The Social Security Administration announced a 2.8 percent cost-of-living adjustment (COLA) for 2026, affecting 75 million Americans receiving Social Security benefits and Supplemental Security Income (SSI) payments. The increase will boost the average monthly retirement benefit by about $56 starting in January 2026, according to the SSA’s October 2025 announcement.
Nearly 71 million Social Security beneficiaries will see the 2.8 percent increase beginning in January 2026, while about 7.5 million SSI recipients will receive increased payments starting December 31, 2025. The social security administration calculates the annual COLA by comparing inflation data from the third quarter of the current year to the third quarter of the previous year, using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure tracked by the Department of Labor’s Bureau of Labor Statistics.
The 2.8 percent adjustment represents a slight increase from 2025’s 2.5 percent COLA. Over the past decade, the average COLA increase has been about 3.1 percent, meaning this year’s adjustment sits slightly below the long-term average. However, recent years have seen more dramatic swings: 2024 delivered 3.2 percent, 2023 brought a record 8.7 percent, and 2022 provided 5.9 percent, reflecting volatile inflation patterns across those years.
Social Security Commissioner Frank J. Bisignano emphasized the importance of the annual adjustment, stating that “the cost-of-living adjustment is a vital part of how Social Security delivers on its mission” and that it ensures “benefits reflect today’s economic realities.” The COLA mechanism, established by the Social Security Act, is designed to help beneficiaries maintain their purchasing power as prices rise. Beneficiaries will receive simplified COLA notices by mail starting in early December 2025, though those with mySocial Security accounts can view their notices online and set up text or email alerts.
Sources
- Social Security Administration — October 24, 2025 press release announcing the 2.8 percent COLA for 2026, beneficiary counts, average monthly increase amount, and how COLA is calculated using CPI-W
- AARP — Historical COLA data showing 3.2 percent in 2024 and 2.5 percent in 2025
- Empower — Recent COLA history including 8.7 percent in 2023 and 5.9 percent in 2022
- CNBC — Confirmation of the $56 average monthly increase and 75 million beneficiary figure
