Additional Coverage:
Social Security payments are projected to rise again in 2026 for the approximately 70 million Americans who rely on these benefits. The Senior Citizens League estimates a 2.5% cost-of-living adjustment (COLA) for 2026, a slight increase from their earlier projections.
This projected increase follows a recent adjustment to the Full Retirement Age (FRA). For those born in 1959, the FRA is now 66 years and 10 months.
For those born in 1960 or later, the FRA is 67. Beneficiaries are reminded to keep their personal information, including age, address, and marital status, current with the Social Security Administration to avoid payment delays.
While the 2.5% COLA for 2025 represented the smallest increase since 2021 (adding an average of $48 to monthly checks), the 2026 projection reflects anticipated higher inflation. This follows significantly higher COLAs of 5.9% in 2022 and 8.7% in 2023.
However, potential issues with data collection at the Bureau of Labor Statistics (BLS) could affect the accuracy of future COLA calculations. A hiring freeze at the BLS has reportedly reduced the number of businesses surveyed for the Consumer Price Index (CPI), raising concerns about the reliability of inflation estimates.
The Senior Citizens League warns that an inaccurate CPI could pose a significant risk to seniors, as a COLA that falls short of actual inflation would erode their purchasing power over time.
The official 2026 COLA will be announced by the Social Security Administration in October, based on third-quarter data.