While COLA may be most commonly associated with a carbonated beverage, that’s not all it can mean.
Short for cost-of-living adjustment, the COLA is the yearly change made to government-funded income payments to keep up with things like inflation so the recipients are still able to afford essentials as prices fluctuate.
Social Security recipients are among those who wait each year to see how their incomes will be adjusted. Payments went up nearly 3% in 2026 to account for the changing costs of items such as gas, food and clothing.
How much could Social Security payments increase?
The official announcement of what the change will be comes in October and goes into effect in January, but the nonpartisan senior advocacy group known as The Senior Citizens League is already estimating that it will go up about 3.6%. That would increase Social Security checks by nearly $70 a month.
They come from the federal Social Security Administration, and the benefit is for retired workers and those with disabilities or for their designated beneficiaries.
The adjustment is also for recipients in the Supplemental Security Income program, which assists those with limited or no income or resources, those 65 or older and those with a qualifying disability.
COLA increase for NJ police, firefighters?
Social Security is the most widely accessible program that has a COLA, but there are other programs on the state and federal levels for which advocates have called for adjustments.
State Sen. Mike Testa has already said he intends to introduce legislation to restore a COLA for the state’s retired police and firefighters.
The South Jersey senator said on social media that “it’s time we take care of the men and women who have always taken care of us.”
His legislation would redirect funding from programs benefiting illegal immigrants.
This article originally appeared on NorthJersey.com: How much could Social Security checks increase in 2027? COLA explained
