The Social Security Administration just announced a slight change in benefits for next year on Friday.
Payments will increase 2.8 percent in 2026 for 75 million Americans receiving Social Security and Supplemental Security Income payments starting in 2026.
The cost-of-living adjustment means the average Social Security retirement benefit will increase by about $56 per month starting in January.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” Social Security Administration Commissioner Frank J. Bisignano said in a statement. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
Nearly 71 million Social Security beneficiaries will see the 2.8 percent increase beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025. Some recipients receive both Social Security benefits and SSI.
The increase is slightly larger than the 2.5 percent adjustment beneficiaries received for 2025, but many retirees are saying the increase isn’t enough.
The announcement was originally scheduled for October 15 but was delayed nine days due to the federal government shutdown.
The annual cost-of-living adjustment is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers as determined by the Department of Labor’s Bureau of Labor Statistics. The COLA is calculated by measuring the percentage increase in the index from the third quarter of the previous year to the third quarter of the current year.
Over the last decade, the cost-of-living adjustment has averaged about 3.1 percent. The 2.8 percent increase for 2026 is slightly above the long-term average but far smaller than recent years when inflation ran high. The COLA was 8.7 percent in 2023, 3.2 percent in 2024, and 2.5 percent in 2025.
The maximum amount of earnings subject to the Social Security tax will increase to $184,500 from $176,100 in 2026.
Social Security will begin notifying recipients about their new benefit amount by mail starting in early December. Recipients with a personal my Social Security account can view their COLA notice online. Those who do not have an online account will receive their COLA notice by mail in December.
For Social Security beneficiaries enrolled in Medicare, the actual increase in their monthly checks will depend on Medicare Part B premiums, which are deducted directly from benefit checks. Medicare trustees have projected the standard monthly Part B premium may increase to $206.50 per month from $185, an 11.6 percent increase. Medicare Part B premium amounts for 2026 have not been officially announced.
Many retirees say the annual adjustments have not been enough to cover rising expenses. Kathryn Bailey, 74, of Washington D.C., told CNBC that seniors deserve more.
“I just wish it would be more.” Bailey, a retired oncology researcher, said. The 8.7 percent cost-of-living adjustment in 2023 “helped, but I used it all,” and the projected increase for 2026 “won’t do anything,” because of high health care, rent, food and other cost increases.
The 2026 COLA will go into effect for January payments without any delay due to the government shutdown.