"WASHINGTON (AP) - The Social Security Administration's annual cost-of-living adjustment will go up by 2.8% in 2026, translating to an average increase of more than $56 for retirees every month, agency officials said Friday. The benefits increase for nearly 71 million Social Security recipients will go into effect beginning in January. And increased payments to nearly 7.5 million people receiving Supplemental Security Income will begin on Dec. 31. Friday's announcement was meant to be made last week but was delayed because of the federal government shutdown."
"The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary, which is slated to increase to $184,500 in 2026, from $176,100 in 2025. Recipients received a 2.5% cost-of-living boost in 2025 and a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation. The smaller increase for 2026 reflects moderating inflation."
"Linda Deas, an 80-year-old Florence, South Carolina, resident said "it does not match the affordability crisis we are having right now." Deas, a retired information systems network operations specialist, moved to South Carolina from New York in 2022 to be closer to family. She says her monthly rent has increased by $400 in the past two years. She listed other items that have become more expensive for her in the past two years, including auto insurance and food."
Social Security benefits will increase by 2.8% in 2026, producing an average monthly rise of more than $56 for retirees. The increase affects nearly 71 million recipients beginning in January, and Supplemental Security Income payments to nearly 7.5 million people will increase starting Dec. 31. The announcement was delayed by a federal government shutdown. The COLA is financed through payroll taxes and the taxable wage base is set to rise to $184,500 in 2026 from $176,100 in 2025. Recent COLAs were 2.5% in 2025, 3.2% in 2024 and 8.7% in 2023; the smaller 2026 boost reflects moderating inflation. Some seniors report the increase falls short amid rising rents, food and insurance costs.
Read at Boston.com
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