Millions of older adults may find themselves waiting longer to learn how much their Social Security payments will increase next year.
The Social Security Administration (SSA) is set to announce the 2026 cost-of-living adjustment (COLA) on October 15, coinciding with the Bureau of Labor Statistics (BLS) when it was supposed to disclose September’s inflation figures.
However, due to a majority of BLS staff being furloughed during the government shutdown, economic reports, including the inflation data, may face delays, as reported by USA Today.
The SSA is unable to compute the annual COLA without the necessary inflation report, according to USA Today.
Despite potential delays in the COLA announcement, Social Security payments will proceed as planned since their funding remains independent of Congress’s annual budget cycle, per USA Today.
Mary Johnson, an independent analyst specializing in Social Security and Medicare policy, stated, “While a government shutdown could delay the announcement of the COLA, it’s important to note that the data for September has already been collected.”
Historically, the only delay in a COLA announcement occurred in October 2013, as noted by USA Today.
Recently, the Senior Citizens League (TSCL) projected that the Social Security COLA might be set at 2.7% when it is announced in mid-October.
This adjustment could potentially increase the average monthly benefit for retired individuals by $54, lifting it from $2,008 to $2,062.
The COLA is applied to Social Security payments to help offset inflation, ensuring that beneficiaries maintain their purchasing power amidst rising prices.
The COLA for 2025 was measured at 2.5% and was implemented at the beginning of the year.
The Social Security Administration has yet to respond to FOX Business’s inquiry for comments.
