A modest boost in sight for seniors
Good news may be coming on the horizon for retirees. The Social Security Administration (SSA) will announce the 2026 cost-of-living adjustment (COLA) on October 15, subject to the government shutdown expiring first.
Early estimates from The Senior Citizens League and the Board of Trustees at Social Security show benefits will rise 2.7% in 2026, a small jump from the 2.5% rise in 2025. That works out to an extra $54 a month on average for the average retired worker starting with January 2026.
It may not seem like much, but every bit helps millions of older Americans with fixed incomes.
What the COLA really is
COLA is to help retirees keep purchasing power so that their Social Security benefits aren’t reduced in value over the years. Since 1975, these yearly increases have been calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Put simply, the government monitors how much prices rise on things like food, gasoline, rent, and medical care. When prices go up, Social Security payments rise by that same amount.
The calculation uses July, August, and September figures annually. Once the September inflation report is released, the SSA releases the new COLA. In 2025, inflation rose by 2.5%, which translated to a 2.5% increase in benefits. Going by this year’s pattern, 2026’s COLA is expected to be approximately 2.7%, according to projections at the moment.
What this means for the average retiree
The average monthly Social Security benefit for retired workers is currently about $2,005 based on June 2025 data. With a boost of 2.7%, that would bring it to about $2,059 a month—a $54 increase.
If you’re 65 and drawing Social Security benefits, your monthly payment should see a similar percentage boost. But your actual amount of increase will depend on the size of your current benefit.
For example:
- Someone receiving $1,600 per month could see about a $43 raise.
- Someone with a $2,500 monthly benefit might get around $67 more.
That extra cash could help cover rising costs for groceries, gas, or medical expenses—areas that have hit older Americans especially hard in recent years.
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When and how you’ll know your new payment
When the SSA determines the official COLA, it will send notices in December describing your new payment amount. Your letter will include:
- Your new monthly benefit
- Any Medicare premium deductions
- Federal tax withholdings (if required)
- You can also see your new benefit information sooner by checking your My Social Security account online.
- Payments that factor in the new COLA usually start in January 2026.
Why this year’s increase matters
While the 2026 COLA looks paltry compared to the historic 8.7% boost in 2023, it remains crucial in assisting retirees in keeping up with everyday costs. Costs for necessities such as shelter, healthcare, and groceries have continued to rise—even if aggregate inflation has moderated.
For most seniors, Social Security is the main source of income. Actually, close to 40% of retirees rely on it for more than half of their income, government figures report. That’s why even a modest boost—such as $44 to $54 more a month—can make a difference.
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The bottom line
If you’re turning or already 65, expect your Social Security check to increase by around 2.7% in 2026. That means an extra $40 to $60 a month for most retirees.
While not a game-changer, the adjustment helps protect your spending power and ensures your benefits keep pace with inflation.
Look for the official notice on October 15, and remember to review your My Social Security account later this year for your new benefit notice.
Even during uncertain economic times, the COLA is still a plus—a modest but regular way of making sure that seniors can continue to keep their financial security intact.
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