Social Security Cost-of-Living Adjustment Expected to Rise Above 2.5% for 2026

The Social Security Cost of Living Adjustment (COLA) for 2026 is projected to be slightly higher than the 2.5% increase implemented in 2025, with estimates around 2.7%, raising the average monthly benefit to about $2,062. However, experts caution that even this modest COLA increase may not fully offset rising expenses, especially with Medicare premiums also expected to increase, potentially negating the benefit gains for many seniors. The COLA is determined by comparing the Consumer Price Index for Urban Wage Earners (CPI-W) in the third quarter of the current year with that of the previous year, though advocates suggest this measure may not accurately reflect seniors' actual cost increases. Additionally, the Social Security Administration announced the October 2025 payment schedule, which continues the established pattern without major disruptions, ensuring timely benefit distribution. President Donald Trump has mandated a significant change to Social Security payments by eliminating paper checks by September 30, 2025, transitioning all beneficiaries to electronic payments to reduce fraud and save costs. These developments reflect ongoing adjustments aimed at modernizing the program while addressing inflationary pressures impacting beneficiaries.