Every year the Social Security Administration calculates how inflation affects the cost of living and then adjusts benefits for the near 75 million Americans depending on those benefits to survive.
This calculation is crucial for Americans who budget their expenses based on Social Security.
Recently, the Social Security Administration confirmed a 2.8% cost‑of‑living adjustment for 2026 — a rate higher than analysts previously predicted.
For the average retired worker receiving Social Security, monthly benefits will rise by roughly $56, bringing the average check to about $2,064 beginning in January 2026.
SSI recipients will see increased payments beginning Dec. 31, 2025, because the first of the year is considered a holiday.
Spousal, survivor and disability benefits will also increase at the beginning of 2026.
For instance, the average spouse benefit is expected to climb from approximately$954 to $981, a $27 monthly increase while the average survivor benefits will rise by about $44 per month based on the COLA increase.
How does COLA work? Why the increase?
The COLA is tied to inflation and wage growth — not stimulus or tax policy.
The SSA calculates the adjustment by comparing the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI‑W) from the third quarter of the prior year to the current year.
Over the last decade, the average increase has been about 3.1%. The 2.8% raise keeps that trend intact.
Workers receiving benefits, changes for 2026
Beneficiaries who are working and receiving Social Security before full retirement age, the earnings limits for 2026 have also increased.
Beneficiaries under the full retirement age and who will not reach full retirement age in 2026 can earn up to $24,480 without penalty.
The earnings limit for recipients who are under the full retirement age at the beginning of the year but will reach full retirement in 2026 has increased to $65,160.
If you exceed these amounts, your benefit may be temporarily withheld — $1 withheld for every $2 earned above the first limit, and $1 withheld for every $3 above the second until full retirement age is reached.
How and when you’ll see the update
Beneficiaries should receive a one‑page COLA notice in late November via the my Social Security account or by mail in December.
For Medicare enrollees, 2026 premium amounts will also appear in the online Message Center. Even if you don’t receive the notice, the new benefit payment will begin automatically in January 2026.