The Social Security Administration recently announced that the cost-of-living adjustment (COLA) for 2026 will be 2.8%. This adjustment will lead to an average increase of about $56 per month in Social Security retirement benefits, effective January 2026. The COLA is crucial as it ensures that both Social Security and Supplemental Security Income benefits keep pace with inflation, helping approximately 75 million Americans who depend on these payments.
For many beneficiaries, especially those who rely heavily on these payments for essential expenses, the increase may not significantly alleviate the burden of rising prices. According to the AARP, around 40% of older Americans count on Social Security as their primary source of income. The 2026 COLA aligns closely with expert forecasts, which had projected an increase between 2.7% and 2.8%. In comparison, the COLA was 2.5% in 2025 and has averaged 2.6% over the past 20 years, as reported by The Senior Citizens League.
Frank J. Bisignano, Commissioner of the Social Security Administration, emphasized the importance of the annual COLA, stating, "Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to ensure benefits reflect today's economic realities and continue to provide a foundation of security."
Beneficiaries looking to estimate their 2026 benefit check can easily do so by multiplying their current monthly benefit amount by 2.8% (or 0.028). It is important to note that several factors can influence the final monthly payment, including the upcoming Medicare Part B premiums and any elected tax withholdings. Projections indicate that the standard monthly Part B premium may rise by 11.6%, increasing from $185 to $206.50 per month.
High-income earners may also incur additional costs known as income-related monthly adjustment amounts (IRMAAs). Furthermore, beneficiaries can choose to have federal income tax withheld from their benefits at fixed rates of 7%, 10%, 12%, or 22%, depending on their financial situation. Individuals must pay federal income taxes on their benefits if their combined income exceeds $25,000 for single filers or $32,000 for married couples filing jointly.
The Social Security Administration will begin notifying beneficiaries of their new payment amounts via mail in early December. Beneficiaries also have the option to receive these notifications online by creating or logging into their My Social Security account and opting out of paper notices by November 19.
The Social Security COLA is calculated based on a subset of the consumer price index, specifically referred to as the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The COLA reflects the percentage increase in the CPI-W from the third quarter of the previous year to the third quarter of the current year. In 2023, the COLA reached its highest level in four decades at 8.7% due to inflation spikes post-COVID-19. However, it has normalized in recent years, showing a 3.2% increase in 2024 followed by 2.5% in 2025.
For nearly 71 million Social Security beneficiaries, the payments reflecting the 2026 COLA will commence in January. Payment dates are determined by the beneficiary's birth date. Those born from the 1st to the 10th of the month will receive their checks on the second Wednesday, January 14, 2026. Beneficiaries born between the 11th and 20th will receive theirs on the third Wednesday, January 21, 2026, while those born from the 21st to 31st will get their payments on the fourth Wednesday, January 28, 2026. Furthermore, approximately 7.5 million SSI beneficiaries will see their increased payments begin on December 31.
