Social Security Announces 2.8 Percent Benefit Increase for 2026; Average Additional $56 per Month

The Social Security Administration has announced that benefits for millions of Americans will see a 2.8 percent increase in 2026. This adjustment, known as the cost-of-living adjustment (COLA), will affect Old-Age, Survivors, and Disability Insurance (OASDI) benefits, as well as Supplemental Security Income (SSI) payments. For Social Security retirement beneficiaries, this change translates to an average increase of approximately $56 per month, effective January 2026.

Nearly 71 million individuals receiving Social Security benefits will experience this 2.8 percent COLA beginning in the new year. Recipients of SSI payments will see their increased payments start sooner, on December 31, 2025. It is important to note that some individuals receive both Social Security benefits and SSI. The annual COLA is determined by the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as calculated by the Department of Labor’s Bureau of Labor Statistics, and is mandated by the Social Security Act. This adjustment aims to ensure that benefits keep pace with economic realities.

In addition to the benefit increase, other adjustments tied to the rise in average wages will also take effect in January 2026. The maximum amount of earnings subject to Social Security taxes is set to rise from $176,100 to $184,500. This means individuals earning above the previous cap will now contribute to Social Security on a larger portion of their income.

The Social Security Administration will begin notifying beneficiaries of their updated benefit amounts by mail in early December 2025. This year, recipients will receive a streamlined, one-page COLA notice designed for clarity and ease of understanding, detailing their new benefit amount and any applicable deductions. Those who have established a “my Social Security” account can access their COLA notices online, which offers a faster and more secure alternative to paper mail.

Information regarding changes to Medicare premiums for 2026 will be available on the Medicare website, http://www.medicare.gov. Medicare enrollees can expect to see their 2026 premium amounts in their “my Social Security” Message Center starting in late November. Those who have not opted for online notifications will receive their Medicare COLA notice by mail in December. Further details on the 2026 COLA and related adjustments can be found on the Social Security Administration’s website at http://www.ssa.gov/cola.

Article by Mel Anara, based upon information from the Social Security Administration