Key takeaways

• The IRS announced Social Security benefits and Supplemental Security Income (SSI) payments will increase 2.8% in 2026
• Over the last decade the COLA increase has averaged about 3.1%. In 2025, the increase was 2.5%
• The standard Medicare Part B premium is projected to rise by 11.6%, which may reduce the net monthly increase many retirees see in their Social Security checks

Social Security changes are coming in 2026 with the average beneficiary set to see a bump of over $50 in their monthly paycheck.

How much will COLA increase in 2026?

The average monthly check for the nation’s 71 million Social Security beneficiaries will increase 2.8% starting in January 2026. That’s an increase of $56 a month, on average. The 7.5 million Americans who receive Supplemental Security Income (SSI), a program for low-income and disabled people, will see their first COLA increase on December 31, 2025.¹

But for some retirees, the modest increase is lower than expected. In September, 73% of seniors surveyed told the American Association of Retired Persons (AARP) they’d need an annual COLA of 5% to keep up with rising costs.²

Cost of living increase 2025 vs 2026: What’s changed for retirees

The table below compares the 2025 and 2026 Social Security cost-of-living adjustments (COLA). According to the Social Security Administration, the average monthly benefit for retired workers was $2,008.31 in August 2025.³ Applying the 2.8% COLA for 2026 brings that figure to roughly $2,064.

Who is eligible for Social Security COLA?

The COLA applies to people who get Social Security, including retirees, people with disabilities, survivors of deceased workers, and spouses or dependents who receive benefits based on someone else’s record. It also applies to SSI recipients.⁴

Social security maximum taxable earnings 2026

In 2026, the maximum amount of earnings subject to Social Security tax is $184,500, up from $176,100 in 2025.⁵ The IRS raises the maximum amount of earnings subject to Social Security taxes each year to keep pace with increases in average wages.

Read more: Is Social Security taxable?

Why is Social Security going up?

When costs heat up, COLAs usually do as well. In recent years, COLAs have varied significantly: A record 8.7% increase in 2023, followed by more modest adjustments of 3.2% in 2024 and 2.5% in 2025. The largest jump in history occurred back in 1980 when the COLA skyrocketed to 14.3%.⁶

Every year since 1975, Social Security benefits have been reviewed and recalculated to help keep pace with inflation. It’s a way to protect the purchasing power of payments so they don’t lose their strength when things become more expensive. But if there’s no inflation, like in 2009, 2010, and 2015, there’s no COLA.⁷

The Social Security Administration (SSA) analyzes data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to set the annual COLA. In general, the CPI-W measures the average cost changes for a variety of common products and services, like food, clothing, and transportation. If there is at least a 0.1% increase when comparing third-quarter numbers with the same period from the previous year (July, August, and September), Social Security benefits will typically see an increase.⁸

Will I get more from Social Security in 2026?

It depends. Seventy percent of people elect to have their monthly premiums for Medicare Part B — medical insurance that helps pay for doctor visits and medical equipment — automatically deducted from their Social Security checks.⁹ If you fall into this group, there is a chance a Medicare rate hike could offset any extra you receive from a cost-of-living adjustment.

The standard monthly premium for Medicare Part B is projected to increase to $206.50 in 2026, up from $185 in 2025. That $21.50 difference amounts to a 11.6% increase year-over-year.¹⁰ High-income earners may pay additional monthly costs, known as income-related monthly adjustment amounts, or IRMAAs.¹¹

Will a bigger benefit be enough to fund my retirement?

Around 1 in 5 U.S. residents receive Social Security benefits, though Social Security was never designed to be a person’s sole or most prominent source of retirement income.^12,13 Many financial professionals suggest that an amount of around 80% of your annual income can cover your cost of living in retirement, and Social Security could help with a portion of that because it’s based on your total lifetime earnings. It’s a good idea to consider contributing to a 401(k) plan, an IRA, or another tax-advantaged type of investment account to help grow your nest egg.  

What if I don’t plan on collecting Social Security in 2026?

You can begin collecting Social Security checks as early as age 62. But if you’re not ready to file in 2025, you may get the best of both worlds. Not only will your benefits be higher the longer you wait to claim, but you’ll also be able to benefit from next year’s estimated COLA increase. That’s because inflation adjustments are automatically factored into future payments.¹⁴

Read more: More Americans are taking Social Security early — is it the right move?

How can I check my Social Security status?

You can check your Social Security status online by creating a My Social Security account online at the Social Security Administration website. With an account, you’ll be able to view your profile page, monitor the status of an application, view your earnings history, and see estimated benefits.