Nearly 71 million Social Security beneficiaries will see their benefits increase by 2.8% beginning in January 2026, translating to an average monthly boost of about $56 for retirees, the Social Security Administration announced in October 2025.
The 2.8% cost-of-living adjustment (COLA) is slightly higher than the 2.5% increase beneficiaries received in 2025, reflecting moderating inflation after years of steeper gains. The COLA is determined by law through a formula tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure tracked by the U.S. Bureau of Labor Statistics.
The adjustment represents a marked decline from the exceptional increases of recent years. In 2023, beneficiaries saw an 8.7% COLA—the largest increase in four decades—followed by a 3.2% adjustment in 2024. Over the past decade, the average COLA has been about 3.1%, according to the Social Security Administration.
The CPI-W is calculated by comparing the average inflation rate during the third quarter (July, August, and September) of one year to the same period in the previous year. For 2026, the third-quarter average CPI-W was 2.8% higher than the third quarter of 2025, producing the 2.8% COLA. This automatic adjustment mechanism ensures that Social Security benefits keep pace with inflation and help maintain the purchasing power of retirees and other beneficiaries.
Supplemental Security Income (SSI) recipients—a separate group of about 7.5 million people who receive need-based federal assistance—will begin receiving their increased payments on December 31, 2025, slightly earlier than the January 2026 start date for Social Security beneficiaries. Some individuals receive both Social Security benefits and SSI.
The Social Security Administration began notifying beneficiaries of their new benefit amounts by mail in early December 2025. Beneficiaries with mySocial Security accounts can view their COLA notices online, which the agency describes as a simpler, one-page format using plain language and providing exact dollar amounts and deduction details.
The 2026 adjustment also affects the maximum amount of earnings subject to Social Security tax. The taxable maximum is set to increase to $184,500 from $176,100 in 2025, reflecting growth in average wages across the workforce.
Sources
- Social Security Administration — official announcement of the 2.8% COLA for 2026 affecting nearly 71 million beneficiaries, the $56 average monthly increase, and the CPI-W calculation method
- AARP — historical COLA data showing 2.5% for 2025, 3.2% for 2024, and 8.7% for 2023, plus the 10-year average of 3.1%
- CBS News — comparison of 2026 COLA to historical rates, including the 8.7% peak in 2023
