Annual Cost-of-Living Adjustment Brings Average $56 Monthly Increase for Retirees

NORTH CAROLINA —- The Social Security Administration announced today that approximately 75 million Americans will see their Social Security benefits increase by 2.8 percent in 2026, marking the annual cost-of-living adjustment designed to help beneficiaries keep pace with inflation.

The adjustment will affect recipients of Old-Age, Survivors, and Disability Insurance (OASDI) as well as Supplemental Security Income (SSI) payments. For the average Social Security retirement beneficiary, this translates to an increase of approximately $56 per month beginning in January 2026.

COLA Reflects Economic Conditions

“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 Social Security Administration Commissioner Frank J. Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

The 2.8 percent increase represents a modest uptick from the 2.5 percent COLA applied in 2025. Over the past decade, the cost-of-living adjustment has averaged approximately 3.1 percent annually, reflecting varying economic conditions and inflation rates during that period.

Implementation Timeline

Nearly 71 million Social Security beneficiaries will begin receiving the increased payments in January 2026. An additional 7.5 million people receiving SSI will see their increased payments starting December 31, 2025. Some individuals receive both types of benefits and will see adjustments to both payment streams.

The COLA is calculated according to provisions in the Social Security Act, which ties the annual adjustment to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as determined by the Department of Labor’s Bureau of Labor Statistics.

Taxable Maximum Also Increasing

In addition to benefit increases, other adjustments taking effect in January are based on increases in average wages. The maximum amount of earnings subject to Social Security tax, known as the taxable maximum, is scheduled to increase to $184,500 in 2026, up from $176,100 in 2025.

This change means higher-income workers will pay Social Security taxes on a larger portion of their earnings, which helps fund the program for current and future beneficiaries.

Notification Process Streamlined

The Social Security Administration will begin notifying beneficiaries about their new benefit amounts by mail starting in early December 2025. Following last year’s format, recipients will receive a simplified, one-page COLA notice using plain and personalized language that provides exact dates and dollar amounts of an individual’s new benefit amount and any deductions.

Digital Access Encouraged

Individuals with my Social Security accounts can view their COLA notices online, offering a secure, convenient, and faster alternative to receiving a letter in the mail. Account holders can set up text or email alerts to receive notifications when they have a new message, such as their COLA notice.

To receive a COLA notice online, individuals must create or sign in to their personal my Social Security account and opt out of paper notices by November 19, 2025. The online account also provides access to additional services, including requesting a replacement Social Security card, viewing claim status and benefits, and accessing SSA-1099 tax forms.

Those who have not opted to receive messages online will receive their COLA notice by mail in December.

Medicare Information Available Separately

For beneficiaries enrolled in Medicare, information about Medicare changes for 2026, including premium amounts, will be available through www.medicare.gov. Medicare enrollees can view their 2026 premium amounts via the my Social Security Message Center starting in late November.

The coordination between Social Security and Medicare is important for many beneficiaries, as Medicare Part B premiums are often deducted directly from Social Security payments.

Additional Resources

For more information about the 2026 cost-of-living adjustment and other automatic adjustments, beneficiaries can visit www.ssa.gov/cola. A comprehensive COLA 2026 Fact Sheet is available that provides an easy-to-understand overview of all the various automatic adjustments for the coming year.

Additional information about Social Security’s services is available at www.ssa.gov, where beneficiaries can also create their my Social Security accounts to manage their benefits digitally.