Social Security COLA 2026: What to Expect
Each year, Social Security adjusts benefits through a Cost-of-Living Adjustment (COLA) to help offset the impact of inflation. The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). It compares inflation from July through September of one year to the same period in the previous year. The official announcement for the Social Security COLA 2026 is usually released in October 2025.
2026 COLA Projections
The Senior Citizens League and other analysts are projecting a 2.7% COLA for 2026. That’s a slight bump compared to 2025’s 2.5% increase and marks the fifth consecutive year with an adjustment above 2.5%.
For the average Social Security retirement benefit of about $2,007 per month, a 2.7% increase means an extra $54 per month, or roughly $648 per year. For someone receiving $1,500 monthly, the raise would be closer to $40 per month.
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Medicare Premiums Could Offset Gains
While a COLA increase is welcome, retirees must also consider rising healthcare costs. WE expect to see an 11.6% rise in Medicare Part B premiums in 2026, jumping from $185 in 2025 to around $206.50 per month.
That increase could significantly cut into the COLA. For many retirees, instead of seeing the full $54 monthly boost, the actual net gain may be closer to $30–$40, depending on their income level and Medicare plan choices.
Why It Matters
A 2.7% COLA may help, but it doesn’t always reflect the real inflation retirees face. Seniors often spend a larger share of their budget on housing, utilities, and especially healthcare; areas where costs are rising faster than the CPI-W measures.
Preparing for 2026
- Budget carefully. Plan for only a modest increase after Medicare deductions.
- Review Medicare options. Choosing the right plan can help you preserve more of your COLA.
- Consider supplemental income. Investments, part-time work, or savings can provide an additional buffer against rising costs.
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Bottom Line
The 2026 Social Security COLA will provide a modest increase, but higher Medicare premiums will likely reduce the real benefit retirees see in their checks. By planning ahead and managing healthcare costs, beneficiaries can make the most of the adjustment.