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    Social SecurityCost-of-Living Adjustment

    COLA — Cost-of-Living Adjustment

    An annual percentage increase applied to Social Security, SSI, VA disability, and other federal benefit payments to help keep pace with inflation.

    Official source: ssa.gov

    COLA stands for Cost-of-Living Adjustment. It is an annual increase in benefits like Social Security, Supplemental Security Income (SSI), and VA disability payments. This adjustment helps these payments keep up with inflation, which is the rise in prices over time.

    Each October, the Social Security Administration (SSA) announces the COLA for the following year, and it takes effect on January 1. For example, the COLA for 2026 is 2.8% (the 2025 COLA was 2.5%). Projections for 2027 suggest a smaller increase, estimated to be between 1.2% and 3.1%.

    VA disability compensation also receives a COLA adjustment based on the same inflation index. However, for higher-income beneficiaries, the Income-Related Monthly Adjustment Amount (IRMAA) can reduce the benefits of the COLA by increasing Medicare premiums. This means that some individuals may not see the full benefit of the COLA increase in their payments.

    In real life

    • A person's Social Security payment can go up each year because of COLA.
    • Someone receiving VA disability might see a small increase in their monthly payment from COLA.
    • A senior citizen who gets SSI may get more money next year due to COLA.

    Also known as

    Cost-of-Living Adjustment

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    Frequently asked questions about COLA

    What is Cost-of-Living Adjustment (COLA)?+

    An annual percentage increase applied to Social Security, SSI, VA disability, and other federal benefit payments to help keep pace with inflation, as measured by the Consumer Price Index (CPI-W). COLA is announced each October by the SSA and takes effect January 1 of the following year.

    Who qualifies for COLA?+

    Workers who have earned enough Social Security credits, plus eligible spouses and survivors.

    How do I apply for COLA?+

    Apply online at ssa.gov, by phone at 1-800-772-1213, or in person at your local Social Security office. There's no cost to apply.

    Where can I get help?+

    Create a free account at ssa.gov/myaccount to check your earnings record and benefit estimate. BenefitKarma's free Benefit Eligibility Screener can also point you to the right Social Security program.

    Source: ssa.gov

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