For those relying on Social Security benefits, October 15, 2025, is a key date to watch. That’s when the Social Security Administration (SSA) will announce the 2026 cost-of-living adjustment (COLA), which is expected to offer some relief for inflation.
While it’s still too early to know the exact increase, the odds of an above-average COLA are looking more likely as we near the end of 2025.
What is the Expected COLA for 2026?
The Senior Citizens League (TSCL), a nonpartisan organization that closely tracks COLA predictions, estimates a 2.7% increase for 2026. While the official number won’t be confirmed until October 15, this estimate is a significant improvement from the 2.1% prediction earlier in the year.
A 2.7% COLA means different things to different individuals depending on their benefit amount. The increase will impact those receiving the average benefit amount the most. However, if you currently receive more than the average benefit, your bump will be larger. Similarly, if you receive less, your increase will be smaller.
Impact on the Average Beneficiary
The average Social Security beneficiary in July 2025 could expect the following impact from a 2.7% COLA increase:
Average Monthly Benefit: The actual benefit amount will vary based on your individual circumstances. However, this increase is calculated from the average amount received in July 2025, which is often lower than the full benefits of higher earners.
It’s important to remember that average benefits tend to rise even without COLAs, primarily due to more seniors entering the program with higher lifetime earnings compared to previous generations. So, if you receive above-average benefits, you may see a slightly larger increase than what’s estimated here.
Could the COLA Be Higher Than 2.7%?
It’s always possible that the final COLA could end up being slightly higher than the estimated 2.7%. If that happens, beneficiaries will receive a bigger boost in their payments.
However, while that might sound like a welcome increase, it’s worth noting that the higher COLA would likely be consumed by rising costs of goods and services, rather than providing a true improvement to your financial situation.
What to Do If the COLA Isn’t Enough
Once the SSA announces the official COLA, they will send out updated benefit notices in December, showing beneficiaries their new 2026 payment amounts. However, you can estimate your COLA increase in advance by multiplying your current check by the expected 2.7%.
If the increase isn’t enough to cover your monthly expenses, it’s essential to adjust your budget ahead of time. Here are a few strategies you can consider:
Utilize Retirement Accounts: Consider drawing from retirement savings or other accounts if necessary.
Cut Expenses: Review your current spending and reduce non-essential costs.
Additional Income: Look for part-time work or explore other government benefits like Supplemental Security Income (SSI) if eligible.
Test out your plan early in 2026 and adjust as needed. If it isn’t sufficient, revisit your strategy and make further changes.
The $23,760 Social Security Bonus You Might Be Overlooking
Many retirees overlook some little-known benefits that could provide an extra boost to their retirement income. You could potentially qualify for a “Social Security bonus,” worth up to $23,760. If you haven’t explored these options, it’s worth looking into how these Social Security secrets could help maximize your retirement income.
