Millions of people highly rely on such benefits to look after their daily expenses. The government constantly adjusts the payments according to inflation. We call this adjustment a Cost-of-Living Adjustment (COLA).
There is no official announcement that has been made by SSA about the COLA 2026, so it’s difficult to predict whether the increase is sufficient to offset the cost of living. The Alaskans are eagerly waiting to know about the COLA 2026, and several predictions and estimates have also been made in the analytics. This article includes everything that you need to know about COLA 2026.
2026 COLA Be Enough to Offset Alaska’s High Living Costs: Overview
| Article On | Forecast: Will the 2026 COLA Be Enough to Offset Alaska’s High Living Costs? |
| Department | Social Security Administration |
| Adjustment Name | Cost-of-Living Adjustment (COLA) |
| Announcement date of COLA 2026 | 15 October 2025 |
| Country | U.S. |
| Beneficiaries | As per the eligibility |
| Projected rate | 2.7 percent in 2026 |
| Category | Government Aid |
| Official Website | ssa.gov |
How is the COLA Calculated?
The cost-of-living-adjustment is determined by the rate of inflation in the consumer price index for the clerical and urban wage earners in the last third quarter of every year (July, August, and September). The Consumer Price Index for Clerical Workers and Urban Wage Earners, or CPI-W, is used to compute COLAs.
According to the estimation, the preceding percentage of COLA will not be set till October 2026. For 2026, the present evaluations from the Senior Citizens League recommend a change of 2.7%. This displays a slight increase from the 2025 increase of 2.5%, which indicates a continuous high reflection.
2026 COLA Forecast
The official COLA announcement will be made on 15 October after the September inflation data is released, but a lot of speculations and projections are being made according to the updates from financial experts and analysts who look after the rate of inflation and the government’s data.
Mary Johnson, who is an independent social security and Medicare policy analyst, stated that a raise of up to 2.8% in COLA 2026 would result in a boost to the average retirement benefits up to $54.70 per month.
Furthermore, the Senior Citizens League, an independent advocacy organization, just published a 2026 COLA forecast using the latest CPI-W data. And now it’s predicting a 2.7% Social Security increase for the upcoming year. That 2.7% forecast is above the group’s recent projections. And it’s also the same precise increase in Social Security benefits received at the beginning of the current year.
Impact on Social Security
The rate of COLA directly impacts the Social Security payments. The SSA determines the COLA rate based on the primary amount of the beneficiary, so if the COLA rate increases, then the payout to every individual will be higher. This increase will be difficult for those individuals who are completely dependent on the monthly payments to look after their daily expenses.
When inflation and cost-of-living rises, COLA restores the purchasing power of individuals. Still, many individuals believe that it is not a sufficient amount to look after their expenditures, especially the retirees who look after their monthly payments by themselves.
Impact of Rising Costs
Many Americans might be excited about the COLA increase in 2026, but what is troubling the retirees is the increased cost of Medicare Part B and the rising costs, which are automatically deducted from the Social Security payments.
Higher Medicare Costs
With the rising inflation, the cost of medicine is expected to rise by $21.50, which reflects an increase in cost of up to 11.6% going from $185 to $206.50 in 2026. This change is the largest since 2022, which takes 40% of the COLA rise and leads to a reduction in the benefits of social security.
01. High Living Costs in Alaska: According to the reports, Alaska has a higher cost of living compared to the national average. This report states that the increase in COLA is not enough for Alaska to keep pace with the inflation rate. The cost of living index in Alaska is 124.3, showing 24.3% higher than the national average.
02. Inflationary pressure: The social security benefits rise according to the COLA. There have been discussions in Congress for years about revising the way Social Security’s yearly COLA is calculated. Currently, it’s based on the CPI-W—the Consumer Price Index for Urban Wage Earners and Clerical Workers. That, however, does not accurately show the spending of most retirees in America.
Thus, because of this, few legislators wish to switch to the CPI-E, or Consumer Price Index for the Elderly. It gives higher weights to medical care and other expenses that disproportionately affect older Americans.
Frequently Asked Questions
Will rising Medicare premiums affect COLA benefits?
Yes, Medicare Part B premiums are expected to increase up to 11.6 % which takes 40% of the COLA rise and leads to a reduction in the benefits of Social Security.
When is the COLA announced?
The Social Security Administration will announce the official 2026 COLA on October 15th.
What is the Estimated COLA for 2026?
According to the current state of inflation, the COLA is expected to increase by roughly 2.7%.
What can seniors in Alaska do to manage rising costs?
There are more options available for seniors, like switching to a medicare advantage plan for Medicare costs. They can use other strategies such as budgeting and seeking financial assistance programs.
What can be done to reduce Medicare costs?
To reduce the impact of Medicare costs, you can switch to a Medicare Advantage plan or explore Medicare savings programs that will help you mitigate costs.
