Social Security recipients will now be awaiting important news regarding their benefits for 2026 on October 24, as the ongoing government shutdown has postponed the announcement of the Cost of Living Adjustment (COLA). Originally set for October 15, the delay affects approximately 72.5 million beneficiaries who rely on the COLA for their monthly payments.
Currently, the majority of the U.S. Bureau of Labor Statistics’ workforce is on furlough, but officials have indicated that some employees will be recalled temporarily to handle essential tasks. “No other releases will be rescheduled or produced until the resumption of regular government services,” the bureau stated. This particular announcement is crucial for the Social Security Administration, allowing it to meet statutory deadlines that ensure timely and accurate benefit payments.
The adjustment for 2026 will be calculated based on the September Consumer Price Index (CPI), which is set to be released on October 24 at 8:30 a.m. The COLA is determined from the percentage increase in the CPI for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter of the year, covering July, August, and September. This figure is then compared to the CPI-W for the same time frame in the previous year to determine the new COLA.
Recent projections from the nonpartisan Senior Citizens League suggest a COLA increase of approximately 2.7%. If accurate, this adjustment would raise the average monthly benefit for retired workers by $54, increasing it from $2,008 to $2,062. While this proposed 2.7% adjustment surpasses the 2.5% increase for 2025, it falls short of the 3.2% COLA seen in 2024.
A look back at COLA history over the last decade reveals fluctuating adjustments:
- 2015: 0.0%
- 2016: 0.3%
- 2017: 2.0%
- 2018: 2.8%
- 2019: 1.6%
- 2020: 1.3%
- 2021: 5.9%
- 2022: 8.7%
- 2023: 3.2%
- 2024: 2.5%
The average COLA over the past 20 years has been approximately 2.6%, serving as a critical adjustment for millions of beneficiaries who depend on Social Security to navigate the rising costs of living. As the date approaches, many recipients are keeping a close eye on the developments that will determine their financial outlook for the upcoming year.
