The Social Security Administration (SSA) has announced the new date for the 2026 Cost of Living Adjustment (COLA), which was delayed due to the ongoing government shutdown.
Why Is It Important
This announcement was initially set for October 15, but the shutdown led to furloughs at the Bureau of Labor Statistics (BLS), delaying vital inflation data needed for this annual update.
About 70 million Americans depend on Social Security payments, and the annual COLA is crucial in determining how much extra they will receive in 2026 to manage rising living costs.
What You Need to Know
The SSA has confirmed that the COLA update will be revealed on October 24.
An SSA spokesperson noted, “The Bureau of Labor Statistics (BLS) will release the September 2025 Consumer Price Index (CPI) on October 24. The Social Security Administration will then use this data to compile the 2026 COLA.”
Starting January 1, 2026, Social Security and Supplemental Security Income (SSI) benefits for approximately 75 million Americans will be adjusted according to the new COLA, regardless of the ongoing government funding issues.
To determine these adjustments, the SSA uses the Consumer Price Index for Urban Wage and Office Workers (CPI-W), which reflects inflation based on the spending habits of young urban workers rather than retirees.
The BLS is responsible for providing critical economic indicators like the CPI-W.
Since 1975, annual adjustments have been based on CPI-W data gathered in the third quarter (July through September) to ensure benefits keep pace with general expenses, including housing, groceries, and medical costs.
How Much Will the Benefit Increase?
The current estimate from The Senior Citizen’s League (TSCL) suggests a COLA of 2.7%.
Shannon Benton, executive director of TSCL, commented, “Older adults nationwide are anxiously awaiting the COLA announcement. While an increase in monthly benefits would be appreciated, many might feel let down. According to our research, numerous seniors believe that COLAs do not adequately reflect their actual inflation experiences.”
The annual COLA affects all SSA-administered programs, such as:
- Retirement benefits, including spousal benefits based on a partner’s income
- Survivor benefits
- Additional Security Income
- Social Security Disability Insurance
What Happens Next
The COLA will apply to all benefits issued after January 2026.
