Social Security 2026 COLA set at 2.8% with average $56 monthly increase

The Social Security cost-of-living adjustment for 2026 will be 2.8 percent, yielding an average increase of more than $56 per month for retirees, agency officials said Friday. The raise will take effect in January for nearly 71 million Social Security beneficiaries, while higher payments for about 7.5 million people receiving Supplemental Security Income will begin on Dec. 31. The announcement had been delayed by last week’s federal government shutdown.

The increase, known as the COLA, reflects moderating inflation after larger adjustments in recent years. Beneficiaries received a 2.5 percent boost for 2025 and a 3.2 percent increase for 2024, following an unusually large 8.7 percent rise in 2023 prompted by high inflation. The COLA is financed by payroll taxes collected from workers and employers up to an annual wage cap, which is scheduled to rise to $184,500 in 2026 from $176,100 in 2025.

Social Security Administration Commissioner Frank Bisignano said in a statement that the annual cost-of-living adjustment is one way the agency works to ensure benefits reflect current economic conditions and continue to provide a foundation of security. Emerson Sprick, director of...