Social security recipients will soon learn how much of an increase they will receive to payment changes next year.
The Cost of Living Adjustment, or COLA, for 2026 is due to be announced on Oct. 15.
COLA serves to counteract the effects on inflation, making sure social security benefits aren’t eroded by it.
The actual increase is determined by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to September of the current year, according to the Social Security Administration. The CPI-W itself is determined by the Bureau of Labor Statistics.
Current projections predict that next year’s COLA will be roughly a 2.7%, based on analysis from senior advocacy group The Senior Citizens League.
A 2.7% COLA would turn into an extra $54 per month for the average retired worker, increasing monthly from $2,008 to $2,062.
This adjustment may be eroded by the projected increase in Medicare Part B premium, which may go up 11.5%, according to a trustees report.
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