The annual cost-of-living adjustments (COLAs) for Social Security are anticipated to provide retirees with a modest increase in benefits in 2026. However, this may not be enough to keep up with the rising costs that retirees face.
Retirees May See A Monthly Social Security Bump Of $48 To $54 In 2026
According to a forecast, the average retiree could see a monthly increase of $48 to $54 in their Social Security benefits next year, reported The Motley Fool on Wednesday.
The cost-of-living adjustment (COLA) for 2026 is expected to be officially announced in the coming months.
The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the spending patterns of working households.
The Bureau of Labor Statistics will release the crucial September CPI-W data on Oct. 15, with the Social Security Administration set to announce the final 2026 COLA that same day.
2026 COLA Forecast Ranges From 2.4% To 2.7% Amid Rising Inflation Concerns
Forecasts for the 2026 COLA range from 2.4% to 2.7%. The Senior Citizens League (TSCL), which closely monitors inflation trends, has revised its estimate multiple times due to persistently high inflation. As of July, TSCL projects a 2.6% increase in benefits.
However, concerns remain that even a 2.6% COLA may fall short for many retirees. Critics argue that the CPI-W doesn't accurately reflect the expenses of older Americans, who spend disproportionately on housing and medical care, two categories that have been rising faster than overall inflation.
As a result, many fear the upcoming adjustment won't fully offset the actual cost increases retirees face.
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Historic COLA Could Break $2,000 Barrier, But Retirees Still Face Budget Pressure
In April, it was reported, Social Security's 2026 cost-of-living adjustment (COLA) may push the average monthly benefit for retired workers above $2,000 for the first time, according to early estimates.
A projected 2.3% increase could mean an extra $46 per month. However, many retirees may still struggle as the inflation measure used to calculate COLA—CPI-W—doesn't fully reflect seniors' actual expenses, particularly in housing and healthcare, where costs continue to rise sharply.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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