Social Security Administration Projects 2.7% Cost-of-Living Adjustment for 2026

Thursday, 14 August 2025, 14:41

Social Security beneficiaries could see a 2.7% cost-of-living adjustment next year. The Social Security Administration's annual adjustment will ensure that benefits keep pace with inflation. Experts have differing predictions, but inflation could rise, impacting future adjustments.

Cbsnews — Social Security Administration Projects 2.7% Cost-of-Living Adjustment for 2026

Projected Cost-of-Living Adjustment for Social Security in 2026

Social Security beneficiaries might experience a 2.7% cost-of-living adjustment (COLA) next year. According to the Senior Citizens League, this estimate follows the release of recent inflation figures by the Bureau of Labor Statistics.

Insights from Experts

AARP also provided insights, presenting estimates from experts like Mike Lynch from Hartford Funds, who suggests a modest adjustment could be more in line with the 2025 COLA. The Social Security Administration adjusts benefits annually to maintain purchasing power for seniors.

Importance of Inflation Data

The inflation data used to determine COLA for the upcoming year is collected in the fall, specifically in July, August, and September.
Current reports indicate that the consumer price index (CPI) has shown an annual inflation rate of 2.7% in July.
Despite stability in inflation, some experts predict that rising tariffs could lead to increased prices for consumers later in the year.

Monitoring Future Adjustments

Alan Detmeister from UBS anticipates the headline CPI may rise to 3.7% and the core CPI to 3.8% by Q2 of 2026. Teresa Ghilarducci, a labor economist, believes a moderate COLA may be at risk due to potential increases in inflation rates.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.