Stock Market Today: Social Security Announces 2026 Cost-of-Living Adjustment (COLA) of 2.8% After Shutdown Delay

Social Security beneficiaries will receive a 2.8% increase in their monthly payments in 2026, the agency announced today, after the long-awaited cost-of-living adjustment was delayed by the federal government shutdown. The annual Cost-of-Living Adjustment (COLA) is designed to help Social Security recipients keep pace with inflation by adjusting payments to reflect changes in consumer prices.

The calculation is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics (BLS). The Social Security Administration compares the average CPI-W readings from July through September to the same period a year earlier, with the percentage change determining the next year's adjustment.

This year's announcement, originally scheduled for October 15, was pushed back after the shutdown temporarily halted the release of September inflation data. The 2.8% increase marks a modest boost, slightly higher than last year's, driven in part by ongoing price pressures tied to tariffs and rising costs for essentials like groceries and housing.

For the average retiree, the adjustment will add roughly $56 per month to Social Security payments beginning in January 2026, offering a small cushion against persistent inflation.

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