2.8 Percent COLA Increase for 2026 Social Security Benefits

Takeaways

• Social Security benefits will increase by 2.8 percent in 2026 due to the annual cost-of-living adjustment (COLA).
• This increase applies to Social Security and Supplemental Security Income (SSI) recipients, with payments starting in January 2026 for Social Security and December 31, 2025, for SSI.
• The average retired worker’s monthly benefit is expected to increase by $56, to about $2,064.
• While the COLA aims to offset inflation, some beneficiaries may find it insufficient to cover rising costs, especially for health care. In addition, Medicare Part B premiums will further reduce the effective increase.
• The 2.8 percent COLA is considered modest compared to the average over the past decade and may not fully align with the specific expenses faced by older Americans.

On October 24, 2025, the Social Security Administration (SSA) announced that Social Security beneficiaries will receive a 2.8 percent cost-of-living adjustment (COLA) in 2026. This raise will apply to Supplemental Security Income (SSI) and Social Security recipients, a group that includes retirees, their spouses and survivors, as well as those who receive disability benefits.

The COLA, which is tied to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), is designed to help keep benefit payments aligned with inflation. According to the SSA’s fact sheet, nearly 71 million Social Security beneficiaries will see the increase starting in January 2026, and approximately 7.5 million SSI recipients will begin receiving the higher payments on December 31, 2025. Some people receive both SSI and Social Security benefits.

The 2.8 percent COLA increase is a small uptick from the 2.5 percent COLA increase for 2025. In dollar terms, the average retired worker’s monthly benefit is expected to rise by about $56 per month, to about $2,064.

What This Means for Social Security Recipients

If you currently receive Social Security benefits, you can expect your January 2026 benefit amount to reflect the 2.8 percent increase (unless your benefit is offset by other deductions or changes). If you receive SSI, the increase will start with your December 31, 2025, payment. Information about the new benefit amounts will begin arriving in the mail in early December; those with a my Social Security account can view their notice online.

Though this raise helps offset inflation, it may not be enough to keep up with the rising costs of housing, health care, and other necessities many seniors must pay for. In addition, for seniors who are enrolled in Medicare, a portion of their Social Security payments goes toward their Medicare Part B premiums. The premium for 2026 hasn’t been announced yet but it will reduce the amount of money received from Social Security that seniors have to use for other expenses.

Context and Outlook

This cost-of-living adjustment is modest compared with some previous years of higher inflation. Over the past decade, the average COLA has been about 3.1 percent.

Because CPI-W is still being influenced by inflation in specific sectors that don’t necessarily align with many older Americans’ typical expenses, some seniors say the increase will not fully cover the cost of their increasing expenses. For example, most younger Americans don’t have the health care and long-term care costs that older Americans have, and these costs tend to increase at a higher rate than inflation.

Additional Reading

For additional reading on topics related to Social Security benefits, check out the following articles:

• An Introduction to Social Security Retirement Benefits
• Report: Americans Overwhelmingly Support Social Security
• Could the Trump Administration Privatize Social Security?
• Does Divorce Affect Social Security Spousal Benefits?
• 10 Ways to Maximize Your Social Security Retirement Benefits