The Calculation: How Social Security Determines the Official Rate
While advocacy groups release monthly predictions, the official adjustment relies on a strict, legally mandated timeline. The Social Security Administration does not look at inflation across the entire calendar year. Instead, they focus exclusively on the third quarter.
The Bureau of Labor Statistics gathers CPI-W data for the months of July, August, and September. In mid-October, the government averages the data from these three months and compares it to the third-quarter average from the previous year. If the current year’s average is higher, the percentage difference becomes the official COLA for the upcoming year. If prices remain flat or decrease (deflation), benefits stay exactly the same—the law prohibits Social Security from reducing benefits due to deflation.
Once the government announces the official rate in October, the Social Security Administration applies the adjustment to benefits payable in January. Because Social Security pays benefits a month in arrears, the increase officially takes effect in December but shows up in the payment you receive in January 2027.
3.8% COLA is a disgrace to those on SSI.
You get a whopping extra $79 and medicare increases its monthly requirement.
After that the $79 is shrunk down to if your lucky $10,.
Quit wasting the money we put in from our salaries. and increase the COLA so we can keep up with inflation and not give it to Illegals…
Depressed and frustrated senior citizen…………..
I’ll get about $154 more
COLA is so broken. The cost of gas has made almost a 20% increase and cost of food has nearly 30% increase on some items. 3% is not even a scratch on the surface. Its hard enough to get SSI but to work your whole life just to struggle because the government can’t do basic math is getting really old. COLA is suppose to reflect the Cost of Living. Ao if cost of living makes a 20% increase that year the SSI and VA Disability benefits should follow suit. Quit punishing the people who the government has lied to the longest.
Yeah, we appreciate everything we get, but this still is not enough for the older people
The only good thing I have to say is I’m more and more grateful for the Blue Cross- Blue Shield insurance that, as a former VA employee, I carried over into retirement. Comparing BCBS with Medicare plan B, the latter is a ripoff.
3.8 per cent of nothing is still nothing
Right on .They don’t get social security and the right wing lies about it to keep us divided by their ignorant base that don’t know any better since they are told to stay stupid and not research or think for themselves
So we get a raise in social security but then Medicare raises its prices so SS is a very little increase. How about we make Congress paypack the monies they STOLE from Social Security and left WORTHLESS IOU’s in its place? Plus interest, it might make Social Security solvent. And then ahow about Congress has to pay into Social Security the way other people HAVE TO. How about any time they make a new rule, they have to follow it also and not be exempt! I’d be for all of that!
So we get a raise but Medicare immediately raises what they pull out. Your ‘raise’ is drastically reduced. How about we do 2 things: Make Congress pay back (with interest) the Worthless IOU’s they left when they Stole funds from Social Security. And make Congress pay into Social Security the way the people who work have to. Just a thought.
You get a bump in social security and Medicare immediately raises you costs so how much do you really realize in the SS gain? If they made Congress pay back all the WORTHLESS IOU’s they left when they stole monies from Social Security, it would put social security on solid financial ground. But they won’t pay it back yet keep raising their (Congress’) salaries ! And how about if Congress had to pay into social security instead of exempting themselves from it?