Social Security COLA for 2026 Expected to Exceed 2.5% Increase

The Senior Citizens League expects Social Security's cost-of-living adjustment (COLA) for 2026 to be 2.7%, higher than this year's 2.5% increase. The group anticipates the increase due to continued inflation. The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers. The increase would be helpful for retirees, who received an average monthly benefit check of $2,006.69 in July.

The Senior Citizens League has predicted that Social Security beneficiaries will see a 2.7% cost-of-living adjustment (COLA) for 2026. This projection is higher than the 2.5% increase received this year and is primarily attributed to continued inflation [1].

The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration uses the average inflation rate from July, August, and September of the current year compared to the same months in the previous year to determine the COLA. The projected increase would be the highest since 2019, when the COLA was 2.8% [2].

The COLA is designed to ensure that Social Security benefits keep pace with inflation, helping retirees maintain their purchasing power. The average monthly Social Security benefit for retired workers was $2,005.69 in July 2025, according to the Senior Citizens League. A 2.7% increase would boost this amount to approximately $2,068.70 [1].

However, the final COLA will be determined by the Social Security Administration after it considers the remaining two months of inflation data for 2025. Experts predict that inflation rates could rise later in the year due to tariffs, which may impact the final COLA calculation [2].

References:
[1] https://finance.yahoo.com/news/social-security-2026-cost-living-164048211.html
[2] https://www.cnbc.com/2025/08/12/cola-2026-social-security-cost-of-living-adjustment-estimate.html