Personal Finance

COLA Increase 2026: What Social Security Recipients Can Expect

The SSA ensures people receive enough money to meet their daily needs, providing financial assistance to those with low income and weaker groups, adjusting payments based on inflation.

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.

New $967 Social Security payment on May 1: Are you Eligible?

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.

SSDI Payment May 2025: When Will You Get Your Social Security Disability Check?

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%
Farheen Ashraf

Farheen Ashraf is a History graduate. She writes on a variety of topics, including business, entertainment, laws, poetry, stories, travel, and more. Her passion for writing has led her to explore a variety of genres.

Recent Posts

$967 Social Security Payment May: What You Need to Know

New SSI payment of up to $967 is coming on May 30. It’s not extra…

2 days ago

CalWORKs June 2025 Payments: When Will You Get Your Food Benefits?

Families getting CalWORKs help will get their June 2025 money between the 1st and 3rd.…

3 days ago

Social Security June 2025: What are the new changes and who’s affected?

Social Security checks in June 2025 will follow the usual schedule, but some people may…

3 days ago

How Medicare Could Change Under New ‘One Big Beautiful Bill’ Plan

House Republicans have passed a huge new bill that could change Medicare in big ways.…

5 days ago

$600 Social Security SSI Payment: Will you get this payment?

Thousands of people are asking if SSI recipients will get a $600 boost in June…

5 days ago

Student Loan Delinquency Is Worst in These US States

Student loan delinquencies are rising fast, especially in Southern states like Mississippi, Alabama, and West…

6 days ago