COLA Increase 2026: Many people in America depend a lot on Social Security payments. This includes older adults, retired people, and people living with disabilities. For many of them, these benefits are their only source of money to live on.
That’s why the Social Security Administration, or SSA, needs to make sure that these people receive enough money to handle their day-to-day needs. These monthly payments usually come either through direct deposit to bank accounts or paper checks.
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The SSA was created to help people with low income and those who are part of weaker groups in society. They are supposed to give them the financial help they need. Every year, the SSA looks at how prices are changing in the country. If prices go up, they raise Social Security payments to help people keep up with the higher cost of living. This yearly increase is called the Cost-of-Living Adjustment, or COLA.
Expected COLA for 2026 Could Be Lower Than Before
The COLA for 2025 is already set at 2.5%, which is lower compared to the past few years. And for 2026, experts think the increase might be even smaller. Right now, many reports and news stories say the COLA for 2026 could fall between 2.0% and 2.6%. Some experts believe it might end up being about 2.2%. But this is not confirmed yet. The SSA will look at official numbers and make the final decision in October 2025.
This small increase in 2026 is making people curious and even a bit worried. Many retired people and those who rely on Social Security are already finding it hard to keep up with costs, like rent and medical bills. Even after getting the 2.5% boost in 2025, they’re still struggling.
How the Government Decides the COLA Increase
To figure out the right COLA, the government uses something called the Consumer Price Index for Urban Wage Earners and Clerical Workers, also known as CPI-W. This index shows how much prices go up or down for things people usually buy. The SSA checks this data, especially for the months of July, August, and September in 2025, to decide the 2026 COLA.
If the inflation rate goes up, meaning prices get higher, then the COLA also usually goes up. But right now, inflation seems to be slowing down a bit. That’s why experts think the 2026 increase will be smaller than what people saw in 2022, 2023, or even 2024. Still, the exact number will only come out in October 2025, so for now, all these predictions are just guesses.
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What Could Change the COLA Numbers?
There are still many things that could change how big or small the COLA is for 2026. For example, if the U.S. government adds more tariffs, which are taxes on products from other countries, then prices might rise again. If that happens, it could raise the inflation rate and lead to a bigger COLA. But if the economy slows down or goes into a recession, the COLA might be even smaller than 2.2%.
One article says, “The current COLA 2026 predictions are based on the CPI-W and inflation rates calculated from Jan. 2025.” This means that the government is already watching how prices are changing this year to help guess next year’s increase. But people should remember that these are just early guesses and not the final numbers.
There are many stories going around the internet about the 2026 COLA increase. Some people believe them right away and start worrying. But these stories might not be true. Nothing is confirmed until SSA announces the official COLA increase, and that will only happen in October 2025. .
Expected Social Security COLA Increase in 2026
We have shared the table below, which gives information about the COLA increase in the past few years and expected increases.
| Year | COLA Increase (%) |
|---|---|
| 2023 | 5.9% |
| 2024 | 8.7% |
| 2025 | 2.5% |
| Expected 2026 | 2.2% |
