Will Social Security Benefits For Maine Residents Increase in 2026?
Considering how the cost of nearly everything has skyrocketed over the last few years, it is not a big surprise that many people are concerned about how much of an increase people who receive Social Security benefits will see in the coming year.
According to the Social Security Administration website, there is normally a Cost Of Living Adjustment (COLA) each year.
Generally, it goes along with the cost of inflation. For example, in 1975 it was 8%. In 2019, it was 1.6%. In 1980, recipients saw a huge increase of 14.3%
However, not every year sees an increase in the amount of benefits. There were no increases in 2009, 2010, and 2015.
So, how much will SSI benefits increase in 2026? Or, will there be no increase?
Normally, we find out by the middle of the month, but the shutdown has delayed the release of the COLA. According to an article on the WCSH 6 website, while we won’t know the exact percentage until Friday, October 24, an advocacy group for seniors predicts the 2026 COLA will be 2.7%.
An increase of 2.7% means that the average recipient would get about an extra $50 per month.
The Senior Citizens League updates its COLA forecast each month, using data from the Consumer Price Index for Urban Wage Earners, along with the national unemployment rate and Federal Reserve interest rates.
The September data always plays a key role in determining the COLA for the coming year.
Every year, Social Security benefits go up a little to help keep pace with rising costs. That adjustment is called the cost of living increase and it is usually figured out using what is known as the Consumer Price Index for Urban Wage Earners and Clerical Workers. The number crunchers look at the months of July through September to see how much prices have climbed.
The fact that they use data from September is one of the main reasons why the release of the COLA has been delayed. The government shutdown has delayed the September inflation report. Without those numbers, the Social Security Administration is stuck. They cannot finish the math that tells us how much benefits should go up next year.
There has also been an ongoing push to change the way this increase is calculated. Many argue that older Americans spend their money very differently. They have higher costs for health care, food and medicine. That is why some believe another inflation measure called the CPI E would make more sense. It focuses on the spending habits of seniors and could paint a more accurate picture of what they are facing.
For now, everyone is still waiting to see the final numbers and what it means for next year’s increase.