Social Security Announces 2.8% COLA for 2026

The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, raising average monthly retirement benefits by about $56 beginning in January (with Supplemental Security Income increases effective Dec. 31, 2025). The boost will affect roughly 71–75 million Social Security beneficiaries and nearly 7.5 million SSI recipients, and the taxable maximum for Social Security earnings will rise to $184,500 in 2026. The COLA is calculated from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI‑W) for July–September, and this year’s announcement was delayed by the recent federal government shutdown. Analysts and advocacy groups warn the modest increase may not keep pace with rising costs such as health care, and a projected jump in Medicare Part B premiums (and potential Part D increases) could consume a large share of the raise for many beneficiaries. The SSA will notify beneficiaries by mailed letters and online notices, and observers note that annual COLAs cannot resolve broader retirement shortfalls amid organizational turmoil and policy uncertainty at the agency.