Retirement often costs more than many people expect, which is why so many older Americans lean heavily on Social Security. Even if you’ve saved up in a 401(k) or IRA, rising expenses can make those monthly benefits essential.
In recent years, inflation has made things even harder for seniors living on fixed incomes. That’s why the Social Security cost-of-living adjustment (COLA) is such an important lifeline—it helps retirees keep up with the rising cost of everyday needs.
Why Social Security COLAs Matter
The COLA exists to make sure Social Security benefits don’t lose value when inflation pushes up prices. Each year, benefits are adjusted based on inflation so retirees can maintain their buying power. Without these adjustments, seniors would find it much harder to manage basic expenses like groceries, housing, and healthcare.
Why September Is a Key Month for COLAs
September plays a big role in deciding how much the next year’s COLA will be. That’s because the adjustment is based on inflation readings from the third quarter of the year. Specifically, the Bureau of Labor Statistics tracks the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Here’s what to keep in mind:
In September, the CPI-W reading for August is released.
The direction of inflation during September has a huge impact on the final COLA.
For example, if inflation rises, retirees could see a larger boost in benefits for 2026 compared to the modest 2.5% raise at the start of 2025.
When Will the COLA Be Announced?
While retirees may be eager for answers, the official COLA for 2026 won’t be announced until October 15, 2025, when the September CPI-W data is released. Until then, experts can only offer rough estimates.
Since the COLA is based on July, August, and September inflation data, the complete picture won’t be available until all three months are measured.
What Retirees Can Do in the Meantime
Waiting for the COLA announcement can feel stressful if you’re on a tight budget. Here are some steps that might help in the meantime:
Review your monthly expenses to see where you can cut back.
Consider ways to boost income, like part-time work or gig jobs.
Look for local or government programs that can help with food, housing, or medical costs.
Even though a larger COLA in 2026 could bring relief, taking small proactive steps now can make your financial situation more secure.
A Hidden Social Security Bonus?
Many retirees don’t realize they may be eligible for strategies that can significantly boost their lifetime Social Security income. By understanding “hidden” benefits—like spousal benefits, delayed retirement credits, or survivor benefits—you could unlock thousands of extra dollars over time.
Unfortunately, many seniors miss out simply because they’re unaware of the rules.
Social Security COLAs play a crucial role in helping retirees keep up with rising costs. While the 2026 adjustment won’t be announced until October 15, September’s inflation data will give the biggest clue about what’s coming.
Until then, retirees should stay patient, manage expenses carefully, and explore ways to strengthen their financial security. A bigger COLA may help, but taking control of your money today is the best way to prepare for tomorrow.
