The NARSSA Team
October 30, 2025 Basics
The Social Security Administration (SSA) has announced a 2.8% cost-of-living adjustment (COLA) for 2026. This annual increase ensures that benefits keep pace with inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The new adjustment will take effect in January 2026 for most beneficiaries, providing a modest boost to monthly benefit amounts.
How Benefits Will Change
The average retired worker’s monthly benefit will increase from $2,015 to $2,071, while the maximum benefit for someone retiring at full retirement age will rise from $4,018 to $4,152 per month.
These increases are designed to help beneficiaries maintain their purchasing power amid rising costs of living, particularly in areas such as housing, healthcare, and daily expenses.
Other Key Social Security Adjustments for 2026
In addition to the COLA, several other important figures will be updated in 2026:
Maximum taxable earnings: $184,500 (up from $176,100)
Earnings required for one quarter of coverage: $1,890 (up from $1,810)
These updates affect both workers contributing to Social Security and individuals tracking their eligibility and future benefits.
Why a COLA Matters
Each year, the SSA determines whether benefits should increase by comparing third-quarter CPI-W data to the previous year. If inflation rises, a COLA is applied to ensure that beneficiaries’ purchasing power isn’t eroded over time.
This adjustment plays a critical role in protecting retirees, people with disabilities, and survivors who rely on Social Security as a key source of income.
When Will Beneficiaries See the Increase?
Beneficiaries will begin receiving higher payments in January 2026.
However, Supplemental Security Income (SSI) recipients will see the increase slightly earlier, beginning with their December 31, 2025 payment.
You can view the SSA’s official 2026 COLA Fact Sheet here.
Photo by Markus Winkler on Unsplash
