Social Security beneficiaries receive an annual cost-of-living adjustment (COLA) to keep the purchasing power of benefits aligned with rising prices across the economy. The official 2026 COLA will not be determined until October 2025 because it depends on inflation data from the third quarter,

Inflation has a tendency to erode retirees’ buying power over time. That’s why Social Security cost-of-living adjustments, or COLAs, are so important. Automatic Social Security COLAs were introduced back in 1975.

Another round of Social Security retirement checks will be paid this week. Why It Matters. Social Security benefits are a vital source of income for tens of millions of Americans.