Oct. 24 Could Be a Huge Day for Social Security. Here's Why.

October 15 was a pretty important day for seniors this year. That's because it was the day Medicare's fall open enrollment period kicked off.

But Medicare wasn't supposed to hog the spotlight that day originally. Oct. 15 was also the day when the Social Security Administration (SSA) was expected to unveil an official cost-of-living adjustment (COLA) for 2026.

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For months, there's been speculation about what next year's COLA will amount to. And at this point, seniors on Social Security are itching to know what boost to expect.

But the SSA did not make its COLA announcement on Oct. 15 for one big reason -- it couldn't.

Why the COLA announcement got delayed

When the government shut down in early October, a lot of agencies were unable to do their usual jobs. One such agency was the Bureau of Labor Statistics, which is tasked with compiling data for the Consumer Price Index (CPI).

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a subset of the CPI, is the specific index used to calculated Social Security COLAs. And those COLAs are based on changes to the CPI-W during the months of July, August, and September.

Because of the shutdown, the BLS was not able to produce a CPI reading for September, which is the last piece of the puzzle needed to figure out 2026's COLA. But the agency has also said that it expects to have that data ready on Oct. 24, at which point the SSA should be in a position to announce a COLA shortly thereafter.

What this means is that seniors on Social Security may not have to wait much longer to get that important news. But it's also important to recognize that no matter what 2026's COLA amounts to, it may not be enough.

The problem with Social Security COLAs

If you're a retiree on Social Security, you may be frustrated that the 2026 COLA announcement was delayed. But the reality is that no matter what COLA you get in the new year, it's unlikely to improve your financial situation.

Social Security COLAs are designed to help retirees keep pace with inflation. However, they're not designed to beat inflation.

If Social Security recipients end up with a larger COLA than expected in 2026, it will only mean one thing -- that living costs climbed more so than anticipated in September. And if living costs continue to climb after September, Social Security recipients could end up in a position where they lose out on buying power because their benefits fail to keep up.

Another way to think about it is this:

• Generous COLA = higher levels of inflation
• Stingy COLA = lower levels of inflation

There's really no way for Social Security beneficiaries to win.

Of course, a big part of the problem is that the CPI-W, by nature, is not an index that's reflective of the costs retirees face specifically. Changes to the way COLAs are calculated could help them become more effective in the future. But for now, they can only do so much.

So if you're sitting around anxiously anticipating a COLA announcement, you should know that it's not a great use of your time. A better bet? Come up with a plan to improve your financial situation that has nothing to do with the Social Security COLA you get.

Big changes may be needed

If you're in a position where you're counting on a generous Social Security COLA to keep up with your bills, then you're not in a great spot. So rather than just hope for a larger COLA, take control of your finances.

First, review your expenses. Are there any you can reduce? Small spending cuts could put more money in your pocket than what your upcoming Social Security raise amounts to.

Next, see if it might make sense to relocate to a part of the country where living costs are cheaper. This option won't work for everyone. And it may not be right for you if it means moving far from family and your support network. But it's worth looking into.

Additionally, take the time to review your plan choices during Medicare's open enrollment period. If you're able to find a Part D or Medicare Advantage plan with lower costs, it could help your money go further.

Finally, don't underestimate the power of working a few hours a week. Thanks to the gig economy, part-time work can be as flexible as you need it to.

If all goes according to plan, Oct. 24 should be the day an official 2026 COLA announcement comes out. But don't assume that a Social Security COLA will be the answer to your financial woes. Instead, take steps to improve your situation so that you're in a more comfortable position not just in 2026, but in the long run.

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