Advertising Disclosure

Social Security benefits will rise 2.8% in 2026

The average benefit will increase by $56

Updated:

Avatar photo
By:
Avatar photo

Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
getty-images-unsplash

Photo by Getty Images on Unsplash

Key Insights

  • Social Security benefits will rise 2.8% in 2026, affecting more than 75 million Americans.
  • The average retirement benefit increases by about $56 per month beginning in January.
  • The taxable maximum for Social Security will climb to $184,500, up from $176,100.

In an announcement delayed by the federal government shutdown, the Social Security Administration said benefits for millions of Americans will increase by 2.8% in 2026, marking a modest rise aimed at keeping pace with inflation and higher living costs. 

The adjustment applies to Old-Age, Survivors, and Disability Insurance (OASDI) as well as Supplemental Security Income (SSI) payments.

Beginning January 2026, Social Security beneficiaries will see an average monthly increase of about $56. The SSA estimates that nearly 71 million people receiving Social Security will benefit from the cost-of-living adjustment (COLA), while an additional 7.5 million SSI recipients will see increased payments starting December 31, 2025. Some individuals receive both Social Security and SSI benefits.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities,” said Social Security Commissioner Frank J. Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

The upcoming 2.8% increase follows a 2.5% COLA in 2025 and slightly trails the 10-year average of 3.1%. The adjustment is calculated automatically under the Social Security Act, which ties annual COLAs to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured by the Bureau of Labor Statistics.

Alongside the benefit increase, the maximum taxable earnings – the amount of income subject to Social Security taxes – will rise to $184,500, up from $176,100 in 2025. This adjustment reflects growth in average wages nationwide.

Beneficiaries will begin receiving notifications of their new benefit amounts by early December 2025. As in previous years, the SSA will send a streamlined one-page notice detailing the updated payment amount, deductions, and effective dates.

Individuals with a MySocialSecurity account can access their notices online for faster delivery and additional features. Users can also opt in for text or email alerts about new messages. To receive notices digitally, account holders must opt out of paper notices by November 19, 2025 at www.ssa.gov/myaccount.

Through their online accounts, users can also request replacement cards, check claim status, and view tax forms such as the SSA-1099.

Medicare updates coming soon

Information about Medicare premium changes for 2026 will be available later this year at www.medicare.gov. For those enrolled in Medicare, the SSA will post updated premium details in the my Social Security Message Center by late November, with mailed notices to follow in December for those who have not gone digital.

This year’s COLA is designed to preserve the purchasing power of benefits amid evolving economic conditions. For millions of retirees and disabled Americans, the 2026 adjustment represents a small but significant step in maintaining financial stability in the face of rising costs.