Each year, the Social Security Administration (SSA) adjusts benefit payments to keep them aligned with changes in the cost of living.
This increase is known as the cost-of-living adjustment (COLA). For 2026, the COLA has been announced, and it will affect retirees, the disabled, and survivor beneficiaries.
Understanding how the 2026 increase works, when it takes effect, and how much your benefit might rise is useful for planning your finances.
What is the 2026 Social Security COLA?
The 2026 COLA has been announced as a 2.8 % increase for Social Security benefits and Supplemental Security Income (SSI) payments.
This is slightly higher than the 2.5 % raise in 2025.
The SSA states this adjustment applies automatically to eligible beneficiaries based on inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
When will the 2026 increase take effect?
The benefit increase will be reflected with benefits payable in January 2026 for most Social Security retirement and disability cases.
SSI recipients will see the adjustment with the December 31, 2025, payment, which is received at the start of January.
Because the COLA depends on CPI-W for the third quarter (July-Sept) of the year, the SSA publishes the final number each October.
How much will monthly benefits rise on average?
With a 2.8 % increase, the average retiree’s monthly benefit will rise by approximately $56 per month.
For example, if the average payment in 2025 was about $2,015, the 2026 benefit would be approximately $2,071.
Married couples would see an average payment rise to about $3,208, up from around $3,120.
Keep in mind, individual benefit amounts vary based on your earnings history, age at claim, and other factors.
Why did the COLA come in at 2.8 %?
The COLA uses the CPI-W from the third quarter of the prior year compared to the same period a year earlier.
Inflation in that period rose moderately, resulting in the 2.8 % figure.
Some analysts pointed out that although inflation is still elevated, it is not at the levels seen in earlier years.
In addition, cost trends for seniors (for example, healthcare or housing) can differ from the CPI-W measure, meaning some beneficiaries may feel the increase does not match their personal cost increases.
Will the COLA fully cover my cost increases?
Not necessarily. A 2.8 % raise means your benefit payment rises modestly.
But many costs for seniors, such as medical care, long-term care, or housing, can increase faster than general inflation measured by CPI-W.
As a result, while the COLA helps, it may not match the specific costs many older Americans face.
Experts caution that retirees should still plan for rising expenses beyond the COLA increase.
How does this change interact with other Social Security or tax rules?
The 2026 COLA announcement comes alongside other changes: for example, the taxable earnings limit for Social Security (the maximum wages subject to Social Security tax) rises to $184,500 in 2026.
May also impact earnings tests for beneficiaries receiving payments while still working and other indexed amounts.
It’s important to review your overall cost, taxes, and benefit schedule when factoring in the raise.
What should you do now to prepare?
First, check your “my Social Security” account to confirm your benefit amount and see if the new 2026 payment is shown.
Second, update your budget to reflect the raise. Remember, the increase is modest, so it may not fully offset cost growth.
Third, review your other sources of retirement income and whether you might need to adjust savings, spending, or work plans.
Lastly, keep an eye on premium changes (such as Medicare Part B) that may offset part of the COLA.
Planning helps you make the most of the benefit increase.
