A Huge Social Security Announcement Is Coming in Less Than a Month. Are You Prepared?

Key Points

• On Oct. 15, the Social Security Administration will unveil next year's cost-of-living adjustment (COLA).

• Initial estimates are calling for a 2.7% raise, but that could change.

• If you're worried next year's COLA won't be enough, there are steps you can take now to compensate.

• The $23,760 Social Security bonus most retirees completely overlook ›

If you're someone who works hard at your job and relies on your paycheck to make ends meet, then the weeks leading up to your year-end performance review may be nerve-wracking -- especially if that's when you'll find out whether you're getting a raise in the new year or not.

Similarly, retirees on Social Security are undoubtedly pretty anxious at this point to find out what their upcoming cost-of-living adjustment (COLA) will be.

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Social Security benefits are eligible for an automatic COLA each year. The purpose of COLAs is to help ensure that Social Security recipients are able to maintain their buying power as inflation drives living costs upward.

If you're getting antsy waiting on news of a 2026 COLA, you're in luck -- you don't have to wait much longer. The Social Security Administration (SSA) is gearing up to announce next year's COLA on Oct. 15. But there are steps you can take now to prepare for that news, especially if it ends up being a disappointment.

Don't get totally caught off guard

The SSA can't officially make a COLA announcement until it has a full set of third-quarter inflation data. But you also don't need to head into October completely in the dark about 2026's Social Security COLA.

There are initial estimates out there based on inflation readings to date. The nonpartisan group The Senior Citizens League, for example, is anticipating a 2.7% COLA in the new year.

Of course, a lot could change in the month of September. If inflation levels pick up even more than they did in August, it could lead to a larger Social Security COLA for 2026. But we won't know more until Oct. 15.

Prepare now in case the news isn't that great

A 2.7% Social Security COLA would be an improvement over the 2.5% raise beneficiaries got at the start of 2025. But many seniors would probably agree that a 2.7% increase isn't much to write home about -- especially given the way living costs have been soaring.

If a 2.7% Social Security COLA doesn't sound like it will cut it for you, rather than sit back and wait to be disappointed by next year's raise, take steps to improve your financial situation.

Start by assessing your spending. Review your bank and credit card statements to see where your money's been going and identify costs you can cut if money has been tight. Even a few small changes could go a long way.

If your financial stress is pretty constant, rather than limit yourself to small changes, think big. Downsize out of a larger home if you're struggling to keep up with the property taxes, insurance, and maintenance. Or dump a car, if it's a struggle to pay for one, and find other ways to get around (perhaps a combination of public transportation, rideshares, and favors from friends).

You can also consider going back to work in some capacity to boost your retirement paycheck. And the good news is that you can work and collect Social Security at the same time (though if you have not yet reached full retirement age, you'll be subject to an earnings test).

News of an official 2026 Social Security COLA is almost here. Once it arrives, you can prepare by calculating how much your monthly benefits will go up in the new year. But there are steps you can take prior to Oct. 15 to improve your financial picture and buy yourself some much-needed financial relief.

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