2026 Social Security COLA: Top 10 States for Largest Retiree Raises
The 2026 Cost-of-Living Adjustment (COLA) for Social Security beneficiaries was recently announced, bringing excitement and relief to many recipients. This annual adjustment, designed to counteract inflation, shows varying dollar amounts across different states. While all recipients will experience the same percentage increase, the actual dollar gains will fluctuate based on state-specific median benefits.
The 2026 COLA Details
The COLA for 2026 is set at 2.8%, which translates into an average increase of $56 for retirees. The 2024 average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) was recorded at 308.729, increasing to 317.265 in 2025. This change reflects ongoing inflation trends affecting common goods and services.
Despite this increase being welcomed, it remains lower than the historical average of 3.6% since COLAs were instituted in 1975. In recent years, from 2010 to 2016, no COLA was issued during specific years, heightening concerns about benefits in the face of rising living costs.
Top 10 States for the Largest Retiree Raises in 2026
The upcoming COLA will have the most significant dollar impact in the following states, reflecting their higher median benefits:
| State | Median Retired-Worker Benefit | Estimated Benefit After 2026 COLA |
|---|---|---|
| New Jersey | $2,099.70 | $2,158.00 |
| Connecticut | $2,083.70 | $2,142.00 |
| Delaware | $2,064.00 | $2,122.00 |
| New Hampshire | $2,039.00 | $2,096.00 |
| Maryland | $2,007.70 | $2,064.00 |
| Michigan | $2,004.70 | $2,061.00 |
| Washington | $1,991.70 | $2,047.00 |
| Minnesota | $1,981.70 | $2,037.00 |
| Indiana | $1,952.70 | $2,007.00 |
| Massachusetts | $1,946.00 | $2,000.00 |
Factors Influencing Benefits
Social Security benefits are determined by the highest 35 years of an individual’s earnings. Consequently, states with higher lifetime earnings typically show greater median benefits. Interestingly, states like California and New York, known for high incomes, are absent from this top list. This is likely due to the higher cost of living prompting retirees to relocate before claiming Social Security.
As recipients prepare for the changes in 2026, they can look forward to a modest increase that may help alleviate some financial pressures attributed to everyday expenses. The 2.8% COLA represents an important step in ensuring that retirees can maintain their purchasing power in an ever-evolving economic landscape.
