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Social Security COLA 2026 forecast
As the September inflation data is set to be released on October 15, retirees are watching the Social Security Administration (SSA) get ready to make the 2026 cost-of-living adjustment (COLA) announcement for millions of retirees that are dependent on these funds. The annual boost is important, but this year, it holds extra significance with the pressures of increasing inflation fueled by recent US president Donald Trump’s tariffs and economic instability, as per a report.Here’s what retirees should know.How Is the 2026 Social Security COLA Calculated?The COLA is intended to ensure that Social Security benefits stay up to date with inflation, calculated on the basis of a gauge referred to as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures price changes on major items and serves as the foundation for the annual raise.ALSO READ: Pop Mart shares tank as Labubu doll hype vanishes, $13 billion gone in flash – what’s the outlook?2026 Social Security COLA Forecast Rises to 2.7%As The Senior Citizens League’s most recent forecast indicates, the nation’s largest nonprofit organization lobbying on behalf of seniors, the 2026 COLA will be 2.7%, an increase from 2.5% for the current year, as per The Motley Fool. This translates into the average retired worker who earned $2,008 monthly in August 2025, potentially increasing their monthly benefit by some $54 next year to a level of around $2,062.Live EventsFor most retirees, even a small boost like this will be significant in covering monthly bills.ALSO READ: A Star that keeps dying? Scientists shocked by cosmic explosion defying all expectationsCOLA Might Not Reflect Real Retiree ExpensesBut there’s a drawback. The CPI-W assumes the spending patterns of young, working people, not retirees. Older people tend to devote more money to housing and health care, and less to transportation, but the CPI-W puts a lower weight on housing and health care and a higher weight on transportation, as per The Motley Fool report.In 2025, housing expenses rose almost 4%, and medical expenses increased 3%, both higher than the 2.5% rate of overall inflation, according to the report. At the same time, transportation costs hardly rose at all, just 0.2%, reported The Motley Fool. This suggests the official COLA may be low in its estimate of actual inflation pressure against seniors, according to the report.A Familiar Pattern: 2024 and 2025 COLAs Also Fell ShortSo that means, while benefits will increase, they might not increase enough to keep pace with the true cost increases retirees face, trimming their purchasing power. This has been the pattern of late, with COLAs in 2024 and 2025 also insufficient, leaving many retirees feeling pinched, as per The Motley Fool. History is likely to repeat itself in 2026, which is bad news for retirees.FAQsWhat is the expected Social Security COLA for 2026?The latest forecast is 2.7%, according to The Senior Citizens League.When will the 2026 COLA be officially announced?The SSA will announce it on October 15, once September inflation data is released.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onhow much will Social Security increase in 20262026 Social Security COLA forecastSocial Security inflation adjustmentinflation impact on retireesSocial Security benefits increaseSocial Security benefit increase 2026how is Social Security COLA calculatedSocial Security COLA October 15 announcementwhy Social Security COLA is not enough(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates….moreless
