Social Security’s 2026 Cost-of-Living Adjustment (COLA) Was Just Updated. Here’s Where It Stands.

Social Security commonly undergoes changes each year. The program’s earnings-test limits tend to rise from one year to the next, as does its wage cap. But perhaps the most important update in the context of Social Security is the program’s cost-of-living adjustment (COLA).

Each year, Social Security benefits are eligible for a COLA automatically. COLAs are meant to help ensure that Social Security recipients can maintain their buying power in the face of inflation.

The Social Security Administration won’t be able to officially announce a 2026 COLA until mid-October. But based on inflation data, experts are able to make a pretty good guess as to what next year’s COLA will amount to.

That projection was recently updated, and you may be curious to know where it stands.

The non-partisan Senior Citizens League, an advocacy group, tracks inflation data during the year to keep Social Security recipients updated on potential COLAs for the new year. Based on inflation data from August that was released in September, the group thinks 2026’s COLA will amount to 2.7%. This is the same projection it put out a month prior.

Now for context, 2025’s Social Security COLA was 2.5%. If the Senior Citizens League is correct, it means Social Security recipients may be looking at a more generous bump in 2026 than what they received earlier this year.

A 2.7% Social Security raise may sound better than 2.5%, but it’s certainly not the most generous. The good news is that there’s still wiggle room for 2026’s Social Security COLA to come in higher than 2.7%.

Social Security COLAs are based on inflation data throughout the third quarter of the year. Because we’re still in September, we don’t have inflation readings for the current month. That information won’t be available until October, which is why a COLA can’t officially be announced until then.

However, if inflation ends up surging in September, then 2026’s Social Security COLA could be higher than 2.7%. Whether that’s positive news or not, though, is debatable.

A larger Social Security COLA is a sign that living costs are rising at a quick pace. But that could be harmful to not just retirees on Social Security, but consumers across the board. And even if seniors get a larger COLA to compensate, it may not be enough to make up for higher prices on things like food, fuel, utilities, and more.

For this reason, the best thing for budget-conscious retirees on Social Security to do in the coming months is assess their spending and see if it’s possible to make changes, or look at working part-time. And the best thing for workers today to do is accumulate plenty of retirement savings to avoid becoming too reliant on Social Security COLAs later in life.

The best thing Social Security COLAs can do is keep pace with inflation, and they often fail in that regard. So having options for income outside of Social Security is the most ideal retirement scenario.

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Join Stock Advisor to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Social Security’s 2026 Cost-of-Living Adjustment (COLA) Was Just Updated. Here’s Where It Stands. was originally published by The Motley Fool