According to current estimates, the Cost of Living Adjustment (COLA) for Social Security payments will be 2.8% for next year. This means the amount that people will receive from Social Security will go up by that amount in 2026. This calculation is based on inflation data released by the government, and would affect both retirement benefits for seniors, as well as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) payments.
What is the COLA?
The Cost of Living Adjustment, or COLA, is a calculation of how much payments should go up in order to accommodate changes in the cost of living. Each year, rather than needing to pass an increase in Social Security payments, the amount that gets paid out is automatically scaled to the COLA. This, in theory, means that Social Security payments (including SSDI and SSI payments) will keep pace with increases in the cost of living.
How is the COLA Calculated?
The COLA is based off of something known as the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W for short. This is a measurement of the cost of a basket of goods and services that average people rely upon to sustain themselves, including things like the cost of food and housing. As the CPI-W goes up, the COLA increases to match.
Why Does This Matter?
The COLA is crucial because it helps seniors, the disabled, and other recipients of Social Security benefits to know they will always receive the money they need, and that it will keep pace with increasing costs. Without the COLA, Congress would need to pass increases in Social Security every year, putting payments at risk of being affected by the politics of the moment. Thankfully, that is not an issue, and Social Security beneficiaries can rely on their payments scaling up every year as things become more expensive.
How Could it Affect You?
If you are a current Social Security beneficiary, such as from SSDI or SSI benefits, then you will see the increase to your monthly payments after the new year. If you are looking to apply for SSDI or SSI benefits, you will be able to see the increases if you are approved. If you have been denied benefits, you should speak to a lawyer with experience handling disability claims, who can help you explore your legal options.
If you or a loved one need assistance applying for SSDI or SSI benefits, it is important that you seek the guidance of an experienced Social Security Disability benefits lawyer. The lawyers at Sullivan & Kehoe, LLP have over 50 years of combined experience between its attorneys and are available to you or your loved one in obtaining Social Security Disability or Supplemental Security Income benefits. To schedule a consultation with our New York Social Security Disability benefits lawyers, call (631) 823-7155.
