The 2026 Social Security cost of living adjustment (COLA) will be announced in October 2025

Social Security benefits increase each year based on inflation, measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration calculates the COLA by comparing the average CPI-W for July, August, and September of the current year to the same three months from the previous year. The percentage increase becomes the COLA that takes effect the following January.

For 2026, the announcement will happen in mid-October 2025. The increase will explore to all Social Security retirement, survivor, and disability benefits starting in January 2026. The exact percentage cannot be known until the inflation data for summer 2025 is finalized, so estimates published before October 2025 are projections only, not confirmed figures.

If inflation is lower in 2025 than it was in 2024, the 2026 COLA will be smaller than the 2025 increase. If inflation rises, the 2026 COLA will be larger. In years when inflation is negative or very low, the COLA can be zero, meaning no increase occurs — though this has happened only three times since 1975.

Key Takeaways

  • The 2026 COLA will be announced in October 2025 and will take effect on January 1, 2026, for all beneficiaries.
  • The increase is based on inflation measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers from July through September 2025.
  • You do not need to do anything to receive the increase — it is applied automatically to your benefit payment.
  • Medicare Part B premiums and other deductibles may also increase based on the COLA, which can offset part of your benefit increase.

How the COLA is calculated and why it matters

The COLA formula compares inflation over a specific three-month window. The Social Security Administration uses the average CPI-W for July, August, and September of the current year and compares it to the same months from the prior year. The percentage difference becomes the COLA percentage applied to all benefits in January of the following year.

This matters because your benefit amount is fixed when you first start receiving it. Without the COLA, the purchasing power of your monthly check would decline each year as prices rise. The COLA is designed to keep your benefit roughly level with inflation, though it does not always match your personal spending patterns — the CPI-W measures costs for urban wage earners and clerical workers, not retirees or disabled workers specifically.

The COLA also affects Supplemental Security Income (SSI) payments and the earnings test threshold, which determines how much you can earn while still receiving benefits if you claim before full retirement age.

What happens to your benefit payment in January 2026

If you are already receiving Social Security benefits, your January 2026 payment will include the COLA increase automatically. You will see the new amount on your benefit statement and in your bank account or payment method. The Social Security Administration sends notices in December showing the new benefit amount and explaining the increase.

If you claim Social Security for the first time in 2026, your initial benefit will be calculated using the 2026 bend points and other factors current at that time. The COLA does not affect how your benefit is calculated — it only adjusts the amount for people already receiving payments.

If you are still working and have not yet claimed, the COLA does not affect you directly. However, if you continue working and earning, your benefit calculation may change when you do claim, because your recent earnings will be included in your record.

How the COLA affects Medicare premiums and other costs

The relationship between the COLA and Medicare Part B premiums is complex. In most years, the Part B premium increase is limited by a rule called "hold harmless," which prevents the premium from rising more than the COLA increase. This means that for many beneficiaries, the benefit increase is partially or fully offset by the premium increase.

However, people who are new to Medicare or who did not pay Medicare taxes while working are not protected by hold harmless and may see larger premium increases. Additionally, the Part B deductible and out-of-pocket maximums for Medicare Advantage and Medigap plans may increase based on the COLA, further reducing the net increase in your take-home benefit.

The Social Security Administration and Centers for Medicare and Medicaid Services typically announce both the COLA and the Medicare premium changes at the same time in October, so you can see the full picture of how your benefits and costs will change.

Comparing 2026 COLA to recent years

The 2025 COLA was 3.2 percent, applied to benefits starting January 2025. In 2024, the COLA was 3.2 percent. In 2023, it was 8.7 percent — the largest increase since 1981, driven by high inflation in 2022. In 2022, the COLA was 5.9 percent. In 2021, it was 1.3 percent.

These variations show that the COLA is not predictable year to year. A large increase one year does not mean the next year will be large. The 2026 COLA will depend entirely on inflation between July and September 2025 compared to the same months in 2024. If inflation moderates from 2024 levels, the 2026 COLA will be smaller than 3.2 percent. If inflation accelerates, it will be larger.

What you should do before the announcement

You do not need to take any action to receive the 2026 COLA. The increase is applied automatically to your account. However, you can prepare by reviewing your current benefit amount on your Social Security statement, which you can access through your my Social Security account at ssa.gov.

If you are still working and considering when to claim, the COLA does not change the decision-making process. Your benefit amount is based on your 35 highest-earning years, your age when you claim, and the bend points in effect when you claim — not on the COLA. The COLA only adjusts benefits for people already receiving them.

If you receive Supplemental Security Income (SSI) in addition to Social Security, the COLA will increase both your SSI payment and the SSI resource limit (the amount of savings you can have and still receive SSI). The resource limit typically increases by the same percentage as the COLA.

Frequently Asked Questions

When will I know the exact 2026 COLA percentage?

The Social Security Administration announces the COLA in mid-October 2025. You will see the announcement on the Social Security website and in news coverage. The increase takes effect January 1, 2026.

Will the 2026 COLA be higher or lower than 2025?

That depends on inflation between July and September 2025 compared to the same months in 2024. No one can predict inflation with certainty, so estimates published before October 2025 are guesses. The actual COLA will be based on final inflation data released by the Bureau of Labor Statistics.

Do I have to do anything to get the COLA increase?

No. If you are receiving Social Security benefits, the increase is applied automatically in January 2026. You will receive a notice in December 2025 showing your new benefit amount.

Will my Medicare premium go up by the same amount as my COLA increase?

Not necessarily. For most beneficiaries, the Part B premium increase is limited by hold harmless rules, but the premium may still rise significantly. The Social Security Administration announces both the COLA and Medicare premiums together in October so you can see the net change to your benefit.

Does the COLA affect my benefit if I claim Social Security for the first time in 2026?

The COLA does not change how your initial benefit is calculated. Your benefit is based on your earnings record, your age when you claim, and the bend points in effect that year. The COLA only adjusts benefits for people already receiving payments.