Social Security COLA 2026: 2.8% Raise, $56 More Per Month for 75 Million

About 75 million Americans on Social Security will see a 2.8% cost-of-living adjustment (COLA) in 2026. The increase shows up in checks starting January 2026 and pushes the average monthly benefit to roughly $2,071—about $56 more per month than in 2025.

COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration (SSA) uses the average CPI-W from the third quarter of the current year compared with the third quarter of the prior year to set the next year's COLA. The 2.8% figure reflects slower inflation than the 3.2% adjustment for 2025.

How the 2026 COLA Is Applied

Retirement and disability beneficiaries do not need to apply for the increase. The SSA applies the new rate automatically. The first increased payment is the January 2026 benefit, which is typically paid in February 2026 depending on birth date and payment schedule. Beneficiaries can confirm the new amount in their mySocial Security account; COLA notices were available online starting in early December 2025.

What the 2.8% Increase Means in Dollars

For someone receiving $1,500 per month in 2025, the 2.8% COLA adds $42 per month in 2026. At $2,000 per month, the increase is about $56; at $2,500, about $70. Because the percentage is the same for everyone, dollar gains are larger for those with higher benefits. Supplemental Security Income (SSI) recipients also receive the same 2.8% COLA, with the new SSI rates effective for payments made in December 2025.

Why COLA Matters for Retirees

Social Security is the main income source for many retirees. COLAs are meant to keep benefits from losing buying power when prices rise. Critics have long argued that CPI-W underweights healthcare and housing costs that matter more to older adults. Congress has considered switching to a different index, such as the CPI-E (Consumer Price Index for the Elderly), but no change has been enacted.

What to Watch in 2026

Medicare Part B premiums are announced separately and are often deducted directly from Social Security. When Part B goes up, the net gain from COLA can be smaller than the headline percentage. The Centers for Medicare & Medicaid Services typically release the following year's Part B premium in the fall, so 2026 Part B amounts were set in late 2025. Beneficiaries should check their first 2026 notice to see their net benefit after Medicare and any other withholdings.