Social Security beneficiaries will receive higher monthly payments in 2026 following the latest Cost-of-Living Adjustment (COLA). At the same time, another change under the Social Security Fairness Act is increasing benefits for certain public sector workers by removing rules that previously reduced their payments.
Although both changes lead to larger benefits, they work differently. The annual COLA applies to nearly all Social Security recipients, while the Fairness Act affects a specific group of beneficiaries whose payments were previously reduced under older provisions of the law.
COLA
The Social Security Administration (SSA) announced that benefits will increase by 2.8% in 2026. The adjustment will add an average of about $56 per month for nearly 71 million people receiving Social Security benefits.
The increase is slightly higher than the 2.5% COLA that took effect in January 2025.
The new payment amounts will begin with benefits issued in January 2026, covering benefits earned in December 2025.
Calculation
Each year, Social Security’s Cost-of-Living Adjustment is determined using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The purpose of the adjustment is to help benefits keep pace with inflation by increasing payments when consumer prices rise.
A higher inflation rate generally results in a larger COLA, while lower inflation typically produces a smaller annual increase.
Impact
The 2.8% increase applies to several groups of beneficiaries, including:
- Retired workers
- Disabled workers
- Survivor beneficiaries
- Supplemental Security Income (SSI) recipients
Every eligible recipient will receive the same percentage increase, although the actual dollar amount will vary depending on the size of each person’s monthly benefit.
| 2026 COLA Overview | Details |
|---|---|
| COLA Increase | 2.8% |
| Average Monthly Increase | About $56 |
| Previous COLA (2025) | 2.5% |
| Beneficiaries Affected | Nearly 71 million |
| First Higher Payment | January 2026 |
Fairness
In addition to the annual COLA, the Social Security Fairness Act is increasing benefits for certain beneficiaries whose payments had previously been reduced.
President Joe Biden signed the Social Security Fairness Act into law on January 5, 2025.
The legislation repealed two long-standing provisions:
- Windfall Elimination Provision (WEP)
- Government Pension Offset (GPO)
These rules had reduced Social Security benefits for many public employees who also received pensions from government jobs that were not covered by Social Security.
Workers
The Fairness Act primarily benefits public sector employees, including:
- Teachers
- Firefighters
- Police officers
- State government employees
- Local government employees
Many of these workers paid into Social Security during part of their careers while also earning pensions from separate government employment.
With the repeal of WEP and GPO, eligible beneficiaries may now receive larger monthly Social Security payments than they did under previous law.
Retroactive
The Fairness Act applies retroactively to January 2024.
As a result, eligible beneficiaries may receive back payments covering benefits that were previously reduced.
According to the Social Security Administration, retroactive payments began in February 2025, and the agency continues processing eligible cases.
Because millions of records require review and recalculation, the SSA expects full implementation of the law to take more than a year.
Differences
Although both changes increase Social Security payments, they serve different purposes.
| Change | Who Benefits |
|---|---|
| 2.8% COLA | Nearly all Social Security recipients |
| Fairness Act | Eligible public workers affected by WEP and GPO |
The COLA is an annual inflation adjustment that helps maintain purchasing power for beneficiaries.
The Fairness Act is a legislative change that removes benefit reductions previously applied to certain government employees and their families.
Outlook
For many retirees and beneficiaries, the 2026 COLA will provide a modest increase to help offset higher living costs. At the same time, eligible public sector workers may see substantially larger payments because of changes under the Social Security Fairness Act.
While the COLA affects almost every Social Security recipient, the Fairness Act applies only to those whose benefits were previously reduced under the Windfall Elimination Provision or the Government Pension Offset. Together, these two changes represent separate efforts to increase Social Security payments in 2026 while addressing both inflation and long-standing benefit rules.
FAQs
What is the 2026 Social Security COLA?
Benefits will increase by 2.8% in 2026.
How much is the average monthly increase?
About $56 per month on average.
Who benefits from the Fairness Act?
Eligible public sector workers and families.
What did the Fairness Act repeal?
The WEP and GPO benefit reduction rules.
