Millions of Americans are set to receive a modest increase in their monthly benefits next year. The Social Security Administration (SSA) ann...
Millions of Americans are set to receive a modest increase in their monthly benefits next year. The Social Security Administration (SSA) announced on Friday that approximately 75 million people receiving Social Security and Supplemental Security Income (SSI) will get a 2.8% cost-of-living adjustment (COLA) for 2026.
This adjustment will begin with benefits payable to Social Security recipients in January 2026. Increased payments for SSI recipients will start slightly earlier, on December 31, 2025.
What the 2.8% COLA Means for Recipients
For the average retired worker, the 2.8% increase will amount to approximately $56 more per month. This will bring the average monthly retirement benefit from about $2,015 to $2,071.
This COLA is slightly higher than the 2.5% adjustment received in 2025 but remains significantly lower than the increases seen in the two preceding years—3.2% in 2024 and a historic 8.7% in 2023, which was driven by record-high inflation. The 2026 figure reflects a continued moderation in the rate of inflation.
The annual COLA is calculated based on the third-quarter (July, August, and September) data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Other Adjustments and Considerations
While benefits are set to rise, other related costs may also increase. Notably, any adjustments to Medicare Part B premiums for 2026, which are typically announced in the fall, could offset a portion of the COLA increase for many seniors, as these premiums are often deducted directly from Social Security payments.
The SSA also announced that the maximum amount of earnings subject to the Social Security tax will increase. In 2026, that taxable maximum will rise to $184,500, up from $176,100 in 2025.
Advocacy groups, such as The Senior Citizens League and AARP, have noted that while any increase is helpful, the 2.8% adjustment may not be enough for seniors struggling with the high costs of essentials like housing and healthcare. These groups continue to advocate for a different inflation measure, the Consumer Price Index for the Elderly (CPI-E), which they argue more accurately reflects the spending habits and costs faced by retirees.
Social Security recipients can expect to be notified by mail starting in early December about their new benefit amount. Those with an online "my Social Security" account can view their COLA notice online.
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