Home / Business and Economy / Social Security COLA 2026 Payments to Rise by $648 Annually
Social Security COLA 2026 Payments to Rise by $648 Annually
24 Oct
Summary
- Social Security COLA 2026 to increase by 2.7%, adding $648 annually
- Announcement coming on October 24, 2025, affecting 75 million beneficiaries
- Payments to start in January 2026, with SSI recipients seeing earlier increase
On October 24, 2025, the Social Security Administration (SSA) will announce a 2.7% cost-of-living adjustment (COLA) for 2026, affecting nearly 75 million beneficiaries. This increase is expected to raise the average monthly Social Security payment by $54, from $2,008 to around $2,062, resulting in an estimated $648 annual boost.
The COLA is designed to help Social Security and Supplemental Security Income (SSI) recipients keep pace with inflation. The adjustment is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of goods and services. The SSA will automatically apply the increase to benefit checks starting January 2026, with SSI recipients seeing the boost slightly earlier in late December 2025.
While the projected 2.7% COLA for 2026 is close to the 25-year average of 2.58%, experts note that retirees' expenses have been rising faster than overall inflation. Advocacy groups are urging lawmakers to consider alternative inflation measures, such as the Consumer Price Index for the Elderly (CPI-E), which better reflects seniors' spending patterns.
