Changes Coming to Social Security Benefits in 2026
The announcement about the Cost of Living Adjustments (COLA) for Social Security in 2026 is just a few months away. If you rely on these checks, this information could significantly impact your financial planning for the year ahead.
To know how much you’ll actually receive, we’ll have to wait for the official announcement in October. Still, there are a few key points about COLA that can provide some insight into what you might be able to expect.
1. Understanding How COLA is Calculated
The Social Security Administration calculates COLA based on average inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It seems a bit complicated, but here’s the gist: they look at inflation data from July, August, and September of 2025, average it out, and then compare this average to the same months in 2024. If the numbers indicate a 3% increase, for example, that will be factored into the 2026 COLA.
Currently, there’s no available data to perform this calculation, so we’ll have to wait until the CPI-W for September 2025 is released.
2. Changes in Checks Due to COLA
The increase from COLA is expressed as a percentage. If you add this percentage to your current monthly check, you’ll see your new amount for 2026. For instance, if someone receives $2,000 now, a 2.5% increase would add $50, while a person with a $5,000 check would see an increase of $125.
3. Are COLAs Enough to Keep Up with Inflation?
The purpose of COLA is to maintain the purchasing power of Social Security benefits over time. However, some research suggests this goal hasn’t been fully met. Since 2010, benefits may have lost 20% of their purchasing power, which means what you could buy for a dollar back then would require $1.25 today, according to the Senior Citizens League (TSCL).
Unfortunately, there’s no sign that this trend will reverse. Current estimates predict the 2026 COLA will be around 2.5%, similar to the previous year. However, if inflation rises unexpectedly, we might see this number increase, though it could also turn out to be less than anticipated.
Addressing this shortfall might require some planning. If you have savings, consider using them alongside your Social Security checks. You might also look into part-time work or government benefits like the Supplemental Nutrition Assistance Program (SNAP) or Supplemental Security Income (SSI) to ease financial pressures.
As you think about budgeting for 2026, keep in mind that your plans might need to adapt once the official COLA announcement is made in October.
