Social Security benefits will increase by 2.8 percent for 75 million Americans in 2026, the Social Security Administration announced in October 2025. The cost-of-living adjustment (COLA) translates to an average monthly boost of about $56 for retired workers, raising typical retirement benefits from $2,015 to $2,071 starting in January.
The 2.8 percent COLA applies to both Social Security retirement, disability, and survivor beneficiaries, as well as Supplemental Security Income (SSI) recipients. The increase aims to help beneficiaries keep pace with inflation, a mechanism that has been in place since 1975.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an inflation measure tracked by the U.S. Department of Labor. The 2026 adjustment equals the percentage increase in the average CPI-W from the third quarter of 2024 to the third quarter of 2025. This formula-driven approach means the size of each year’s increase depends entirely on inflation data, not congressional action.
The 2.8 percent increase marks a modest rise compared to recent years. In 2024, beneficiaries received a 3.2 percent COLA, while 2025 brought a 2.5 percent adjustment. Over the past decade, the average COLA has been approximately 2.6 percent, according to the Social Security Administration.
Higher Medicare premiums will partially offset the benefit gains for some retirees. The standard Medicare Part B monthly premium is projected to rise to more than $206 in 2026, up from $185 in 2025. For beneficiaries enrolled in Medicare, the net gain from the Social Security increase may be smaller than the full $56 monthly boost.
The maximum amount of earnings subject to Social Security taxes will increase to $184,500 in 2026, up from $168,600 in 2025. This change affects workers who earn above the threshold and are building future benefits. Additionally, the earnings test for beneficiaries younger than full retirement age will increase to $24,480 per year, while those reaching full retirement age in 2026 will face a limit of $65,160 per year.
Sources
- Social Security Administration — Official press release announcing the 2.8 percent COLA for 2026 and confirmation that 75 million Americans will receive increased benefits
- CNBC — Reported the $56 monthly average increase and details on benefit payment timing
- AARP — Provided COLA history showing 2024 (3.2 percent) and 2025 (2.5 percent) adjustments for comparison
- Bipartisan Policy Center — Explained the CPI-W calculation methodology for the 2026 COLA
- NBC Washington — Confirmed the 2026 maximum benefit amount and Medicare premium projections
