The Social Security Administration has announced a 2.8 percent cost-of-living adjustment for 2026, increasing benefits for roughly 75 million Americans who receive Social Security or Supplemental Security Income. The adjustment is designed to help beneficiaries keep pace with rising prices and will take effect at the start of the new year.
According to the SSA’s October 2025 announcement, the increase will raise the average monthly retirement benefit by about $56 beginning in January 2026. While the adjustment is modest compared with some recent years, it continues a pattern of annual updates tied to inflation.
Increase
Nearly 71 million Social Security beneficiaries will see the 2.8 percent increase reflected in payments starting in January 2026. About 7.5 million SSI recipients will receive their higher payments slightly earlier, beginning December 31, 2025.
The SSA applies the annual adjustment automatically. Beneficiaries do not need to take action to receive the higher amount, as the change will be included in regular monthly payments.
Calculation
The cost-of-living adjustment is based on inflation data. Each year, the SSA compares the average Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, from the third quarter of the current year to the third quarter of the previous year.
The CPI-W is calculated by the Department of Labor’s Bureau of Labor Statistics and tracks changes in prices for goods and services commonly purchased by working households. When inflation rises, benefits are adjusted upward to help preserve purchasing power.
Context
The 2.8 percent COLA for 2026 is slightly higher than the 2.5 percent increase applied in 2025. Over the past decade, the average annual adjustment has been about 3.1 percent, placing the upcoming increase just below the long-term average.
Recent years have shown wide variation. Benefits rose 3.2 percent in 2024, while 2023 brought an unusually large 8.7 percent increase amid high inflation. In 2022, the adjustment was 5.9 percent. The smaller increase for 2026 reflects more moderate inflation compared with those periods.
| Year | COLA Percentage |
|---|---|
| 2022 | 5.9% |
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% |
| 2026 | 2.8% |
Impact
For many retirees, Social Security represents a primary source of income. Even relatively small percentage changes can affect monthly budgets, especially as beneficiaries manage housing, food, utilities, and health care costs.
An average increase of $56 per month may help offset higher prices, but individual increases will vary based on benefit amounts. Higher earners will generally see larger dollar increases, while those with smaller benefits will see more modest changes.
Notices
The SSA will begin mailing simplified COLA notices to beneficiaries in early December 2025. These notices explain the new benefit amount and when it will take effect.
Beneficiaries with my Social Security accounts can view their COLA notices online and opt to receive updates by text or email. The agency has encouraged online access as a faster way to review benefit information.
Role
Social Security Commissioner Frank J. Bisignano described the COLA as central to the program’s mission, noting that it helps ensure benefits reflect current economic conditions. The adjustment mechanism, established under the Social Security Act, is intended to protect beneficiaries from the effects of inflation over time.
While the 2026 increase does not match the unusually large adjustments of recent years, it continues the annual process of updating benefits in response to price changes.
The 2.8 percent COLA underscores how closely Social Security benefits are tied to inflation trends. For millions of Americans, the adjustment provides a measure of stability, even as economic conditions continue to evolve. Knowing how the increase is calculated and when it takes effect can help beneficiaries better plan for the year ahead.
FAQs
When does the 2026 COLA take effect?
January 2026 for Social Security and December 31, 2025 for SSI.
How much is the 2026 COLA?
The adjustment is 2.8 percent.
How many people are affected?
About 75 million Social Security and SSI recipients.
How is the COLA calculated?
It is based on changes in the CPI-W inflation index.
