SSA Announces 2.8% COLA for 2026 Benefits

The Social Security Administration has announced a 2.8 percent cost-of-living adjustment for 2026, increasing average monthly retirement benefits by about $56 starting in January. This adjustment, which applies to nearly 71 million beneficiaries, comes amid ongoing concerns about inflation's impact on seniors' finances, even as lawmakers propose additional temporary relief through a new bill.

The COLA reflects a rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers from the third quarter of 2024 compared to 2023. While the increase exceeds the 2.5 percent adjustment for 2025, it falls below the 10-year average of 3.1 percent. Advocacy groups have criticized the formula for not fully capturing expenses like healthcare and housing that disproportionately affect older adults. "The current formula ignores real costs seniors face," said Shannon Benton, executive vice president of The Senior Citizens League.

Several other changes will take effect in 2026 to adjust for economic conditions. The earnings limit for beneficiaries under full retirement age, currently $23,400 in 2025, will rise to $24,800. Those exceeding this threshold will have $1 in benefits...