Social Security's 2025 COLA Confirmed at 2.5%, 2026 Delayed by Shutdown
The Social Security Administration's Cost-of-Living Adjustment (COLA) for 2025 is confirmed at 2.5%. This increase, effective from the start of the year, helps beneficiaries keep pace with inflation. However, the ongoing government shutdown may delay the announcement for the 2026 COLA, which was initially scheduled for mid-October.
The Senior Citizens League estimated in September that the 2026 COLA could be 2.7%. This would increase the average monthly benefit for retired workers by $54. Despite the potential delay, Social Security recipients will continue to receive their payments during the shutdown.
The Social Security Administration determines the COLA based on the average annual increase in the consumer price index for urban wage earners and clerical workers from July through September. The announcement of the COLA provides beneficiaries with an indication of their potential benefit increase in 2026.
While the 2025 COLA is set at 2.5%, the 2026 COLA estimate stands at 2.7%. Although the government shutdown may cause a delay in the announcement, Social Security payments will continue. Beneficiaries eagerly await the official COLA announcement for 2026, which will give them a clearer picture of their future benefits.
