Social Security recipients may get a 2.7% COLA in 2026, boosting average benefits by $54, pending official confirmation after the shutdown.

Social Security beneficiaries may receive a 2.7% cost-of-living adjustment (COLA) in 2026, potentially increasing the average monthly benefit by about $54, according to forecasts based on third-quarter 2025 inflation data. The official announcement, delayed due to the federal government shutdown beginning October 1, 2025, will be made once data collection resumes, but payments will continue on schedule with no reduction. The adjustment, calculated using the CPI-W index, will apply retroactively starting January 2026. While the COLA aims to offset rising costs, higher Medicare premiums and taxes may reduce net gains. The program’s long-term solvency remains a concern, with the trust fund projected to be depleted by 2034 without legislative action.