The projection for Social Security's annual cost-of-living adjustment (COLA) for next year is getting higher, according to a new report.
The Senior Citizens League on Tuesday released an update that showed its model now forecasts the 2026 COLA will be 2.7% as of July – an increase from its previous estimates of 2.5% in May and 2.6% in June.
The uptick comes as inflation has trended higher in recent months. Social Security's COLA is used to adjust the amounts paid to beneficiaries to account for inflation pushing prices higher, and the COLA for 2025 was 2.5% and took effect at the start of the year.
The Senior Citizens League noted that its estimate may continue to evolve in the next few months ahead of the Social Security Administration's official announcement in October, as more inflation data is incorporated into the model.
The report comes as Social Security is marking its 90th anniversary on Thursday, as the safety program faces mounting financial challenges that are projected to lead to its insolvency in less than a decade barring reforms.