The Social Security cost-of-living adjustment for 2026 will be a 2.6% increase in benefits, 0.1 percentage points higher than anticipated last month, The Senior Citizens League predicted Tuesday.
The Consumer Price Index for All Urban Consumers increased 0.3% on a seasonally adjusted basis in June, after rising 0.1% in May, the U.S. Bureau of Labor Statistics reported Tuesday. Over the past 12 months, the all-items index increased 2.7% before seasonal adjustment.
The 2026 COLA won’t be known until October, when the Social Security Administration will use the average rate of inflation during the third quarter to measure how prices have changed from the third quarter of 2024.
The adjustment, projected to be slightly higher than the 2.5% increase enjoyed by beneficiaries this year, is down significantly from recent years. High inflation during the COVID-19 pandemic led to COLAs of 5.9% in 2022 and 8.7% in 2023. In 2021, seniors received a 1.3% benefit boost.
The new COLA prediction is particularly notable, according to TSCL Executive Director Shannon Benton, coming shortly after the passage of the Republican-backed tax legislation. The law included a new $6,000 tax deduction for many taxpayers older than 65.
“The Big Beautiful Bill is a good start on providing financial relief for American seniors,” Benton said. “The next priority should be providing support for the estimated 7.3 million American seniors who are living on less than $1,000 per month, which is below the federal poverty line.”
June Inflation Highlights
The index for shelter rose 0.2% in June and was the primary factor in the all-items monthly increase. The energy index rose 0.9% during the month, driven by a 1% increase in the gasoline index.
The index for food increased 0.3% in June, with the index for food at home rising 0.3% and the index for food away from home rising 0.4%. The index for all items less food and energy rose 0.2% in June, following a 0.1% increase in May.
Indexes that increased over the month include household furnishings and operations, medical care, recreation, apparel and personal care. The indexes for used cars and trucks, new vehicles, and airline fares were among the major indexes that decreased in June.
Credit: David Palmer/ALM
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.