Every year, all benefits disbursed by the Social Security Administration (SSA) undergo an increase relative to year over year inflation. This is known as the Cost of Living Adjustment (COLA) and its implementation allows the average benefit check to retain its buying power in the face of growing costs. Since 1975, the COLA has been calculated and implemented automatically, and during this time, there has been a total of three years where the COLA was announced at 0%. Prior to 1975, benefits were not adjusted for inflation on a regular schedule. Instead, Congressional approval was required, which resulted in increases being implemented at random.
For 2025, the COLA was announced at a modest 2.5%, which was significantly lower than the 3.2% COLA of 2024. Based on the data that is available to date, projections for the 2026 COLA are currently standing at 2.7%. The SSA was previously scheduled to announce the 2026 COLA on October 15th, however, due to the government shutdown, this announcement has now been pushed back. According to officials from the Trump Administration, the announcement will be made before November.
Since the COLA is a percentage increase rather than a dollar increase, the amount each respective beneficiary will receive can differ from one person to the next. Some states also have higher median incomes than others and as such, these states will likely see a “higher” COLA increase in 2026. Here is what you need to know.
Which states get the largest COLA payout?
Social Security benefits are primarily determined in relation to your lifetime earnings. Factors such as retirement age can also affect the amount you will receive in benefits, but this is still in relation to your lifetime earnings. This means that the amount each respective beneficiary receives will differ from each person to the next — and the same goes for the annual COLA increase since it is a percentage increase and not a set dollar figure. The average benefit check currently stands at a little over $2,000, and if the projected 2.7% COLA is accurate, the average retiree will receive around $54 more in their benefit checks in 2026.
With regards to lifetime earnings, some states have higher median incomes than others, which in turn, translates to higher benefits for residents of those states. Retirees earning higher benefit amounts will also see a higher COLA increase implemented to their benefits in the new year. According to The Motley Fool, a financial website, beneficiaries residing in the following ten states will have the largest increases come 2026:
- New Jersey: $2,172
- Connecticut: $2,159
- Delaware: $2,139
- New Hampshire: $2,121
- Maryland: $2,084
- Michigan: $2,067
- Washington: $2,061
- Minnesota: $2,053
- Massachusetts: $2,021
- Indiana: $2,016
The dollar figures mentioned above are the average retiree benefit after the projected 2.7% COLA increase.
2026 COLA announcement delay
The COLA is determined using a subset of the CPI called the CPI-W which is released on a monthly basis by the Bureau of Labor Statistics. The CPI-W for the third quarter of the year is measured against the same data for the previous year, and if there is an increase, this becomes the next COLA. The Bureau of Labor Statistics was previously scheduled to release the September CPI-W on October 15th, however, almost all staff at the Bureau have been furloughed since October 1st as a result of the federal government shutdown.
Since the release of data required for the COLA calculation has been delayed, the announcement will also be pushed back. The good news for seniors across the country is that a new date for this highly anticipated announcement has been confirmed by the Bureau of Labor Statistics, as well as the Trump Administration.
“BLS will publish the September 2025 Consumer Price Index (CPI) on Friday, October 24, 2025, at 8:30 A.M. Eastern Time. No other releases will be rescheduled or produced until the resumption of regular government services. This release allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits,” as per an October 10th update from BLS.
Additionally, according to a Trump Administration official who spoke with CNN, “The Bureau of Labor Statistics is calling some staff back to work to prepare its closely watched inflation gauge, the Consumer Price Index (CPI) report, despite the government shutdown.”