The Social Security Administration has confirmed a 2.8% Cost-of-Living Adjustment for 2026. The increase will affect roughly 75 million Americans, including retirees, disabled workers, and Supplemental Security Income recipients.
The COLA is meant to help beneficiaries keep up with inflation. But several offsets may reduce how much extra money people actually take home.
Retired workers will see their average monthly benefit rise by about $56, increasing from $1,964 to $2,020. For couples receiving benefits, the average increase will be around $88, bringing their combined monthly total from $3,089 to $3,177.
Disabled workers receiving Social Security Disability Insurance will get an average increase of $44 per month, raising payments from $1,586 to $1,630.
For SSI recipients, the maximum federal payment will increase by $27 for individuals (from $967 to $994) and $41 for couples (from $1,450 to $1,491). “This adjustment reflects changes in the Consumer Price Index,” the SSA stated in its official announcement.
High earners who paid the maximum into Social Security over their careers will see bigger increases. Those retiring at age 70 can now receive up to $5,251 per month. At full retirement age, the maximum is $4,152. Early retirees taking benefits at age 62 can get up to $2,969.
But there is a major offset that will reduce the net gain for most retirees.
Medicare Part B premiums are rising to $202.90 per month in 2026, up $17.90 from 2025. This premium is automatically deducted from Social Security checks for most beneficiaries.
That means the average retiree gaining $56 from COLA will only see a net increase of about $38 after the Medicare deduction. Some retirees with higher incomes may pay even more for Medicare, further reducing their take-home amount.
The Centers for Medicare & Medicaid Services announced the premium increase in November 2025. The agency cited rising healthcare costs and expanded coverage as reasons for the hike.
A new tax policy may help offset some of the loss. In 2026, a federal deduction of up to $6,000 will be available for seniors aged 65 and older. This deduction is designed to reduce taxes on Social Security income. However, the actual benefit depends on each person’s total income and tax situation.
The SSA also announced changes to the taxable wage base. In 2026, workers will pay Social Security taxes on earnings up to $184,500, an increase from $176,100 in 2025. This means higher earners will pay more into the system.
If you work while receiving Social Security before reaching full retirement age, the earnings limit has increased. You can now earn up to $24,480 per year without losing benefits, up from $23,400. Once you exceed that limit, the SSA withholds $1 for every $2 earned above the threshold.
The value of one Social Security work credit will also rise. In 2026, you need to earn $1,890 to receive one credit, up from $1,810 in 2025. Most workers need 40 credits to qualify for retirement benefits.
Benefit letters showing the new amounts were mailed in December 2025. Recipients can also check their updated payment amounts online through their My Social Security account at ssa.gov.
The 2.8% COLA is lower than recent years. In 2023, beneficiaries received an 8.7% increase. In 2024, the adjustment was 3.2%. The SSA calculates COLA each year using inflation data from the third quarter.
For many retirees on fixed incomes, the net increase of around $38 per month may not go far. Rising costs for housing, food, and utilities continue to squeeze budgets.
SSI recipients, who often have no other income, will also feel the pinch. The $27 increase for individuals barely covers the rising cost of essentials.
The Social Security Administration urges all beneficiaries to review their benefit statements carefully and report any discrepancies. Questions can be directed to the SSA’s toll-free number at 1-800-772-1213.
