According to a 2023 study from the Center on Budget and Policy Priorities, Social Security keeps around 22 million Americans out of poverty, including 16 million adults aged 65 and older.
October is one of the most important months of the year for Social Security beneficiaries, as it’s when the upcoming cost-of-living adjustment (COLA) is announced. The COLA is an annual raise that helps benefits keep up with inflation and maintain their buying power as costs increase.
Here’s when you can expect the 2026 COLA to be announced and what it might mean for you.
The Social Security Administration calculates the COLA using inflation data from July, August, and September. Originally, the Bureau of Labor Statistics was set to release September’s data on Oct. 15, but due to the government shutdown, it’s been delayed until Oct. 24.
We won’t know the official COLA until then, but some experts already have a good idea of where it might land. Analysts at nonpartisan advocacy group The Senior Citizens League forecast that next year’s adjustment will be 2.7%, based on available inflation data. Unless September’s figures differ significantly from what’s anticipated, the actual COLA will likely be very close to 2.7%.
Exactly how far that bonus will go depends on your benefit amount. According to 2024 data from the Social Security Administration, this is the average benefit among retired workers age 62 to 80, as well as the adjusted benefit after a 2.7% COLA:
|
Age |
Avg. Monthly Benefit Amount |
Avg. Monthly Benefit After 2.7% COLA |
|---|---|---|
|
62 |
$1,342 |
$1,378 |
|
63 |
$1,364 |
$1,401 |
|
64 |
$1,425 |
$1,463 |
|
65 |
$1,611 |
$1,654 |
|
66 |
$1,764 |
$1,812 |
|
67 |
$1,930 |
$1,982 |
|
68 |
$1,980 |
$2,033 |
|
69 |
$2,040 |
$2,095 |
|
70 |
$2,148 |
$2,206 |
|
71 |
$2,115 |
$2,172 |
|
72 |
$2,117 |
$2,174 |
|
73 |
$2,088 |
$2,144 |
|
74 |
$2,054 |
$2,109 |
|
75 |
$2,065 |
$2,121 |
|
76 |
$2,076 |
$2,132 |
|
77 |
$2,046 |
$2,101 |
|
78 |
$2,061 |
$2,117 |
|
79 |
$2,013 |
$2,067 |
|
80 |
$2,006 |
$2,060 |
Data source: Social Security Administration. COLA = cost-of-living adjustment.
Across all age groups, the average COLA raise will be between $36 and $58 per month, assuming the adjustment is 2.7%. While that extra income can help with rising costs, it may not go as far as some retirees are expecting.
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