Social Security Announces 2.8% COLA for 2026

The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, with the announcement delayed until Oct. 24 because of the government shutdown and BLS data delays. The increase will raise average monthly benefits by about $55–$56, push average retired-worker payments into the low $2,000s, and raise maximum benefits and other thresholds. Many beneficiaries are likely to see much of that gain offset by a projected 11.6% jump in Medicare Part B premiums to roughly $206.50 per month and other rising costs. Policy changes taking effect in 2026 — the completion of the full-retirement-age phase-in (people born in 1960 or later have an FRA of 67) and higher taxable wage-base and earnings-test thresholds — will affect benefit calculations and make it harder to 'max out' benefits. Advocates and critics say the COLA’s use of the CPI-W understates seniors’ costs and that the 2.8% bump falls short of real-world price pressures.