Because of the federal government shutdown, the data used to set the Social Security Administration’s annual cost-of-living adjustment is not available.
The data, which is part of the monthly Consumer Price Index report, was not released Wednesday as intended. The Social Security Administration bases its cost-of-living adjustment on the Consumer Price Index for Urban Wage Earners and Clerical Workers, which the Bureau of Labor Statistics releases monthly.
The consumer price index weighs the costs of goods based on their importance. Items like food, shelter and energy typically carry heavier weight.
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Last year’s cost-of-living adjustment was 2.5%, which closely matched the 2.4% increase in consumer goods and services. About 74 million Social Security beneficiaries are scheduled to receive a cost-of-living adjustment starting in January. Nearly 7.2 million people receiving Supplemental Security Income will get the adjustment starting Dec. 31.
The Social Security League projects the annual cost-of-living adjustment for 2026 will be 2.7%. For the average Social Security retiree, that would mean a monthly increase of about $54.
For the 12-month period ending in August, the consumer price index showed a 2.9% increase in prices.
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There are long-term concerns over the future of Social Security payments.
The Committee for a Responsible Federal Budget said legislation passed in July will reduce Social Security’s revenue from the income taxation of benefits. The group says this change will cause Social Security to become insolvent sooner than previously expected. A report from Social Security’s trustees states there are enough funds to fully pay benefits until 2034, but without congressional intervention, benefits will be cut. The committee projects Social Security will become insolvent by the end of 2032.
Officials have long expressed concern about the stability of the program. As the Baby Boomer generation ages and birth rates decline, Social Security revenue is falling while its expenses are rising. Social Security paid out $1.5 trillion in benefits in 2024, accounting for about 23% of federal spending.
