Will 2026's Social Security COLA Be Larger Than 2025's? Here's What We Know So Far.
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Interestingly, From an analytical perspective, When the Social Security Administration announced last October that benefits would be increasing by 2. 5%, many older Americans were unhappy, and understandably so. 5%...
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July 27, 2025
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Interestingly, From an analytical perspective, When the Social Security Administration announced last October that benefits would be increasing by 2. 5%, many older Americans were unhappy, and understandably so. 5% cost-of-living adjustment (COLA) was the smallest in years (this bears monitoring)
Additionally, And coming off that stingy raise, many seniors are no doubt hoping for a much more generous COLA in 2026
But will they get one
That's the big question, considering recent developments
Here's what we know so far
Image source: Getty Images
Things look mising -- to a point The Senior Citizens League, an advocacy group, makes predictions on Social Security COLAs throughout the year to try to give beneficiaries a sense of what to expect in the new year, considering recent developments
Those jections aren't just random -- they're based on the most recent inflation data available
Meanwhile, In June, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 2. 6% on an annual basis
Additionally, It's the CPI-W that's used to calculate Social Security COLAs each year
On the other hand, Ing the release of that information, The Senior Citizens League upped its 2026 Social Security COLA jection from its previous 2. 5% estimate to 2
It's worth noting that the group's COLA jection for 2026 has been steadily increasing month to month in line with changes in inflation
That said, that 2 (this bears monitoring)
Nevertheless, 6% COLA jection is just that -- a jection (an important development)
No one can predict with certainty what next year's Social Security COLA will amount to at this stage because that number is based on third-quarter changes to the CPI-W
At the same time, It's for this reason that Social Security COLAs are typically announced in October
Don't bank on a large 2026 Social Security COLA either way If you're someone who gets a monthly paycheck from Social Security, you may be hoping for a more robust COLA in 2026 than you got this year
You may even be in a place where a 2. 6% raise versus a 2
Nevertheless, 5% raise makes a difference
But rather than hold out hope for a generous Social Security COLA in 2026, a better bet may be to reassess your financial situation and see whether there are things you can do to imve it on your own
The reality is that while inflation has been ticking upward these past few months, we don't know whether this trend will continue
And even if next year's Social Security COLA is larger than 2025's, it doesn't guarantee that you'll end up with more buying power
Remember, a larger Social Security COLA only means that inflation is picking up
So, what you gain in the form of a more generous COLA, you lose in the form of price increases
Additionally, In light of that, now's the time to assess your spending to determine whether there's room to cut expenses
However, That could mean downsizing or relocating to an area that's less expensive overall
Furthermore, You may also want to consider securing some income outside of Social Security, whether by joining the gig economy or seeking out a part-time job, in this volatile climate
If you're in a place where you truly need a big boost to your monthly Social Security checks, it means you bably need more than just a COLA to see your financial situation change for the better, in today's market environment.
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