2026 Social Security COLA Forecast: Benefit Increase for Retirees Aged 62-80
Social Security beneficiaries can expect an increase of 2.7% for the year 2026. The Social Security Administration (SSA) is set to officially announce this cost-of-living adjustment (COLA) on October 15, contingent on the end of the current government shutdown. Two out of three required data points to determine this adjustment are already available, providing clarity on future benefits.
2026 Social Security COLA Forecast
The anticipated 2.7% adjustment follows a long tradition of annual COLAs aimed at protecting the purchasing power of Social Security benefits from inflation. This adjustment is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which monitors the price changes of over 200 goods and services pertinent to wage earners. The percentage increase in CPI-W during the third quarter (July to September) of the current year is utilized to determine the COLA for the next year.
Understanding the COLA Calculation
For instance, in the third quarter of 2024, the CPI-W increased by 2.5%, leading to a 2.5% COLA for 2025. Currently, the most reliable prediction indicates that benefits will rise by 2.7% for 2026, as corroborated by sources such as The Senior Citizens League and the Social Security Board of Trustees. Following the official announcement, the SSA will mail COLA notices in December. These documents provide beneficiaries with crucial details regarding their updated benefits, including any deductions for Medicare premiums and federal taxes. Additionally, beneficiaries can view their COLA details via the my Social Security portal.
Projected Changes to Retirement Benefits
The average Social Security benefit for retired workers stood at $2,005 as of June 2025. With the projected 2.7% COLA, this figure would rise to approximately $2,059, translating to an additional $54 per month. However, the variation in benefits is significant across different age groups.
Average Monthly Benefits by Age
| Retired Worker’s Age | Average Benefit Before COLA | Average Benefit After COLA | Additional Monthly Income |
|---|---|---|---|
| 62 | $1,377 | $1,414 | $37 |
| 63 | $1,392 | $1,430 | $38 |
| 64 | $1,447 | $1,486 | $39 |
| 65 | $1,613 | $1,657 | $44 |
| 66 | $1,809 | $1,858 | $49 |
| 67 | $1,963 | $2,016 | $53 |
| 68 | $2,004 | $2,058 | $54 |
| 69 | $2,052 | $2,107 | $55 |
| 70 | $2,188 | $2,247 | $59 |
| 71 | $2,157 | $2,215 | $58 |
| 72 | $2,139 | $2,197 | $58 |
| 73 | $2,125 | $2,182 | $57 |
| 74 | $2,093 | $2,150 | $57 |
| 75 | $2,085 | $2,141 | $56 |
| 76 | $2,098 | $2,155 | $57 |
| 77 | $2,082 | $2,138 | $56 |
| 78 | $2,089 | $2,145 | $56 |
| 79 | $2,057 | $2,113 | $56 |
| 80 | $2,038 | $2,093 | $55 |
Trends in Social Security Benefits
Notable trends emerge from the data. As retirees progress from ages 62 to 70, the average benefit tends to rise, primarily due to enhancements tied to delayed claims. Conversely, benefits typically decrease after age 70, reflecting the wage history of beneficiaries. Younger retirees usually come from careers with higher lifetime earnings, resulting in elevated Social Security benefits.
The forthcoming COLA adjustment signifies an important development for retirees, helping to alleviate the pressures of inflation and enhance their monthly income.
