"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."
"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. The agency will notify recipients of their new benefit amount by mail in early December."
Social Security benefits will increase by 2.8% in 2026, yielding an average monthly boost of more than $56 for retirees. The increase applies to nearly 71 million Social Security recipients beginning in January, and nearly 7.5 million Supplemental Security Income recipients will see higher payments starting Dec. 31. The COLA is funded by 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 increase reflects moderating inflation. Notices will arrive by mail in early December. Some seniors say the adjustment is insufficient given rising rent, auto insurance and food costs.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]