COLA Increase for 2026 Might Be Delayed: What You Need to Know
Millions of Americans rely on COLA, which adds extra money to their benefits to keep up with inflation.
This year, the government shutdown has caused a possible delay in announcing the COLA increase for 2026.
The shutdown paused the release of important economic data, and many government offices stopped working for a while. Because of this, the usual process for calculating COLA was interrupted.
The Consumer Price Index (CPI), which is what COLA is based on, will now be released on October 24, which is later than usual.
Government workers are trying to get the data ready on time, but the tight schedule creates a lot of uncertainty about when the final COLA number will be announced.
What Is COLA?
COLA is an increase applied each year to Social Security and federal pension benefits. The purpose is to make sure your money keeps the same value as prices go up.
COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September of each year.
How Much Could the COLA Be for 2026?
Experts predict that the COLA for 2026 will go up by about 2.6% to 2.8%. This is a slight increase compared to the 2.5% raise given in 2025.
Why Is There a Delay?
The government shutdown stopped the usual release of economic data, especially the CPI report used to calculate COLA.
Although the data will be published on October 24, it’s later than normal, which may delay the final COLA announcement.
Who Is Affected?
A delay in the COLA announcement affects:
- Social Security Recipients: Many people plan their yearly budgets based on how much their benefits will increase. Not knowing the new amount makes it harder to plan.
- Federal Retirees: Retirees depend on COLA to maintain their purchasing power. The Office of Personnel Management (OPM) typically uses the same increase for certain retirement plans, while some get a smaller increase depending on inflation.
- Federal Employees Preparing for Retirement: Some employees may have to put off their retirement plans because they don’t know how much their benefits will grow.
In summary, the announcement for the 2026 COLA increase may arrive later than usual this year because of the government shutdown.
This affects millions of Americans who rely on Social Security and federal pensions to make ends meet.
-
Check out: Which 10 States Getting the Biggest Social Security Raises in 2026?
