AMERICANS will have their Social Security COLA bumped up more than last year’s increase or 2.5 per cent.
Retirees are likely to see the rise for 2026’s payment at a rate larger than expected due to the latest inflation data.
Americans could see a COLA surge bigger than last year’s increase[/caption]
A new estimate from the Senior Citizens League puts Social Security‘s cost-of-living adjustment (COLA) at 2.7 per cent next year.
That would mark an increase from 2025’s 2.5 per cent surge.
And this boost would raise the average monthly benefit for retired workers by $54.
This takes the amount from $2,008 on average to 2,062, according to the senior advocacy group.
The inflation report which released on Thursday also showed that consumer prices have risen 2.9 per cent in August compared to 12 months ago.
This also marked the fastest annual pace since January.
Shoppers are set to lose out from this – while for seniors, it could mean bigger Social Security checks.
The government determines the COLA by comparing the average rate of inflation rate from July to September with the same period in the last year.
The calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.
This rose at an annual pace of 2.8 per cent in August.
The new boost in free cash also means retirees’ checks have topped $2,000 for the first time ever.
With July and August inflation data already taken into account, the COLA measurement window has one month left.
September’s statistics will determine whether the final adjustment lands above or below the current 2.7 per cent estimation.
A 2026 COLA of 2.7 per cent would be slightly higher than this year’s 2.5% adjustment.
But it would still be below the historic 3.2 per cent increase in 2024.
Over the last two decades, the COLA has averaged 2.6 per cent, according to The Senior Citizens League.
The Social Security Administration will announce the official COLA in mid October.
After they release the final amount, the increase will go into effect in January 2026.
Retirees will benefit from higher inflation numbers[/caption]
