The Social Security cost-of-living adjustment (COLA) is an essential part of financial security for millions of retirees and people with disabilities in the United States. This annual adjustment helps ensure that benefits keep up with inflation and maintain their purchasing power over time. For 2026, the Social Security Administration (SSA) will announce the new COLA on October 15, bringing hope for beneficiaries who have been struggling with the rising cost of living.
Who Qualifies for COLA Benefits?
The following individuals are eligible to receive COLA adjustments:
- Retired workers
- Disabled workers
- Survivors of deceased workers
- Those receiving Supplemental Security Income (SSI)
These groups rely on Social Security benefits to cover basic expenses, and any increase in COLA helps mitigate the impact of inflation.
How Is COLA Calculated?
The SSA determines COLA based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a critical measure of price changes in goods and services. The calculation process for COLA works as follows:
- The SSA averages the CPI-W data for the third quarter of the current year (July, August, and September).
- This average is compared to the average CPI-W data for the third quarter of the previous year.
- The percentage increase between these two averages determines the COLA for the next year.
The result is an annual adjustment to Social Security benefits, helping recipients keep pace with inflationary pressures.
As we approach October 15, beneficiaries eagerly await the announcement of the 2026 COLA, hoping it will provide the financial relief they need in the face of rising living costs.
