America's retirees will get an extra $56 in their wallets monthly, as Social Security checks adjust to keep up with rising prices.
Social Security's annual cost-of-living adjustment, which is tied to a key inflation measure, will be 2.8% for 2026. That will shake out to an additional $56 a month for nearly 71 million beneficiaries starting in January, according to the Social Security Administration, with Supplemental Security Income recipients getting their beefed-up checks starting at the end of December.
"Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today's economic realities and continue to provide a foundation of security," Frank Bisignano, the Social Security Administration commissioner, said in a release.
The adjustment is based on third-quarter consumer price index data. Inflation continued accelerating in September, reaching 3%. That matches January's rate.
The cost-of-living adjustment skyrocketed to 8.7% in 2022 for 2023, when inflation was much higher than it has been.
The adjustment — and the data it's based on — comes as other federal functions and data remain in a holding pattern. The Bureau of Labor Statistics didn't publish its September jobs report earlier this month because of the ongoing government shutdown, and it has yet to be released. Initially, the inflation data and Social Security adjustment were scheduled to be released on October 15, but were delayed by the shutdown; the Bureau of Labor Statistics reportedly recalled staffers to prepare the inflation report.
"No other releases will be rescheduled or produced until the resumption of regular government services," the Bureau of Labor Statistics said in an October 10 statement. "This release allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits."
While older Americans can take some solace knowing that their payments should proceed on time — and with requisite increases — other social safety net programs are floundering during the shutdown, which could cause ripple effects.
Some states have warned that they'll need to pause distributing Supplemental Nutrition Assistance Program benefits in November, meaning that many low-income Americans may struggle to afford groceries with smaller or nonexistent monthly checks. As of fiscal year 2022, about 7.2 million Americans aged 60 and over participated in SNAP, and, as of fiscal year 2023, that group made up around a fifth of SNAP participants.
All of that could exacerbate some of the financial strains that older Americans are already facing. Around 44% of Americans 65 and older have incomes of $30,000 or less in 2024, per a Business Insider analysis of Census data. That could mean even the 2.8% increase may not be enough for some: An AARP survey of 1,001 American adults ages 50 and up, conducted between September 18 and 23, found that 77% disagreed that a COLA of around 3% would be enough to keep up with rising prices.
Are you a retiree looking forward to the Social Security increase? Have high prices affected you? Reach out to these reporters at jkaplan@bjinnox.com and mhoff@bjinnox.com.
