For many retirees who don’t have much savings, Social Security is a lifeline. These seniors depend heavily on the yearly cost-of-living adjustments (COLAs), which increase benefits to keep up with inflation.
But COLAs aren’t automatic. They only happen when inflation rises. If inflation stays flat, Social Security payments remain the same. The good news is that benefits are never reduced — even if inflation drops.
Now, many seniors are wondering: What will the COLA be for 2026?
How Social Security COLAs Are Decided
Social Security COLAs are based on inflation data from the third quarter of the year (July, August, September). That’s why the official 2026 COLA won’t be announced until October 15, 2025.
Until then, experts look at current inflation trends to estimate what the adjustment might be.
What We Know About the 2026 COLA So Far
In 2025, seniors received a 2.5% COLA increase, which many felt was too small.
Early estimates for 2026 look slightly better:
The Senior Citizens League expects a COLA of about 2.7%.
The final figure could move a bit higher or lower depending on inflation data from August and September.
Even so, it’s likely that the 2026 COLA will be larger than 2025’s.
Should Retirees Be Happy With 2.7%?
It depends on perspective.
On the positive side, 2.7% is higher than last year’s raise. In fact, there have been years when the COLA was much smaller — even 0%.
On the negative side, 2.7% is still not a big boost. For seniors struggling with rising expenses, it may not cover much beyond basic inflation.
The silver lining is that a moderate COLA suggests that inflation is under control. This could mean greater economic stability heading into 2026.
Managing Your Finances Beyond COLA
If you rely heavily on Social Security, it may be wise to review your budget and lifestyle. A modest COLA may not be enough to bridge financial gaps. Some steps to consider:
Cutting expenses – For example, switching to a cheaper car, or giving up one altogether if you live in a walkable area.
Reassessing spending – Focus on essentials like food and electricity, while trimming luxuries.
Part-time work – If you’re able, a few hours of work each week could boost your income more than a COLA increase.
These adjustments can provide more stability than relying only on the yearly Social Security raise.
The 2026 Social Security COLA is expected to be around 2.7%, slightly higher than the 2025 increase. While it may not feel like a big jump, it signals that inflation is stabilising.
Seniors who depend heavily on Social Security should prepare by reviewing their finances, trimming non-essential expenses, and considering other sources of income. The official COLA figure will be announced on October 15, 2025, but planning ahead is the best way to ensure retirement security.
