Government shutdown delays Social Security cost of living announcement. Here’s what you need to know.
The Social Security Administration’s annual announcement setting next year’s cost of living adjustment, or COLA, will be delayed due to the government shutdownthe agency said.
Each year, the Social Security Administration adjusts benefits for its 75 million beneficiaries based on recent inflation data, ensuring that seniors, disabled Americans and other beneficiaries do not lose purchasing power as prices rise.
Social Security had planned to announce the new COLA on Oct. 15, the same day the Labor Department was scheduled to release September Consumer Price Index data, a key measure of inflation. The COLA is determined by inflation figures for the third quarter, which runs from July to September.
With much of the government’s economic data on hold until Congress approves federal funding, the Bureau of Labor Statistics now plans to release its latest CPI numbers on Oct. 24, about nine days later than expected. The Social Security Administration told CBS News it plans to release its COLA announcement the same day.
“The Bureau of Labor Statistics announced that it will release the September 2025 Consumer Price Index on October 24,” the Social Security Administration said in an October 14 email. “The Social Security Administration will use this release to also generate and announce the 2026 cost of living adjustment on October 24.”
The new COLA will take effect on January 1, 2026, without any delays due to the ongoing shutdown, the agency added.
How big of a life adjustment?
According to an estimate released last month by the Senior League, the annual COLA for 2026 could be around 2.7%, slightly higher than the 2.5% increase beneficiaries received in 2025.
The League, an advocacy group for older Americans, based its most recent projection on August inflation data from the Bureau of Labor Statistics. Since the SSA will also include September inflation data in its COLA rate, this figure could change when it is announced later this month.
AARP, another senior advocacy group, expects the 2026 COLA to be between 2.6% and 2.9%. A 2.7% increase in benefits would increase retired workers’ average monthly payment by $54, from $2,008 to $2,062.
Where is inflation currently?
The September CPI is expected to reach an annual rate of 3.1%, up from 2.9% in Augustaccording to economists surveyed by FactSet.
Economists say inflation is rising slightly, in part because of the impact of tariffs imposed by the Trump administration, which hit imports around the world, such as clothing, food, steel and toys. While some companies stockpiled imported goods earlier this year to avoid rising prices, others are now. pass import taxes to their customers.
“Pressures on core goods have begun to intensify, marking the start of a delayed pass-through of tariffs,” RBC economists Michael Reid and Carrie Freestone said in an Oct. 14 report. “Worryingly, the scale of inflationary pressures has widened: 45% of items in the CPI basket now report price growth at or above 3%, compared to around two-thirds before the pandemic.”
Some retirees could face financial hardship if prices continue to rise and the 2026 Social Security adjustment fails to keep pace with inflation. The Federal Reserve projects that the personal consumption expenditures price index, its preferred measure of inflation, will rise to 3.1% this year before falling to 2.6% in 2026.
