthly Social Security checks, leading to unique dollar value increases for each beneficiary. For example, a 2.5% COLA would result in a $50 increase for someone receiving a $2,000 monthly check and a $125 increase for someone at $5,000. Despite these adjustments, benefits have lost 20% of their purchasing power since 2010, according to The Senior Citizens League.
Beneficiaries may need to adjust their budgets accordingly, as the 2026 COLA may not fully offset inflationary pressures. Research indicates that there’s potential for lower-than-expected increases, and many may have to rely on personal savings or additional government benefits to meet costs.
