Social Security benefits for millions of Americans are set to increase by 2.8% in 2026, the Social Security Administration (SSA) announced. This adjustment will apply to both Social Security benefits and Supplemental Security Income (SSI) payments. The average increase for Social Security retirement benefits is estimated to be around $56 per month, with the changes scheduled to take effect in January.
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The 2026 cost-of-living adjustment (COLA) is higher than the 2.5% calculated in 2025. Over the last decade, the COLA has averaged about 3.1%, providing some context for this upcoming increase. In addition to the benefit raise, the maximum amount of earnings subject to Social Security tax (taxable maximum) will also see an increase from $176,100 to $184,500. This adjustment aims to keep pace with the rising cost of living.
The SSA’s decision was based on the inflation data from September 2025, which indicated a noticeable uptick in price increases compared to the previous year. Despite initially being scheduled for announcement on Oct. 15, the SSA’s cost-of-living adjustment updates were delayed due to the federal government shutdown. However, Commissioner Frank J. Bisignano assured that Social Security remains committed to ensuring benefits accurately reflect current economic conditions and provide a sense of financial security for recipients.
Beneficiaries can expect to receive notifications about their new benefit amounts by mail starting in early December. Those with a my Social Security account may have the option to view their COLA notice online even earlier. Setting up alerts through the online system can ensure timely updates on any changes to benefits. Recipients interested in accessing their notices electronically are encouraged to create a my Social Security account by November 19 to view the COLA information promptly.
In a statement, Commissioner Frank J. Bisignano emphasized the importance of the annual cost-of-living adjustment as a way to uphold the promise of Social Security and deliver financial stability to millions of Americans. The SSA’s commitment to providing timely and accurate benefit adjustments underscores its core mission of supporting individuals in retirement or facing disability. Stay informed by signing up for PEOPLE’s free daily newsletter to receive the latest updates on various topics, from celebrity news to compelling human interest stories.
The increase in Social Security benefits not only reflects the changing economic landscape but also aims to mitigate the impact of inflation on retirees and individuals reliant on these payments. It serves as a vital component of the support system that Social Security provides, demonstrating its adaptability to evolving financial challenges. As the cost of living continues to fluctuate, adjustments like these play a crucial role in ensuring the stability and well-being of those who depend on Social Security benefits.
As we await the implementation of these benefit adjustments in January 2026, the focus remains on enabling individuals to meet their financial needs and maintain a sense of security in an ever-changing world. The annual cost-of-living adjustment serves as a reminder of the enduring commitment to supporting recipients and upholding the principles of Social Security. By keeping pace with economic realities, these adjustments aim to provide a foundation of stability for millions of Americans as they navigate retirement and disability challenges.