Social Security Benefits to Rise 2.8% in 2026 Under Cost-of-Living Increase

Key Points

The 2026 Social Security cost-of-living adjustment is 2.8%. The average retired worker is projected to get about $56 more per month, but higher Medicare premiums, taxes and work-related withholding will reduce what many people actually keep.

• Benefits for roughly 75 million Americans, including retirees, people with disabilities, survivors and SSI recipients, will increase by 2.8% in 2026, according to the Social Security Administration.
• The typical retired worker’s monthly benefit is projected to rise from about $2,015 to about $2,071 in January 2026, a gain of about $56, according to AARP’s COLA breakdown.
• SSI reflects the higher amount in the Dec. 31, 2025 payment. Social Security retirement and disability checks reflect it starting in January 2026, according to the Social Security Administration.
• Most households will not feel a full 2.8% raise. Medicare Part B premiums, federal tax withholding and benefit withholding for people who claim early and keep working all reduce the net amount that lands in a bank account. These pressures are described in Medicare cost projections summarized by Investopedia.
• The 2026 COLA is far below the 8.7% increase for 2023 but in line with the recent trend toward smaller adjustments as inflation cools. AARP says 77% of older Americans still feel it is not enough.

Table: Recent Social Security COLA Increases

Figures for 2023 and 2024 are based on official Social Security Administration announcements. 2025 (~2.5%) and 2026 (2.8%) reflect the most recent published COLA estimates and October 2025 SSA guidance.

How Much Will My Check Go Up?

The 2026 COLA is 2.8%, according to the Social Security Administration. That means monthly benefits are scheduled to go up by about 2.8% before deductions.

Below are examples showing how that translates into dollars. These figures match estimates from the Social Security Administration and AARP’s 2026 COLA breakdown:

If someone currently gets $1,000 per month, that benefit would rise to about $1,028 (about $28 more).

If someone currently gets $1,500 per month, that benefit would rise to about $1,542 (about $42 more).

If someone currently gets $2,000 per month, that benefit would rise to about $2,056 (about $56 more).

If someone currently gets $2,500 per month, that benefit would rise to about $2,570 (about $70 more).

The “average retired worker” benefit is projected to move from about $2,015 to about $2,071 in January 2026. That is an increase of about $56 a month.

These are gross numbers. They do not reflect:

• Medicare Part B premiums, which are deducted automatically for most Medicare enrollees
• Federal tax withholding, if the beneficiary chose withholding
• Any temporary withholding under the earnings test for people who claim early and still work

Because of those deductions, the amount that actually lands in a bank account is often lower than the “extra per month” shown here. The Social Security Administration says it will send each beneficiary an updated notice in December and will also post exact 2026 benefit amounts in “My Social Security” online accounts.

When Will the Higher Payment Arrive?

Most Social Security retirement and disability checks will reflect the higher amount in January 2026, according to the Social Security Administration. Payments will still follow the usual staggered schedule tied to the recipient’s birth date.

SSI is earlier. Supplemental Security Income (SSI) is scheduled to reflect the higher amount in the Dec. 31, 2025 payment. That timing is due to how SSI payments line up with the calendar.

Beneficiaries do not need to apply for the increase. The COLA is automatic under federal law. The Social Security Administration says it will also post updated payment amounts in each person’s “My Social Security” account ahead of the first January 2026 deposits.

Why Many People Will Not Feel a Full 2.8% Raise

The COLA is 2.8% on paper. In practice, many households will keep less than that once Medicare premiums, taxes and the earnings test are factored in.

1. Medicare Part B

Most Medicare enrollees have their Part B premium taken directly out of their Social Security check. Financial planners and retirement advisors, citing projections in the Medicare Trustees report, say the standard Part B premium was about $185 a month in 2025 and could be about $206.50 a month in 2026, an increase of roughly $21.50 a month. These projections are summarized by Investopedia and advisers at Mercer Advisors. The Centers for Medicare & Medicaid Services had not yet published the final 2026 standard premium when the COLA was announced, so $206.50 is still a projection.

If a retired worker’s Social Security check goes up by about $56, and Medicare Part B alone costs about $21.50 more each month, the raise that household actually keeps may be closer to $34.50.

2. Taxes and Withholding

Some beneficiaries ask Social Security to withhold federal income tax from each check. When the gross benefit goes up, the withholding can go up too.

Social Security benefits can also become partly taxable once “combined income”, other income plus part of Social Security, crosses certain federal thresholds. That means a bigger gross benefit can trigger slightly higher tax and shrink the net gain, as explained by Kiplinger.

3. The Earnings Limit

People who start collecting Social Security before full retirement age can keep working, but they face an earnings limit. Above that limit, Social Security temporarily withholds part of their monthly benefit.

For 2026, the earnings limit for someone who is under full retirement age the entire year is expected to be $24,480, and the agency will hold back $1 in benefits for every $2 earned above $24,480, according to Social Security guidance.

For someone who will reach full retirement age in 2026, the limit is higher at $65,160. In that case, Social Security will hold back $1 for every $3 earned above $65,160 until the month that person hits full retirement age. After a person reaches full retirement age, the agency does not apply an earnings limit. The Social Security Administration says money that is held back under this test is not lost permanently; benefits are later adjusted.

Table 2: Earnings Limit Test Snapshot for 2026

What Is the COLA and Why Did This Happen?

The Social Security Administration formally announced on Oct. 24, 2025 that monthly Social Security and SSI benefits will rise by 2.8% in 2026. The announcement came slightly later than usual because some of the inflation data used in the formula was delayed during the government shutdown.

The agency describes the COLA as a built-in protection to keep benefits from losing purchasing power as prices rise for essentials like food, housing, transportation and utilities.

The COLA applies to retired workers, people getting Social Security Disability Insurance, surviving spouses and children, and SSI recipients with very low income and limited assets. By SSA’s estimate, this single adjustment reaches roughly 75 million people nationwide.

For the average retired worker, the change is worth about $56 more per month, which moves the typical benefit from around $2,015 to around $2,071 beginning in January 2026. SSI recipients see the higher amount in the Dec. 31, 2025 payment because SSI pays on a different schedule at month-end.

This annual adjustment is not Congress “voting seniors a raise.” Since the mid-1970s, the Social Security Act has required an automatic cost-of-living increase every year.

How Do They Calculate the COLA?

Social Security pegs the COLA to a federal inflation index called the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The agency averages CPI-W for July, August and September, then compares that three-month average with the same period a year earlier. The percentage change becomes the COLA.

For 2026, that math produced a 2.8% COLA, according to the Social Security Administration.

Senior advocates argue CPI-W does not reflect what older Americans actually buy. CPI-W is based on spending patterns for working households. Retirees tend to spend a larger share of their income on rent, utilities and out-of-pocket medical care, all costs that have risen faster than overall headline inflation. In October 2025, AARP told Investopedia that 77% of older Americans say the 2.8% COLA still is not enough to match their actual bills.

Some advocacy groups want Congress to adopt a senior-focused index, sometimes called CPI-E, that would give more weight to healthcare and housing for older adults. Congress has not adopted that change.

Does the COLA Keep Up with Prices?

After an 8.7% increase for 2023 and a 3.2% raise for 2024, the new 2.8% COLA for 2026 lands at a time when many older Americans say their rent, utilities and Medicare costs have not eased.

The Associated Press has reported retirees describing rent rising by about $400 over two years, grocery bills climbing almost every week, and winter heating and electric costs eating a bigger share of fixed income. Many also worry about prescription costs and Medicare out-of-pocket charges.

The Medicare Trustees project that the standard Medicare Part B premium could move from about $185 a month in 2025 to about $206.50 a month in 2026, meaning retirees could pay more for basic doctor coverage at the same time they are told they are “getting a raise,” according to projections summarized by Investopedia and guidance from Mercer Advisors.

Table 3: What About $56 More per Month Really Buys

That extra $56 usually does not cover rent, dental work, hearing aids or eyeglasses. That gap is why AARP says the raise “helps” but is not enough, and why retirees interviewed by the Associated Press say they still feel behind on housing and medical costs.

Can Social Security Afford These Raises?

Social Security is funded mainly by payroll taxes. Workers and employers each pay 6.2% of wages into the system, up to an annual wage cap. That cap is scheduled to rise from $176,100 in 2025 to $184,500 in 2026, so high earners will pay that tax on more of their income, according to the Social Security Administration.

Even with that higher cap, the system is under stress. The Social Security Trustees and major outlets such as the Associated Press have reported that the main retirement trust fund may not be able to pay full benefits by about 2034. If Congress does nothing, Social Security would still send checks, but the program would only be able to cover roughly 75% to 80% of what is currently promised. That works out to an across-the-board cut of about 20% for future retirees after that point.

Lawmakers are divided over the fix. Democratic proposals generally focus on making higher earners pay more, including lifting or eliminating the wage cap so more of high salaries is taxed for Social Security. Republican proposals have tended to emphasize slowing the growth of future benefits for higher-income retirees rather than raising payroll taxes. Some hybrid plans blend both ideas, aiming to protect typical middle-income retirees.

This long-term solvency fight does not change anyone’s January 2026 payment. Retirees will still receive the 2.8% COLA. The concern is what happens in the early 2030s if Congress does not act.

Check New Number and Plan Your Budget

Step 1. Confirm your 2026 benefit.
The Social Security Administration says it will post each person’s exact 2026 monthly benefit, including the 2.8% COLA, in that person’s “My Social Security” online account in late November. It will also mail paper notices in December. People who want early online access need to have their account set up and allow electronic notices.

Step 2. Focus on what actually lands in the account.
The number that matters is the net deposit after Medicare Part B premiums and any federal tax withholding. If the standard Part B premium moves from about $185 in 2025 to about $206.50 in 2026, roughly $21.50 more a month, that alone can absorb a large share of the COLA, according to projections summarized by Investopedia and guidance from Mercer Advisors.

Step 3. List must-pay bills.
Put rent or mortgage, utilities, medication, groceries, phone and internet in one column. Ask: did the extra ~$56 a month cover even one of those year-over-year increases, or did costs still outrun the raise? AARP says most older Americans report that housing, food and medical costs have outpaced the COLA.

Step 4. If you are still working, know the earnings limit.
For 2026, someone under full retirement age all year can earn up to $24,480 from work before Social Security starts to hold back part of their benefit. Above that, the agency holds back $1 in benefits for every $2 in wages over $24,480. For someone who reaches full retirement age in 2026, the higher limit is $65,160, and Social Security will hold back $1 for every $3 earned above $65,160 until the month that person hits full retirement age. After full retirement age, there is no earnings limit of this kind. The Social Security Administration says withheld benefits are later adjusted, not lost.

Hidden and Recurring Costs That Eat the Raise

• Medicare Part B premium increases that can take more than $20 a month out of a retiree’s check in 2026, based on Medicare Trustees projections summarized by Investopedia.
• Winter utility bills that can jump by $50+ in one month, according to retirees interviewed by the Associated Press.
• Dental work, eyeglasses and hearing aids that Medicare does not fully cover, which can mean hundreds of dollars at once, according to retirement cost guidance summarized by Investopedia.
• Home safety fixes, mobility devices or part-time in-home help that let older adults avoid assisted living but add real cost. The Associated Press has reported seniors paying out of pocket to stay in their homes.

Answers to Common Questions

Do I have to apply to get the COLA?
No. The 2.8% increase is automatic. The Social Security Administration says nearly 71 million beneficiaries will see it in their January 2026 payments, and about 7.5 million SSI recipients will get the higher amount in the Dec. 31, 2025 payment.

Why did my deposit go up less than 2.8%?
Because the 2.8% is the gross increase. Medicare Part B is projected to cost more (potentially moving from about $185 in 2025 to about $206.50 in 2026). Taxes or earnings-limit withholding can also reduce what actually lands in the account.

Will this push me into a higher tax bracket?
It may increase how much of your Social Security is taxable if you also have wages, pension income or retirement withdrawals. That is because of how “combined income” works for Social Security taxation, as explained by Kiplinger.

Is Social Security running out of money right now?
No. Retirees will still receive the 2.8% COLA in 2026. But the main trust fund may only be able to cover about 75% to 80% of scheduled benefits by around 2034 if Congress does nothing, according to the Social Security Trustees’ outlook reported by the Associated Press.

How can I see my new 2026 number?
Log in to your “My Social Security” account. The Social Security Administration says updated COLA notices will appear there in late November, and a paper letter with your new 2026 monthly amount will follow in December.