On Friday, October 24, the Social Security Administration (SSA) of the United States announced that the Cost of Living Adjustment (COLA) for Social Security benefits in 2026 will increase by 2.8%, effective from January next year. Approximately 75 million people receiving Social Security Benefits (Social Security Benefits, referred to as social security) and Supplemental Security Income (SSI) will benefit from this adjustment.
According to the agency’s estimates, retired beneficiaries next year can expect an average increase of around $56 per month. This adjustment aims to help beneficiaries cope with inflation, ensuring that social security benefits keep pace with the cost of living.
Frank J. Bisignano, Commissioner of Social Security Administration, stated on the official website, “Social security is a commitment, and the annual cost-of-living adjustment is a way to ensure the continuation of this commitment. Our goal is to have benefits reflect the current economic reality and continue to provide a stable foundation for people’s lives.”
The 2.8% increase aligns with experts’ predictions ranging from 2.7% to 2.8%, slightly higher than the average adjustment of 2.6% over the past 20 years. The increase in 2025 was 2.5%.
However, for seniors who rely primarily on social security as their main source of income, this increase may still not completely offset the rising cost of living pressures.
The American Association of Retired Persons (AARP) reported that about 40% of American elderly people rely mainly on social security to sustain their livelihood.
Beneficiaries can estimate the amount of the increase after adjustment next year by multiplying their current monthly social security benefits by 2.8%. However, the actual amount received will be influenced by other factors, including Medicare Part B premiums and tax withholding.
According to forecasts from Medicare trustees, standard premiums for Part B may increase by 11.6%, equating to $21.50 per month (rising from $185 to $206.50). High-income earners may need to pay an additional monthly fee known as the Income-Related Monthly Adjustment Amount (IRMAA).
Beneficiaries who choose to have federal income tax withheld can select from four different percentages: 7%, 10%, 12%, or 22%. Social security benefits will be taxed when an individual’s total annual income exceeds $25,000 or when married couples filing jointly have a total annual income exceeding $32,000.
The Social Security Administration will begin mailing adjusted payment notices starting in early December. Beneficiaries can log in to their “My Social Security” account before November 19 to make changes to their settings and opt for electronic notifications instead of paper notices.
COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing the price changes between the third quarter of the current year and the third quarter of the previous year.
In 2023, due to inflation caused by the COVID-19 pandemic, COLA was set at an increase of 8.7%, reaching the highest level in forty years. COLA in the subsequent years has been closer to the historical average, growing by 3.2% in 2024 and 2.5% in 2025.
For nearly 71 million beneficiaries of social security benefits, the increased cost of living for 2026 will begin distribution in January.
The distribution date is determined by the birthdate, and the payout schedule is as follows:
– Birthdays from the 1st to the 10th: Second Wednesday of each month (January 14th)
– Birthdays from the 11th to the 20th: Third Wednesday of each month (January 21st)
– Birthdays from the 21st to the 31st: Fourth Wednesday of each month (January 28th)
For those receiving both social security benefits and Supplemental Security Income (SSI), social security benefits will be disbursed on the 3rd of each month, while SSI will be paid on the 1st of each month.