The Social Security Administration is set to reveal the 2026 cost-of-living adjustment (COLA) on October 15, assuming the government shutdown has concluded. Currently, two out of the three data points required to calculate the COLA are available, so we already have a fairly accurate idea of how much benefits will rise next year.
Keep reading to discover the extra income retirees can anticipate from Social Security.
Image source: The Motley Fool
Social Security payments are expected to go up by 2.7% in 2026
Since 1975, Social Security payments have been adjusted each year to keep up with inflation, using cost-of-living adjustments (COLAs) based on the CPI-W, a specific segment of the Consumer Price Index. The CPI-W monitors price changes for over 200 goods and services, weighted according to their significance for hourly wage earners.
The calculation is simple: The percentage rise in the CPI-W during the third quarter (July through September) of the current year becomes the COLA for the following year. For instance, when the CPI-W climbed by 2.5% in the third quarter of 2024, Social Security recipients received a 2.5% COLA in 2025.
The Social Security Administration (SSA) still needs September’s inflation numbers to finalize the 2026 COLA, but both The Senior Citizens League and the Social Security Board of Trustees project a 2.7% increase. The SSA will publish an official announcement with the final COLA figure on October 15, provided the government shutdown is over by then.
The SSA will also mail out COLA notifications in December. These one-page letters specify the exact dates and dollar amounts for your updated benefit, including any deductions for Medicare premiums and federal tax withholdings. You can also access your COLA notice online through the my Social Security portal.
How the typical retired worker’s benefit will shift after the 2026 COLA
In June 2025, the average monthly Social Security payment for retired workers was $2,005. With a 2.7% COLA, that amount would rise to $2,059, so the average retiree would receive $54 more each month in the coming year. However, benefit amounts differ significantly by age, so the dollar increase from the COLA will also vary.
The table below displays the average monthly Social Security benefit for retirees aged 62 to 80 as of June 2025. It also illustrates how these payments would change with a 2.7% COLA, and the extra monthly income each age group would receive on average.
Retired Worker's Age
Average Social Security Benefit Before COLA
Average Social Security Benefit After COLA
Additional Monthly Income
| 62 |
$1,377 |
$1,414 |
$37 |
| 63 |
$1,392 |
$1,430 |
$38 |
| 64 |
$1,447 |
$1,486 |
$39 |
| 65 |
$1,613 |
$1,657 |
$44 |
| 66 |
$1,809 |
$1,858 |
$49 |
| 67 |
$1,963 |
$2,016 |
$53 |
| 68 |
$2,004 |
$2,058 |
$54 |
| 69 |
$2,052 |
$2,107 |
$55 |
| 70 |
$2,188 |
$2,247 |
$59 |
| 71 |
$2,157 |
$2,215 |
$58 |
| 72 |
$2,139 |
$2,197 |
$58 |
| 73 |
$2,125 |
$2,182 |
$57 |
| 74 |
$2,093 |
$2,150 |
$57 |
| 75 |
$2,085 |
$2,141 |
$56 |
| 76 |
$2,098 |
$2,155 |
$57 |
| 77 |
$2,082 |
$2,138 |
$56 |
| 78 |
$2,089 |
$2,145 |
$56 |
| 79 |
$2,057 |
$2,113 |
$56 |
| 80 |
$2,038 |
$2,093 |
$55 |
Data source: The Social Security Administration.
The chart above highlights two important patterns. First, the average benefit for retired workers generally rises from age 62 to 70, mainly because of differences in when people claim benefits. While Social Security can be claimed starting at 62, waiting until 70 results in the highest possible payment.
Second, after age 70, the average benefit begins to decline. This is because Social Security payments are calculated based on lifetime earnings, and wages have tended to grow over time. As a result, younger retirees often had higher earnings during their careers, which leads to larger Social Security checks.
