"Although there's no official announcement yet, there are plenty of projections that have already been made by experts regarding how big the Social Security benefit increase will be next year. For example, the Senior Citizens League, a major senior advocacy group, has projected that Social Security recipients are in line for a 2.7% COLA, or raise as it's more commonly called."
"Cost-of-Living Adjustments are not like traditional raises, where you're rewarded for performing well at work and given more money because of it. Instead, COLAs are intended only to help benefit recipients avoid losing buying power due to the impact of inflation. The amount of the COLA is determined based on how much the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) reveals that prices rose during the third quarter of the year."
A projected 2026 Social Security Cost-of-Living Adjustment is likely to be announced on October 24, 2025, once third-quarter CPI-W data are available. Projections from groups like the Senior Citizens League estimate a roughly 2.7% COLA, up from 2.5% in 2025. COLAs are designed to offset inflation-driven price increases rather than function as merit-based raises. A larger COLA therefore signals higher inflation and can mean that nominal benefit increases still leave retirees with reduced real purchasing power. Retirees may need to adjust budgets, seek inflation-protected income, and review healthcare and prescription cost strategies.
Read at 24/7 Wall St.
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