Social Security COLA 2026: 2.8% Raise Set; What It Means for Your Check, Medicare, SSI, and VA Benefits

The Social Security COLA for 2026 is 2.8%, lifting payments for roughly 71 million people beginning in January. On average, retired workers will see about $56 more per month. The same COLA flows through to SSI and to federal programs that are statutorily tied to Social Security’s inflation index—most notably VA disability compensation.

Key numbers at a glance for 2026

• COLA: +2.8% (applies to Social Security and SSI).

• Average retired worker benefit: ~$2,071/month after the increase (about +$56).

• SSI timing: New rate reflected with the December 31, 2025 payment (the January 2026 benefit payable early due to the holiday).

• Earnings test (under full retirement age): $24,480; $1 withheld for every $2 above the limit.

• Earnings test (reaching FRA in 2026): $65,160; $1 withheld for every $3 above that limit until the month you hit FRA.

• Taxable wage cap (Social Security payroll tax): $184,500.

• One work credit: $1,890 of covered earnings.

VA disability: Veterans’ compensation checks rise by the same 2.8% COLA, with the first payment at the new rate arriving December 31, 2025 (covers January).

Medicare Part B in 2026: what to expect

The standard Medicare Part B premium for 2026 is projected to be about $206.50/month, up from $185 in 2025. (That projection comes from the annual trustees outlook; the official 2026 amount posts in the fall once CMS finalizes it.) The Part B deductible is likewise projected at $288 (up from $257). Because the average Social Security raise is roughly $56, a Part B increase in this range would absorb a meaningful share of the monthly COLA for many beneficiaries.

Part D (drug coverage) guideposts for 2026

• Base beneficiary premium: $38.99.

• Maximum deductible cap: $615.

• Open enrollment runs Oct. 15–Dec. 7; it’s the best window to check whether a different plan lowers total costs.

When the 2026 COLA shows up and how to see your exact amount

• Social Security: New benefit rates apply to December 2025 benefits, paid in January 2026 (on your regular payment date).

• SSI: The January 2026 SSI payment is issued Dec. 31, 2025 due to the New Year’s holiday schedule.

• How to check your number: Log in to my Social Security to view your 2026 COLA notice, updated payment amount, and the Medicare Part B deduction that will be taken from your check if you’re enrolled.

Why the COLA is 2.8%

The Social Security COLA is set by the CPI-W, comparing the July–September average of the current year to the same period a year earlier. The July–September 2025 CPI-W reading rose 2.8%, so benefits rise by the same percentage. This formula is automatic; no action is required by beneficiaries to receive the increase.

Planning moves to keep more of your raise

1. Review Medicare choices. If the standard Part B premium and your current Part D plan would eat into your raise, use open enrollment to compare drug formularies and total out-of-pocket costs.

2. Check withholding and taxes. Higher benefits may nudge taxable Social Security amounts depending on other income. Adjust withholding or quarterly estimated taxes if needed.

3. Coordinate with VA benefits. If you receive both VA compensation and Social Security/SSI, both checks will reflect the 2.8% bump on the timetables noted above.

4. Watch the earnings test. If you work before FRA, the $24,480 limit matters; plan hours or bonuses to avoid unwanted withholding.

Frequently asked clarifiers

• Do I need to apply for the COLA? No. It’s automatic.

• Will everyone get $56? No. $56 is an average. Your increase is 2.8% of your current benefit (before Medicare premiums), rounded as the program requires.

• What if I don’t see the new amount? Check my Social Security for your benefit letter and verify whether your Part B deduction or other withholdings changed. If something looks off, call Social Security or your Medicare plan.

The 2026 COLA of 2.8% provides a modest but real raise for retirees, people with disabilities, survivors, and SSI recipients—and it carries through to VA disability compensation. Keep an eye on the final Medicare Part B premium number when it’s posted; pairing your COLA with smart Medicare choices during open enrollment can preserve more of your monthly increase.