As October nears, several anticipations are developing for Social Security beneficiaries, as each passing days take us a step closer to the annual COLA announcements. The COLA is an annual increase that applies to your benefit amounts that rely on inflation. To determine the accurate figures, according to which the increment will be made in benefits amounts, the agency measures third-quarter inflation data year over year.
Why Seniors Say the Formula Fails Them?
The announcement of COLA is made each year in October once the third-quarter inflation data are declared by the Bureau of Labor Statistics. For 2025, there is a 2.5% COLA, and as a result, the benefits were raised accordingly in January. Prior estimation reflecting that the 2026 COLA will also be 2.5%. However, these estimations have since increased reliance on the latest measures.
While an increase to your benefits check is also a part of the theory, a new study done by The Senior Citizens League (TSCL), a nonpartisan elderly advocacy group, found that most seniors are frustrated with their monthly benefits, and almost all the applicants felt that the estimated COLA figures does not matching accurately with the effects of inflation they are experiencing.
COLA October Announcement – Overview
| Article On | Why Seniors Say the Formula Fails Them? COLA vs. Reality – Watch Before the October Announcement |
| Country | United States |
| Department | Social Security Administration (SSA) |
| Program Name | All Social Security Benefits |
| Affected Individuals | Social Security recipients |
| Amount | As per the eligibility |
| 2025 COLA | 2.5% |
| Estimated COLA for 2026 | 2.7% |
| Payment Frequency | Monthly |
| Category | Finance |
| Official Website | ssa.gov |
How is the COLA determined?
The average CPI-W readings are reviewed every year by the SSA from July, August, and September and compared with those of the same period a year earlier. The benefits will get an adjustment to match if the price has gone up, and if there is no change in the CPI-W year over year, or if it decreases, then the COLA is announced at 0%.
In 2026, the Social Security recipients will see a 2.7% adjustment (COLA) according to the most recent projection from The Senior Citizens League, with an increase of 0.1% points from the estimation of July.
The data for July is substantial, as it shows the primary month used in the formal COLA formula. On the basis of which the SSA adjusts, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). According to the policy analyst, Mary Johnson, the CPI-U and CPI-W are weighed differently. By pointing out the medical care, groceries categories, and transportation, Johnson stated that the prices on the items that the senior Americans use the most stay risen and has also placed the 2026 COLA forecast at 2.7%.
Seniors are feeling frustrated with their Social Security benefits
Recently, a survey was conducted by TSCL of around 2,000 seniors who reached the age of 62 or above and were eligible to receive Social Security benefits. According to the results, there are 94% of seniors felt that the 2025 COLA, which is 2.5% was too low to account for inflation and their benefits increase more slowly than the rising rate of inflation.
- CPI-W is used to determine the cost-of-living adjustments. Many adult beneficiaries feel that CPI-W is not an accurate measure of cost relative to inflation. TSCL states in their reports that about 68% seniors have favored a particular option to compute the COLA rate by using an inflation index, as it shows the financial situations of recipients more accurately. The government currently uses the CPI for Urban Wage Earner to calculate COLA; however, TSCL supports using the Consumer Price Index for seniors in the U.S.
- This concern is especially associated with the estimated increase in the Medicare Part B premium in the following year. According to the 2025 reports of the Medicare Trustees, the Medicare Part B premiums are projected to rise by about 11.6%. This may result in many seniors not feeling the rise in COLA next year, or maybe they see a smaller amount check this year due to the Part B rise.
- In the recent survey, the executive director of TSCL stated that the data in the study reflects exactly what seniors have been stating for years, that Social Security checks are not keeping up enough with inflation. Many seniors felt that inflation is much higher than stated in the government reports of 2024. So it is time to stop asking explanations about their experiences and start questioning COLA’s fall.
What can Beneficiaries do to prepare?
The following points are considered by the retirees to make the most of the benefits of the COLA 2026-
- Wait to apply your benefits until you reach age 70 (Delayed Retirement Age), which will result in to rise in benefits.
- By accessing the “My Social Security” account at SSA. gov, and for personalized benefit details, the COLA 2025 needs to be checked.
- The increasing cost of housing or food, and the Medicare premium, make a proper budget. It is important to have a budget plan as 80% of the retirees have to face the increasing inflation.
Final Thoughts
At 2.7% the increasing COLA 2026 is estimated. This provides a significant hike in the assistance of the Social Security, which helps them to fulfill the daily expenses. As compared to the present projection from the reliable sources, the estimated figure of 2.7% appears to be most significant. The accurate official announcement of the 2026 COLA increase will be provided by the SSA. So, it is important to plan a budget wisely, stay informed, and explore other income options for a livelihood.
Frequently Asked Questions
When will the announcement of COLA 2026 take place?
The announcement of COLA 2026 will take place in October 2025.
Why do seniors say the COLA formula fails them?
Seniors say the formula fails because it uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
How do rising Medicare premiums affect the COLA?
Rising Medicare Part B premiums will automatically be deducted from Social Security checks. These increases often consume a large portion of the COLA increase, leaving retirees with little or no net increase in their monthly checks.
