THE SOCIAL Security Administration (SSA) will soon announce the 2026 cost-of-living adjustment (COLA) which will give benefits a boost.
The announcement should take place on October 15, as long as the government shutdown has ended.
The official announcement should come in days as long as the government shutdown ends (stock photo).[/caption]
Beneficiaries may see an additional monthly income ranging from $37 to $59 (stock photo).[/caption]
The government shutdown went into effect on October 1, impacting several government agencies like the SSA.
Because of the shutdown, many federal employees have been furloughed and there may be a delay in releasing the COLA.
“A government shut down could potentially delay an announcement of the COLA, but remember, the data is for September and that has already been collected,” Mary Johnson, an independent Social Security and Medicare policy analyst, told USA TODAY.
However Social Security benefits will still be paid out to recipients on time, the administration said.
The buying power of Social Security benefits have been protected from inflation by COLAs tied to a subset of the Consumer Price Index (CPI) since 1975.
CPI-W, a subset of the price index, tracks prices across over 200 goods and services based on their relative importance to hourly wage earners.
Each year, the percent increase in the CPI-W during July to September becomes the COLA for the next year.
The CPI-W for the third quarter of 2024 increased 2.5%. Therefore, Social Security benefits received a 2.5% COLA in 2025.
COLA ESTIMATES
While the SSA still needs the inflation data from September to determine the 2026 COLA, The Senior Citizens League (SCL) estimates it will be 2.7%.
This would increase the average monthly benefit for retired workers by $54.
That would make the monthly payment $2,062, the SCL estimated.
During the last 20 years, COLA has been at an average of 2.6%.
PAYMENT CHANGE
The SCL also advised benefit recipients to prepare for a major change coming to how payments are delivered.
The SSA stopped mailing paper checks to recipients on September 30.
The change would only impact the less than 1% of beneficiaries.
The SSA now advises recipients to switch to electronic payment methods, like direct deposit or the Direct Express card.
The official COLA announcement should be issued in a press release on October 15.
The SSA will also send out notices by mail in December with exact dates and dollar amounts concerning updated benefits.
Additional monthly benefits breakdown
- 62-year-old retirees with an average benefit payment of $1,377 will have an additional income of $37.
- 63-year-old retirees with an average benefit payment of $1,392 will have an additional income of $38.
- 64-year-old retirees with an average benefit payment of $1,447 will have an additional income of $39.
- 65-year-old retirees with an average benefit of $1,613 will have an additional monthly income of $44.
- 66-year-old retirees with an average benefit of $1,809 will have an additional monthly income of $49.
- 67-year-old retirees with an average benefit of $1,963 will have an additional monthly income of $53.
- 68-year-old retirees with an average benefit of $2,004 will have an additional monthly income of $54.
- 69-year-old retirees with an average benefit of $2,052 will have an additional monthly income of $55.
- 70-year-old retirees with an average benefit of $2,188 will have an additional monthly income of $59.
Source: Yahoo Finance
The notices will also have details concerning any deductions for federal income tax withholdings and deductions for Medicare.
COLA notices are also accessible through the my Social Security portal.
MORE MONEY
The additional monthly income would be based on a retired worker’s age.
Based on the average monthly benefit of June 2025, a 62-year-old retired worker receives $1,377 before COLA. They would receive an additional monthly income of $37 at a 2.7% COLA.
A 65-year-old retired worker would receive an additional $44 after COLA, making their average payment $1,657.
As the average benefit increases between ages 62 and 70, a higher monthly additional income will be noticeable.
