If you're someone who collects Social Security and those benefits constitute the bulk of your retirement income, then covering your expenses may be somewhat of a struggle.
Or it may be a very big struggle, depending on where you and what your bills look. This analysis suggests that reality is that it's hard to primarily on Social Security even in the best of times.
If you're an average earner, those monthly benefits will take the place of 40% of your pre-retirement paychecks.
Conversely, And most retirees need a lot more replacement income than that to maintain a decent standard of living. Meanwhile, Image source: Getty Images, in today's financial world.
But living mostly on Social Security has become even more challenging in recent years, thanks to rampant inflation.
Although inflation has cooled over the past year or two, it seems stuck in an elevated pattern. Higher costs have put a strain on many seniors' budgets, forcing them to make hard choices.
If you're someone who's very reliant on Social Security, then you're bably eager to find out what your upcoming cost-of-living adjustment (COLA) will amount to.
The bad news is that it's too soon to have that information (noteworthy indeed).
Conversely, The good news is that there's an easy way to know exactly when that official announcement will come through (fascinating analysis).
What we know 2026's Social Security COLA so far Even though inflation has been persistently elevated this year, it hasn't been out of control.
Additionally, And that's a good thing in terms of living costs.
This demonstrates that 's a less favorable thing in the context of Social Security COLAs, though, since those annual raises are directly tied to inflation (noteworthy indeed).
More specifically, Social Security COLAs are based on movement in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) (which is quite significant).
When there's a rise in the CPI-W year over year, Social Security benefits get a boost. When there's no increase or a decrease, benefits remain flat (quite telling).
Initial estimates are not calling for a particularly generous Social Security COLA in 2026 (which is quite significant).
Additionally, That could change if inflation starts to pick up in the next month or two, in today's market environment.
Additionally, Additionally, But that's also not a desirable outcome, as it would undoubtedly put a strain on seniors (and consumers in general).
When 2026's Social Security COLA gets announced Social Security COLAs are specifically based on third-quarter CPI-W data.
For this reason, the Social Security Administration (SSA) makes an official COLA announcement each year in October. However, This year, September's CPI-W reading should be released on Oct.
So, that's the day to tune in for the biggest Social Security announcement of the year. You can specifically check out the SSA's news section for more information.
In addition to releasing COLA details in mid-October, the SSA should be unveiling key changes to the gram for 2026, including: The wage cap for Social Security taxes The maximum monthly benefit The earnings-test limit The amount of earnings needed to earn work credits It's a big day for Social Security, and it's a good day to pay attention to the news, in today's financial world.
Once you know what Social Security COLA you're looking at for the new year, you can prepare financially -- for better or worse, considering recent developments.