"The Social Security cost-of-living increase will be 2.8% in 2026, which translates to an average increase of $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. 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. The COLA increase was 2.5% in 2025 and 3.2% in 2024. The historically large 8.7% increase in 2023 was brought on by 40-year-high inflation."
Social Security benefits will increase 2.8% in 2026, averaging about $56 more per month for nearly 71 million recipients. Increased payments to nearly 7.5 million Supplemental Security Income beneficiaries will begin Dec. 31. The announcement was delayed by a federal government shutdown. The COLA is financed by payroll taxes and the taxable wage base will rise to $184,500 in 2026 from $176,100 in 2025. Recent COLA rates were 2.5% in 2025, 3.2% in 2024 and a historically large 8.7% in 2023 driven by high inflation. The Social Security Administration has experienced nearly a year of turmoil including mass terminations and uncertain statements about the program's future.
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