Social Security benefits and Supplemental Security Income (SSI) payments for approximately 75 million Americans will see an increase of 2.8 percent in 2026. Starting in January, the average increase in Social Security retirement benefits will amount to around $56 per month.
Over the past decade, the average cost-of-living adjustment (COLA) has been about 3.1 percent, with a 2.5 percent adjustment recorded in 2025. This upcoming increase will affect nearly 71 million Social Security beneficiaries, while around 7.5 million individuals receiving SSI will start to enjoy the adjusted payments as of December 31, 2025. It is important to note that some recipients may receive both Social Security benefits and SSI.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to ensure that benefits reflect today’s economic realities and continue to provide a foundation of security,” stated Frank J. Bisignano, Commissioner of the Social Security Administration. He emphasized that the COLA plays a crucial role in maintaining the mission of Social Security.
In addition to the COLA increase, other adjustments that take effect in January are linked to wage increases. For instance, the maximum taxable earnings for Social Security will rise from $176,100 to $184,500.
The Social Security Administration will begin notifying recipients about their new benefit amounts through the mail at the beginning of December. Beneficiaries who have created a personal my Social Security account can access their COLA notice online, which is a faster and more secure method than waiting for a letter. To utilize this feature, individuals must establish their my Social Security account by November 19.
As for Medicare changes for 2026, additional information will be made available at the Medicare website. Beneficiaries enrolled in Medicare will receive their updated benefit information through the my Social Security Message Center starting in late November, whereas those without online accounts will receive their COLA notice by mail in December.
The Social Security Act outlines how the COLA is determined, linking it to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as reported by the Bureau of Labor Statistics. For more details regarding the 2026 COLA, individuals can visit the Social Security Administration’s website. This increase promises to provide much-needed financial relief to beneficiaries amidst the evolving economic landscape.