For many retirees, Social Security checks are a critical part of their income, helping to cover living expenses during retirement. While your personal savings may help supplement your income, your Social Security payments are key to maintaining your standard of living.
Every year, these payments are adjusted for inflation through a Cost-of-Living Adjustment (COLA), announced in October and enacted with the December payment (received in January of the following year). So, what does the 2026 COLA look like, and how will it impact your payments?
Current COLA Projections for 2026
As of now, the 2026 COLA is projected to be 2.7%, a modest increase that would provide some relief to retirees facing inflation.
This figure comes from the Senior Citizens League (TSCL), a nonpartisan senior group that monitors inflation and makes monthly COLA predictions. Here’s a brief look at how the COLA predictions evolved throughout 2025:
January 2025: Initial predictions were a low 2.1%, which was far less than what seniors had seen in recent years.
February 2025: The projection rose slightly to 2.2% to 2.3% as inflation concerns started to take shape, largely due to President Trump’s tariffs.
March to July 2025: The projections continued to rise slowly, with each month seeing a 0.1% increase, bringing the final projection for 2026 to 2.7%.
While 2.7% is above average compared to the last 25 years, it may still be disappointing for some retirees who have grown accustomed to higher COLAs in recent years.
Impact on Your Monthly Benefits
For the average Social Security recipient, the 2.7% COLA will result in an additional $54 on their monthly check (based on the $2,007 average monthly benefit as of July 2025). Here’s a breakdown:
Average retiree: A $54 increase, bringing the average benefit to $2,061 per month.
Spousal benefits: Those receiving spousal benefits, averaging $954 per month in July 2025, will see a $26 increase.
If your current monthly benefit is higher than the average, your increase could be larger. For example, if you already receive $3,000 per month, a 2.7% COLA would add $81 to your check.
How the COLA is Calculated
The official 2026 COLA will be announced on October 15, 2025, after the final inflation data for the third quarter of 2025 is released. The Social Security Administration calculates the COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
They take the average of the CPI-W for July, August, and September of 2025, and compare it to the same months in 2024. The resulting percentage increase is the COLA.
At this point, we are still waiting on August and September 2025 CPI-W numbers. While 2.7% is the current estimate, it could change slightly depending on the final data. However, this figure gives a good ballpark for what to expect next year.
What to Do If Your COLA Isn’t Enough
Even with the COLA increase, some retirees may still find it challenging to make ends meet, especially if inflation continues to outpace Social Security adjustments. If you find that your Social Security check isn’t enough to cover your expenses, consider these options:
- Reduce Expenses: Review your budget to find areas where you can cut back, such as discretionary spending or finding lower-cost alternatives for essential services.
- Rely on Personal Savings: If you have personal savings or retirement accounts, consider using those funds to bridge any gaps.
- Explore Additional Benefits: Depending on your circumstances, you may qualify for other government assistance programs, such as Supplemental Security Income (SSI), food assistance, or housing support.
Plan Ahead for 2026
Once the official COLA is announced in October, you’ll receive a personalized COLA notice in December, outlining the exact amount of your benefit increase. This will help you finalize your budget for 2026 and prepare for any potential adjustments in your income.
The $23,760 Social Security Bonus Most Retirees Overlook
In addition to regular Social Security benefits, there are little-known Social Security strategies that could help increase your retirement income.
One potential strategy involves optimizing your filing age, maximizing spousal benefits, or utilizing special programs that many retirees overlook. Learn more about these Social Security secrets to help ensure a more secure financial future.
