Social Security Administration Predicts 2.7% Adjustment Based on Consumer Price Index Data

Thursday, 11 September 2025, 17:08

Social Security Administration anticipates a 2.7% cost-of-living adjustment in 2026 due to rising Consumer Price Index figures. This increase reflects inflation trends affecting benefits. Retired workers may benefit, with average payments rising significantly. The adjustment is based on monthly inflation data.

Cbsnews — Social Security Administration Predicts 2.7% Adjustment Based on Consumer Price Index Data

Projected Social Security Adjustment

The Social Security Administration is currently estimating a 2.7% cost-of-living adjustment (COLA) for 2026. This projection indicates a rise attributed to the latest Consumer Price Index (CPI) data, particularly for August reported by the Bureau of Labor Statistics. In 2025, beneficiaries experienced a 2.5% COLA, and a projected increase could help support retired workers amid inflation.

Impact on Monthly Benefits

Based on the Senior Citizens League's analysis, a 2.7% adjustment would elevate the average monthly benefit from $2,008 to $2,062.

CPI Trends Affecting Adjustments

The CPI-W increased 2.8% year-over-year in August, compared to 2.5% previously.
The SSA’s annual adjustment is determined using inflation data from July, August, and September.

These projected changes reflect ongoing trends in inflation that widely affect the economic landscape.

Upcoming Announcements and Effectiveness

The Social Security Administration is set to disclose the finalized adjustment in October. Should these estimates hold true, beneficiaries will see their new benefits reflected starting January 2026.

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.