Every year, the Social Security Administration, or SSA, examines inflation data and adjusts Social Security benefits accordingly. In short, the annual cost-of-living adjustment, or COLA, is designed to help retirees keep up with the rising cost of goods and services.

When you are on  Social Security, you can expect your retirement benefits to increase during most years. That’s because Cost of Living Adjustments (COLAs) typically happen automatically from year to year.

Social Security’s cost-of-living adjustment is expected to shrink in 2026 and could be the lowest increase seen in a decade.

Social Security beneficiaries have received annual cost-of-living adjustments (COLAs) tied to a subset of the Consumer Price Index known as the CPI-W, which tracks the price of goods and services across the economy.

Social Security beneficiaries have relied on annual cost-of-living adjustments (COLAs) to maintain their purchasing power.

Key Points In 2025, Social Security benefits got a 2.5% cost-of-living adjustment. Initial estimates are calling for a similar COLA in 2026. At this point, it’s premature to nail down a COLA, as it will depend on economic conditions in the next 12