The cost-of-living adjustment (COLA) is based on inflation data.
Social Security benefits will increase by 2.8 percent in 2026, federal officials have announced, with the inflation-related adjustment boosting payments for an estimated 75 million Americans.
The 2.8 percent cost-of-living adjustment—known as COLA—was announced by the Social Security Administration (SSA) on Oct. 24, the same day that government data on inflation was released. It affects both Social Security benefits and Supplemental Security Income (SSI) payments, ensuring that payments to retirees, people with disabilities, and low-income beneficiaries reflect rising costs.
On average, Social Security retirement benefits will rise by about $56 per month starting in January 2026, the SSA said. Nearly 71 million Social Security beneficiaries will see the higher payments beginning in January, while about 7.5 million SSI recipients will receive their increase on Dec. 31, 2025.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” SSA Commissioner Frank Bisignano said in a statement.
“The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
Over the past decade, COLA increases have averaged about 3.1 percent, while the 2025 adjustment was 2.5 percent. The new figure is slightly above the 2.7 percent that had been forecast by The Senior Citizens League, a nonpartisan advocacy group that issues monthly COLA projections.
The Bureau of Labor Statistics (BLS), which normally releases inflation figures monthly, said earlier this month that it would publish September’s Consumer Price Index (CPI) data on Oct. 24 so that the SSA could “meet statutory deadlines necessary to ensure the accurate and timely payment of benefits.” The release came amid a partial government shutdown that has suspended most federal data reporting, though officials said that Social Security payments will continue uninterrupted.
The 2026 COLA is tied to the CPI-W—the consumer price index for urban wage earners and clerical workers—covering inflation for July, August, and September. Government data released on Oct. 24 showed that CPI-W rose by 2.9 percent over the 12 months through September, forming the basis for the 2.8 percent benefit increase.
Advocates for senior Americans say the annual boost still falls short because it’s tied to an index for working households, not retirees. They argue that switching from the CPI-W to the CPI-E, a separate inflation gauge designed to track spending by Americans aged 62 and older, would better capture seniors’ real costs, especially for health care and housing.
By Tom Ozimek
