Social Security COLA 2026: 2.8% Increase Announced—What It Means for Your Benefits
The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, lifting monthly payments for roughly 71 million beneficiaries beginning in January 2026. The Social Security Administration (SSA) says this translates to about $56 more per month on average for retired workers. Supplemental Security Income (SSI) recipients—about 7.5 million people—will see the increase reflected starting December 31, 2025.
How the Social Security COLA 2026 was determined
The COLA for 2026 is based on the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers), comparing average inflation readings from July–September 2025 to the same months a year earlier. When the CPI-W rises, Social Security benefits and SSI are adjusted to maintain purchasing power. After a 2.5% raise in 2025 and 3.2% in 2024—following the unusually large 8.7% jump in 2023—the COLA 2026 reflects moderating, but still present, inflation pressures.
When you’ll see the 2026 COLA increase
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SSI: New amounts arrive December 31, 2025.
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Social Security (retirement, survivors, disability): New payments phase in with the January 2026 schedule (payment date depends on your birthdate or benefit type).
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COLA notices: Paper letters begin in early December 2025. Beneficiaries using online accounts can view their personalized my Social Security notice sooner and opt out of paper mail.
How much more you’ll receive from the COLA 2026
Below are illustrative Social Security benefits before and after the 2.8% COLA increase 2026. Your exact amount depends on your current benefit, deductions (such as Medicare premiums), and family situation.
| Current Monthly Benefit | +2.8% COLA | New Monthly Amount |
|---|---|---|
| $800 | +$22 | $822 |
| $1,200 | +$34 | $1,234 |
| $1,500 | +$42 | $1,542 |
| $1,800 | +$50 | $1,850 |
| $2,000 | +$56 | $2,056 |
| $2,500 | +$70 | $2,570 |
Example math: New amount = Current benefit × 1.028. Dollar changes above are rounded.
Key Social Security numbers for 2026
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COLA for 2026: 2.8%
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Average retiree increase: About +$56/month
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Beneficiaries impacted: ~71 million (Social Security) + ~7.5 million (SSI)
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Taxable maximum (wage cap): $184,500 in 2026 (up from $176,100)
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Notices: Mailed early December 2025; available sooner in online accounts
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Medicare note: Premium changes for 2026 are typically finalized later in the fall; your net benefit may differ once premiums are applied.
What the 2026 COLA means for retirees and workers
For current beneficiaries: A 2.8% boost helps offset ongoing increases in essentials, though actual relief varies by household. If you’re enrolled in Medicare, any premium change will factor into your net Social Security deposit. Reviewing your 2026 notice—especially the line-by-line deductions—is essential.
For near-retirees and workers: The higher taxable maximum ($184,500) means more earnings are subject to Social Security payroll tax next year. That can increase contributions now and, for higher earners, supports potentially larger future benefits within program formulas.
For SSI recipients: The earlier application date (Dec. 31) means the raise appears one cycle sooner than traditional Social Security benefits. If you receive both SSI and Social Security, your combined notice will clarify each component.
Checking your new amount and staying organized
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Log in to your my Social Security account to see your personalized COLA 2026 notice as soon as it’s posted and to set text/email alerts.
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Verify deductions listed on your January 2026 payment (tax withholding, Medicare premiums, or other adjustments).
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Update direct deposit details if you’ve changed banks to avoid delays.
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Plan your budget using the exact increase; the headline percentage can differ from your net deposit once deductions are applied.
FAQs on the 2026 COLA increase for Social Security
Is the COLA automatic?
Yes. COLA increases are automatic under federal law and do not require congressional action.
Will everyone get exactly 2.8% more in their bank account?
The gross benefit rises by 2.8%. Your net deposit may differ due to Medicare premiums, tax withholding, or other deductions.
When will I know my exact 2026 amount?
Most people will see it in their December 2025 notice (paper or online). The new amount pays out on your regular January 2026 date.
Why does SSA use CPI-W and not a senior-specific index?
Current law ties COLA to CPI-W. Some proposals would switch to other indexes, but any change would require legislation.
