Social Security Benefits to Rise 2.8 Percent in 2026

WASHINGTON, D.C. – Starting in January 2026, Social Security benefits for approximately 75 million Americans will increase by 2.8 percent, according to the Social Security Administration. The average increase for retirement benefits will translate to about $56 more each month.

This increase follows a 2.5 percent cost-of-living adjustment (COLA) in 2025 and is intended to help recipients keep pace with rising costs. Nearly 71 million beneficiaries will see this adjustment in their monthly payments, while approximately 7.5 million receiving Supplemental Security Income (SSI) will experience the increase beginning December 31, 2025.

“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,” said Frank J. Bisignano, Commissioner of the Social Security Administration.

Along with the COLA, other adjustments effective in January include an increase in the maximum amount of earnings subject to Social Security tax, from $176,100 to $184,500. Beneficiaries can expect to receive notifications about their new benefit amounts starting in early December, either by mail or online through their personal accounts.

The annual COLA is calculated according to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as reported by the Department of Labor. This COLA is crucial for many seniors and disabled citizens, as Social Security is the primary source of income for approximately 40 percent of older Americans.

Despite the adjustment, advocates say many seniors are concerned that the increase will not fully cover their expenses, especially with projected Medicare premium hikes. AARP estimates that rising costs for healthcare and daily living are outpacing the COLA, putting financial pressure on many beneficiaries.

As inflation and healthcare costs continue to rise, many are left questioning if this adjustment is sufficient to support their basic needs amid ongoing economic challenges.