Seniors, Mark Your Calendars
The announcement for the 2026 Cost of Living Adjustment (COLA) is set for October 24. This is according to information from the Bureau of Labor Statistics (BLS), and it’s worth noting that this will happen regardless of the status of the U.S. government. On that day, the Consumer Price Index (CPI) for September will be released at 8:30 a.m. ET, which will allow the Social Security Administration to calculate the COLA.
Originally, the 2026 COLA was supposed to be announced on October 15, alongside the September CPI report. However, due to the government shutdown on October 1, that timeline got pushed back. Without the inflation data for September, the yearly COLA can’t be accurately determined. The annual adjustment relies on the average increase in the CPI for urban salaried and office workers (CPI-W) from July to September.
What Will COLA Be in 2026?
Recent estimates suggest that Social Security checks might see a rise of 2.8%, a slight increase from 2.7% the previous month. The overall consumer price index experienced a 2.9% rise in August, while the index for urban salaried workers increased by 2.8%.
A 2.8% COLA implies that the typical monthly Social Security benefit will rise by over $52. Back in August, the average monthly benefit was recorded at $1,864.87.
Will Other Data Be Released Later?
The BLS has clarified that the September CPI report is a special case meant to avoid delays in announcing the COLA.
“No other releases will be rescheduled or produced until normal government services resume,” the BLS stated. “This release allows the Social Security Administration to meet the necessary deadlines to ensure timely benefit payments.”
During the government shutdown, nearly all but one of the 2,055 employees of the department were furloughed.
Michael Feroli, JPMorgan’s chief U.S. economist, indicated that the Office of Management and Budget has instructed the BLS to bring back employees needed for the September CPI report. Yet, no dates for the release of other September statistics, such as the inflation report or retail sales data, have been established.
When Was the Last Time a COLA Announcement Was Delayed?
The last time the COLA announcement faced a delay was in October 2013, also coinciding with a government shutdown. At that time, the shutdown affected funding for the Affordable Care Act for 16 days starting October 1, 2013.
The deadline for the September CPI report back then was October 16, 2013, but it ended up being postponed until October 30, when the COLA for the following year was announced to have increased by 1.5%.
How Many People Receive Social Security Benefits?
In August, more than 74.5 million individuals received Social Security benefits. This group includes retired workers, disabled workers, survivors of deceased workers, and those on Supplemental Security Income.
