Social Security Plans 2.8% COLA Boost for 75 Million in 2026

The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026, boosting benefits by about $56 a month on average for roughly 75 million Social Security and Supplemental Security Income recipients, with many seeing increased payments beginning Dec. 31, 2025 and January 2026. The announcement was delayed by the federal government shutdown after the Bureau of Labor Statistics’ September CPI release — the final input for the COLA — was postponed but then issued, allowing the SSA to finalize the increase. The taxable maximum for Social Security payroll taxes is expected to rise to $184,500 in 2026, and while the 2.8% raise is higher than last year’s 2.5% increase, advocates and analysts warn it may not fully cover rising housing, utility and healthcare costs for many beneficiaries. SSA Commissioner Frank J. Bisignano and groups like AARP framed the COLA as part of keeping Social Security’s promise, while policy experts such as the Bipartisan Policy Center noted that annual COLAs cannot solve broader funding and affordability challenges. The SSA will begin mailing COLA notices in early December and beneficiaries with personal accounts can view notices online if set up by mid-November.