After being postponed because of the ongoing government shutdown, the Social Security Administration (SSA) has confirmed the date of the 2026 Cost-of-Living Adjustment (COLA) announcement.
The Significance of It
The government shutdown that furloughed employees of the Bureau of Labor Statistics and delayed the availability of important inflation data—the basis for the yearly update—caused the original announcement, which was supposed to be made on October 15, to be delayed.
Over 70 million Americans depend on Social Security benefits, and the yearly COLA establishes how much more they will get in 2026 to cover growing living expenses.
Things You Should Know
Newsweek has received confirmation from the SSA that the COLA update will be revealed on October 24.
Newsweek was informed by an SSA official that the Bureau of Labor Statistics (BLS) will release the September 2025 Consumer Price Index (CPI) on October 24. Additionally, on October 24, the Social Security Administration will use this release to create and announce the 2026 cost-of-living adjustment.
“Social Security and Supplemental Security Income (SSI) benefits for 75 million Americans will be adjusted per the 2026 COLA, beginning January 1, 2026, without any delay due to the current government lapse in appropriation.”
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which accounts for inflation based on the spending habits of younger urban workers rather than seniors, is used by the SSA to calculate cost-of-living adjustments.
The CPI-W and other important economic statistics are produced by the BLS, a federal institution.
To assist benefits stay up with everyday costs like housing, groceries, and medical care, these adjustments have been made annually since 1975 using CPI-W data gathered in the third quarter (July through September).
To what extent will benefits increase?
According to The Senior Citizen’s League’s (TSCL) most current forecast, the COLA is 2.7%.
TSCL executive director Shannon Benton stated, “Seniors across America are holding their breath with the COLA announcement around the corner.” Many will be dissatisfied, even though a higher COLA would be appreciated because it would enhance their monthly payments. Many seniors feel that the COLA does not accurately reflect the inflation they encounter, according to TSCL’s research.
All SSA-administered programs are subject to the yearly COLA, including:
- Benefits for retirement, such as spousal benefits determined on a partner’s income
- Benefits for survivors
- Security Income Supplement
- Insurance for Social Security Disability
All benefits issued after January 2026 will be subject to the COLA.