Close Menu
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
What's Hot

Fed’s dot plot shows one rate cut for next year

December 16, 2025

Report: Global nonbank sector surged in 2024

December 16, 2025

SpaceX may be the biggest IPO ever next year. How to play it right now

December 16, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram
Smart SpendingSmart Spending
Subscribe
  • Home
  • Finance News
  • Personal Finance
  • Investing
  • Cards
    • Credit Cards
    • Debit
  • Insurance
  • Loans
  • Mortgage
  • More
    • Save Money
    • Banking
    • Taxes
    • Crime
Smart SpendingSmart Spending
Home»Finance News»Social Security cost-of-living adjustment may be 2.5% in 2026: estimates
Finance News

Social Security cost-of-living adjustment may be 2.5% in 2026: estimates

June 11, 2025No Comments3 Mins Read
Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
Social Security cost-of-living adjustment may be 2.5% in 2026: estimates
Share
Facebook Twitter LinkedIn Pinterest Email

Sdi Productions | E+ | Getty Images

Millions of Social Security beneficiaries received a 2.5% boost to their benefits in 2025, thanks to an annual cost-of-living adjustment that went into effect in January.

In 2026, Social Security checks may go up by the same amount — 2.5% — based on the latest government inflation data, according to new estimates from both The Senior Citizens League and Mary Johnson, an independent Social Security and Medicare policy analyst.

That is up from the 2.4% increase for 2026 that those sources forecast last month. A 2.5% cost-of-living adjustment would be “about average,” according to Johnson.

The Social Security cost-of-living adjustment, or COLA, is an annual change to benefits aimed at helping to ensure monthly checks keep pace with inflation.

The COLA for the following year is calculated based on third-quarter inflation data. The official change is typically announced by the Social Security Administration in October.

With four more months of data yet to come before that calculation, the new estimate for the Social Security COLA for 2026 is subject to change.

The COLA may move higher if President Donald Trump’s tariff policies prompt inflation and consumer prices to increase, according to Johnson.

Broadly, the consumer price index rose less than had been expected in May, with an annual inflation rate of 2.4%, showing limited impact from Trump’s tariff policies.

The measure used to calculate the Social Security COLA — the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W — is up 2.2% over the past 12 months, according to the May data.

See also  Affirm beats analysts estimates on revenue and earnings | PaymentsSource

While that inflation rate is lower than the 2.5% COLA for 2025, a Senior Citizens League survey finds 80% of seniors feel inflation in 2024 was more than 3% based on their expenses.

As the Trump administration has reduced the size of the federal workforce, that has also led to changes in the way the Bureau of Labor Statistics assesses inflation. The government agency has restricted data collection and turned to models that help fill in incomplete data.

More from Personal Finance:
Here’s the inflation breakdown for May 2025
What’s happening with unemployed Americans — in five charts
How investors have performed amid Trump market volatility

The Senior Citizens League has raised concerns that those changes may negatively influence the accuracy of the annual Social Security COLA calculations.

“Inaccurate or unreliable data in the CPI dramatically increases the likelihood that seniors receive a COLA that’s lower than actual inflation, which can cost seniors thousands of dollars over the course of their retirement,” Shannon Benton, executive director at The Senior Citizens League, said in a statement.

The Bureau of Labor Statistics did not immediately respond to CNBC’s request for comment.

Don’t miss these insights from CNBC PRO

Source link

adjustment costofliving estimates Security Social
Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
Previous ArticleSenate stablecoin bill passes a key procedural vote
Next Article The GOP Wants To Stop A Major Accounting Regulatory Body

Related Posts

Fed’s dot plot shows one rate cut for next year

December 16, 2025

SpaceX may be the biggest IPO ever next year. How to play it right now

December 16, 2025

Hassett’s Fed candidacy got pushback from top Trump allies: Sources

December 16, 2025
Add A Comment
Leave A Reply Cancel Reply

Top Posts

How a Social Security Increase Could Raise Your Tax Bill

February 4, 2025

What is a business line of credit and how does it work?

February 24, 2025

25 Tips for Keeping More Money

March 28, 2025
Ads Banner

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

Stay informed with our finance blog! Get expert insights, money management tips, investment strategies, and the latest financial news to help you make smart financial decisions.

We're social. Connect with us:

Facebook X (Twitter) Instagram YouTube
Top Insights

Fed’s dot plot shows one rate cut for next year

December 16, 2025

Report: Global nonbank sector surged in 2024

December 16, 2025

SpaceX may be the biggest IPO ever next year. How to play it right now

December 16, 2025
Get Informed

Subscribe to Updates

Subscribe to Get the Latest Financial Tips and Insights Delivered to Your Inbox!

© 2025 Smartspending.ai - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.