The Social Security Administration (SSA) has announced a 2.8 % cost-of-living adjustment (COLA) for 2026, impacting retirement benefits, Supplemental Security Income (SSI), and taxable maximum wages. Learn what changes are ahead and how to prepare.
What’s Changing
Starting in January 2026, the SSA will implement a 2.8 % increase in benefits for most recipients:
- Roughly 71 million Social Security beneficiaries will see the 2.8 % COLA.
- Nearly 7.5 million SSI recipients will see an increase starting December 31, 2025.
- On average, retirement benefits will rise by about $56 per month.
Over the last decade, COLAs have averaged around 3.1 %.
Why This Matters
A cost-of-living adjustment helps benefits keep pace with inflation, supporting beneficiaries’ buying power across time. For many retirees and individuals on fixed incomes, even a modest increase like 2.8 % can make a meaningful difference in covering rising costs for housing, health care, and everyday living. The SSA Commissioner emphasized that “Social Security is a promise kept… the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities.”
Additional Changes to Know
- The maximum amount of earnings subject to Social Security tax (the taxable maximum) will increase to $184,500 from the prior amount of $176,100.
- Beneficiaries will begin receiving notifications of their new benefit amounts by mail in early December. If you have a personal “my Social Security” account, you can view your COLA notice online — setting up text or email alerts is possible too.
- For those on Medicare and Social Security, 2026 benefit amounts will be posted via the Message Center in “my Social Security” starting in late November.
What You Can Do Now
- Check or create your “my Social Security” account. If you don’t have one, consider setting up your online account by November 19 to view your COLA notice online.
- Review your budget and expenses. With inflation pressures continuing, plan how the extra benefit will be used—whether to offset rising costs or be saved for future needs.
- Stay informed about related changes. Benefit increases sometimes coincide with changes in Medicare premiums or other Social Security thresholds, so it’s wise to monitor updates from the SSA.
- Beware of scams. As always, the SSA will never call unsolicited to ask for your Social Security number, bank account, or demand payment to receive your COLA. Any such outreach is likely fraudulent.
Why This Increase Changed
The COLA is tied to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Bureau of Labor Statistics under the Social Security Act.
Given current economic conditions—particularly inflation and wage growth—the 2.8% adjustment reflects the SSA’s commitment to helping benefits retain value in real terms.
Final Thoughts
While a 2.8% increase may not erase all the effects of inflation, it’s a meaningful uplift for millions of beneficiaries. If you or a loved one receive Social Security or SSI, this adjustment gives a boost beginning in early 2026. By taking proactive steps now—such as reviewing your benefits online and planning how to use the increase—you’ll be better positioned to make the most of it.
More Details & Official Links
- For the full announcement: Social Security Announces 2.8 Percent Benefit Increase for 2026
- For detailed COLA methodology and SSA updates: SSA COLA Information