Inflation Data on Oct 15 to Set 2026 Social Security COLA
On Wednesday, October 15, the U.S. Bureau of Labor Statistics will release crucial inflation data for September. This report will determine the Social Security cost-of-living adjustment (COLA) for 2026, directly impacting retired workers' incomes.
The COLA is calculated based on the year-over-year percentage increase in the average third-quarter Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) reading. Experts forecast a 2.7% or 2.8% COLA for 2026, which would increase monthly income by approximately $54 to $56 for retired workers.
The COLA is designed to offset the effects of inflation on Social Security income. However, Medicare Part B premiums are forecast to increase by 11.5% in 2026, potentially offsetting or exceeding the COLA for dual enrollees. This trend of Medicare premiums rising faster than Social Security COLAs has been consistent since 2002.
Social Security beneficiaries will learn their precise monthly payout for 2026 on October 15. The upcoming inflation data will shed light on the COLA and its impact on retired workers' incomes, as well as the potential offset from rising Medicare Part B premiums.
