The 2026 Social Security COLA Will Be Announced Soon. Here's What to Expect
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The Social Security Administration will announce the 2026 cost-of-living adjustment (COLA) as soon as Oct. 15. Benefits will go up next year -- but they may not cover retiree's rising costs.
Here's what we know about the 2026 Social Security COLA so far.
When the 2026 COLA will be announced
The Bureau of Labor Statistics (BLS) is scheduled to report September inflation data on Oct. 15. Social Security COLAs are based on this data, and they're usually announced on the same day as the BLS report.
This year, however, the federal government shutdown could cause a delay. BLS employees have been furloughed, so until the shutdown ends, new inflation data can't be released.
The shutdown will not affect Social Security benefits, however. Payments will be made on time, and Social Security offices remain open.
How big the COLA will be
The Senior Citizens League estimates that the 2026 COLA will be 2.7%. SCL forecasts are usually accurate -- especially this close to the announcement date.
The average Social Security retirement benefit is about $2,000 per month. A 2.7% COLA would increase that by $54.
Why the COLA may seem small
A 2.7% boost would be slightly higher than the 2025 COLA of 2.5%. Still, it may not be enough to cover all of retirees' expenses.
Medicare B premiums are expected to spike by $21.50 per month to $206.50. For the average retiree, that would eat up 40% of their estimated 2026 COLA.
What you should do
Keep an eye on the news
The 2026 COLA may still be announced by Oct. 15, but that depends on when the federal government reopens.
Look for your COLA notice in early December
You'll receive a COLA notice in the message center of your online Social Security account. It'll tell you the exact amount and payment dates of your 2026 benefits.
The Social Security Administration also sends COLA notices by mail, though they'll likely arrive after your online notice.
Make a plan for your 2026 COLA
To maximize your Social Security benefit, figure out how you'll use the COLA now.
Some may go toward expenses, but as for the rest, consider:
- A high-yield savings account. This is the best place for money you may need in the near future. The best high-yield savings accounts pay about 3.50% to 4.20% APY, and they're as safe as any other bank.
- Certificates of deposit. CDs lock your cash up for a fixed period, usually between 3 months and 5 years. During that time, they pay a fixed interest rate. That makes them an excellent way to protect your savings from interest rate cuts -- and more of those are expected soon. The best CDs pay about 3.50% to 4.40% APY.
- Paying off credit card debt. Credit card interest can cost you a lot more than a Medicare premium hike. A balance transfer card might help by giving you several months to pay off existing debt at 0% APR. If you pay off your balance before the 0% intro APR period ends -- and a high APR kicks in -- then you can save a bundle in interest. The best balance transfer cards offer 0% intro APR for as long as 21 months.
Even if all your COLA ends up going toward expenses, it's best to work out your 2026 budget ASAP. Do your best to prepare, and if the COLA announcement is late, don't panic -- your benefits are safe.
Our Research Expert
James McClenathen is a full-time Managing Editor and Personal Finance Writer at Motley Fool Money, overseeing the production and quality of editorial content while also writing about credit cards, investing, and everyday money management. He has worked at The Motley Fool since 2012 and brings extensive experience as an editor, reporter, and finance expert. A graduate of the University of Michigan, James has spent more than a decade of his career helping readers make smarter financial decisions.