Social Security COLA 2026: Key MCQs & FAQs (Official Updates & Projections)

COLA 2026: Multiple-Choice Questions (MCQs)

1. What is the officially announced Cost-of-Living Adjustment (COLA) percentage for Social Security benefits and SSI payments in 2026?

1. 2.5%
2. 2.8%
3. 3.1%
4. Between 2.6% and 2.8%

2. For an average retired worker, approximately how much is the projected monthly increase resulting from the 2026 COLA of 2.8%?

1. \$43
2. \$59
3. \$56
4. \$672

3. What specific index is mandated by the Social Security Act to calculate the annual COLA?

1. Consumer Price Index for the Elderly (CPI-E)
2. Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)
3. Producer Price Index (PPI)
4. Medicare Trustees Report Index

4. What event primarily caused the delay in the initial announcement of the 2026 COLA, which was originally scheduled for October 15th?

1. A congressional debate over Medicare Part D changes
2. The Federal Reserve's policy meeting
3. The federal government shutdown
4. A delay in the release of the Part B premium projection

5. When do the enhanced Social Security payments, resulting from the 2026 COLA, begin for most Social Security beneficiaries?

1. December 31, 2025
2. October 24, 2025
3. January 1, 2026
4. In the fall of 2025

6. What is the projected maximum taxable earnings subject to Social Security payroll taxes for 2026?

1. \$176,100
2. \$170,000
3. \$184,500
4. \$109,000

7. Based on an AARP survey, what percentage of Americans aged 50 and over believe the Social Security COLA of 2.8% does not keep up with rising prices?

1. 39%
2. 69%
3. 72%
4. 77%

8. According to the Medicare Trustees Report, what is the projected standard monthly premium for Medicare Part B in 2026?

1. \$185.00/month
2. \$257.00/month
3. \$206.50/month
4. \$214.50/day

9. How is the projected 2026 COLA expected to impact the projected increase in the Medicare Part B standard premium for most Social Security recipients?

1. The COLA is expected to be entirely consumed by the Part B premium increase.
2. The COLA is expected to eat up almost 40% of the average COLA, but recipients will still see larger checks.
3. The Part B premium increase will be canceled out by the Part D premium stabilization program.
4. The COLA is not expected to be high enough to cover the Part B premium increase.

10. What is the projected increase in the Medicare Part D out-of-pocket maximum cost for drugs in 2026, up from \$2,000 in 2025?

1. \$35
2. \$2,050
3. \$2,500
4. \$2,100

COLA 2026: Frequently Asked Questions (FAQs)

Q: What is the official COLA increase for Social Security and SSI benefits in 2026?

A: The Social Security Administration (SSA) officially announced a 2.8 percent Cost-of-Living Adjustment (COLA) for 2026 benefits. This figure was determined using the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Q: When does the 2026 COLA take effect for beneficiaries?

A: The adjustment is effective January 1, 2026, for Social Security benefits. However, Supplemental Security Income (SSI) recipients will see their enhanced payments commence slightly earlier, on December 31, 2025.

Q: How much will the 2026 COLA increase benefits for the average retired worker?

A: The 2.8 percent increase is expected to provide an average monthly increase of approximately \$56 for retired workers. For a retired worker with an average monthly benefit of \$2,015 in 2025, this brings the benefit up to \$2,064.

Q: Why was the 2026 COLA announcement delayed?

A: The announcement was delayed because of a federal government shutdown. The shutdown postponed the release of the key September CPI report by the Bureau of Labor Statistics (BLS), which is required to calculate the COLA.

Q: How will the COLA interact with projected Medicare Part B premium increases in 2026?

A: While the Medicare Part B standard premium is projected to increase to \$206.50/month in 2026, the COLA is expected to more than cover the full Part B premium increase for virtually all enrollees. However, the projected Part B premium increase will consume almost 40% of the projected average COLA.

Q: What is the overall sentiment among older Americans regarding the 2026 COLA?

A: The majority of older Americans surveyed reported that the COLA does not keep up with their rising costs. Seventy-seven percent (77%) of Americans age 50 and over said the 2.8% COLA is not enough.