Your dollars will always be worth more because of inflation. The 8.7% Cost of Living Adjustment (COLA) for Social Security benefits in 2022, which will be paid out in 2023, may not happen for a long time after the pandemic. It helped a lot of people and gave them hope that a similar increase or one close to it might happen again, especially because food prices are so high.
People who get Social Security will have to wait until next month to find out how much the final COLA will be for 2026. It is expected to be more than the 2.5% increase they got this year. At this time of year, if you get this benefit, you probably pay close attention to news about it.
It has been reported that the COLA might be 2.7% or 2.8% for 2026. The percentages are based on government inflation data.
According to the Economic Press Release of the U.S. Bureau of Labor Statistics on September 11, 2025, the Consumer Price Index (CPI) for August 2025 “increased 0.4 percent on a seasonally adjusted basis in August, after rising 0.2 percent in July…” (Visit here to read it in full.) “The index for food at home rose 2.7 percent over the 12 months ending in August.”
The CPI data information for September 2025 is scheduled to be released on October 15, 2025, at 8:30 A.M. Eastern Time. This will give a clearer indication of the increase in benefits associated with 2026 payments. Any changes in consumer prices towards the close of September will determine what the final COLA will be.
AARP also reported that inflation went up a bit in August 2025. The Senior Citizens League’s (TSCL) model is predicting the COLA for 2026 will be 2.7%. The COLA for 2025, announced in 2024, was 2.5%, and the COLA for 2024, announced in 2023, was higher at 3.2%.
According to The Motley Fool, “The average Social Security retirement benefit is right around $2,000 per month, so the 2.7% COLA would mean an extra $54 per month for the typical retiree.” However, before you look forward to that whole amount per month, remember it will be offset by whatever your Medicare premium will be, which is expected to rise.
Any Medicare-based premium figure increase for the following year is also usually announced by October. This information may be provided around the same time you receive information about the COLA for 2026.
For the past few years, people have had to budget how much they can spend on groceries because it can be an expensive trip to the store.
According to Retirement Living, we can count on our Medicare Part B premiums going up in 2026, which means once the COLA raise is offset, what’s left won’t quite fill the gas tank in one trip.
Higher premiums could offset much of retirees’ Social Security benefit gains, squeezing fixed incomes. (Source.)
Again, referencing AARP, if the average Social Security recipient is paying $185 for this year’s monthly premium, based on a COLA of 2.7%, the Medicare Part B premium would increase by $21.50 (projected by Medicare trustees). That would boost your monthly premium up to $206.50.
While you can be grateful for a 2.7% predicted COLA increase, or $54.18 (based on what the average Social Security recipient receives), when you deduct the predicted Medicare premium increase of $21.50, you’re only left with $32.68.
I suppose if you’re going to be grateful for anything, you can be grateful the increase covers the increased premium, and still leaves you with enough to spend on a piece of clothing, gas, or groceries in one single trip.
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