Social Security and Supplemental Security Income (SSI) payments are set for a notable increase in 2026, benefiting approximately 75 million Americans. This announcement was made by the Social Security Administration (SSA) on Friday, detailing a cost-of-living adjustment (COLA) of 2.8 percent. This adjustment will translate to an average increase of around $56 per month for retirement benefits, as stated in the SSA's news release.
Nearly 71 million Social Security beneficiaries will experience this COLA beginning in January 2026, while close to 7.5 million SSI recipients can expect increased payments starting December 31, 2025. The COLA is implemented to ensure that benefit payments keep pace with inflation and the rising cost of living. SSA Commissioner Frank J. Bisignano emphasized, “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.”
Alongside the COLA, the SSA has announced other important adjustments. The maximum taxable earnings for Social Security will increase from $176,100 in 2025 to $184,500 in 2026. Furthermore, the retirement earnings test exempt amounts will also see a rise, along with thresholds for disability benefits, trial work periods, and SSI federal payment standards.
The SSA will begin mailing out COLA notices in early December. Beneficiaries who have a my Social Security account can conveniently access these notices online. The one-page notice will include personalized benefit amounts and any applicable deductions. Additionally, online account holders have the option to receive text or email alerts when new messages, including the COLA notice, become available.
This increase follows a 2.5 percent COLA in 2025, with the decade-long average adjustment being approximately 3.1 percent. For 2026, the estimated average monthly benefits are projected to be $2,071 for retired workers, $3,208 for aged couples, and $1,919 for aged widow(er)s. SSI recipients are also set to benefit from federal payment standards raised to $994 for individuals and $1,491 for couples.
This COLA adjustment is crucial for ensuring that Social Security and SSI payments remain adequate in the face of rising costs, thereby continuing to support millions of Americans in their financial stability.
