The Social Security Administration (SSA) has announced a 2.8% cost of living adjustment (COLA) for 2026. This increase will help nearly 75 million Americans who receive Social Security and Supplemental Security Income (SSI) benefits keep up with inflation and rising living costs.
Starting in January 2026, the average Social Security retirement benefit will rise by about $56 per month. This increase aims to ensure that seniors, people with disabilities, and survivors receiving benefits can maintain their purchasing power despite changes in the economy.
What Is the Cost of Living Adjustment (COLA)?
The COLA is an annual adjustment made to Social Security benefits based on inflation. It’s calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures how much prices have changed for everyday goods and services.
Over the past decade, COLA increases have averaged around 3.1%, though it varies each year depending on inflation rates. For comparison, the 2025 adjustment was 2.5%. The 2026 increase of 2.8% reflects a modest rise in consumer costs and is designed to help beneficiaries stay financially secure.
Who Will Receive the Increase and When
- 71 million Social Security beneficiaries will receive the 2.8% increase starting January 2026.
- 7.5 million SSI recipients will see their payments increase beginning December 31, 2025.
- Some individuals who receive both Social Security and SSI will see the adjustment reflected across both programs
Social Security Commissioner Frank J. Bisignano emphasized that this increase is part of the agency’s ongoing effort to protect the financial stability of millions of Americans: “Social Security is a promise kept, and the annual cost of living adjustment is one way we make sure benefits reflect today’s economic realities.”
Other Key Changes for 2026
In addition to the benefit increase, the maximum amount of earnings subject to Social Security tax, known as the taxable maximum _will rise from $176,100 to $184,500. This change is based on the overall growth in average wages and affects higher-earning workers who contribute to the Social Security system.
Beneficiaries will start receiving COLA notices by mail in early December 2025, outlining their new monthly benefit amount. Those with a my Social Security account can view their notice online sooner and receive text or email alerts once it’s available.
To get the notice online, individuals must create or log in to their my Social Security account and opt out of paper mailings by November 19, 2025. Setting up an account is quick and secure at www.ssa.gov/myaccount.
