Social Security 2026 COLA Increase for 75 Million Seniors Released
The cost of living adjustment has been announced for 2026 Social Security benefits, and seniors will see a 2.8 percent increase on their benefits next year.
The Social Security Administration revealed the monthly payment adjustment based on the most recent inflation data from the Bureau of Labor Statistics.
Why It Matters
Around 75 million Americans rely on Social Security benefits each month. These payments are in part calculated by work history and income but also are adjusted every year based on the consumer price index for urban wage earners and clerical workers (CPI-W).
What To Know
The 2.8 percent COLA will translate to roughly $56 extra per month for the average retiree on Social Security.
While this is an increase from the 2.5 percent boost beneficiaries received this year, not everyone feels the adjustment will be enough to cover the inflation seniors experience on everyday items.
“It’s a hollow raise. Medicare’s taking the first $21.50 before seniors see a dime,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.
Because Medicare Part B premiums are set to increase to $206.50, seniors will likely only see a net gain of $34.50 monthly.
The Senior Citizens League previously warned that a 2.7 percent COLA would not be enough to support seniors and the economic pressures they face.
“Our team predicts a 2.7 percent COLA, a slight increase from last year’s 2.5 percent. But even with that bump, it still won’t be enough to cover the rising costs seniors face,” the organization said at the time. “Everyday essentials like housing, healthcare, and groceries continue to climb faster than the COLA can keep up with.”
What People Are Saying
Social Security Administration Commissioner Frank J. Bisignano said in a statement: “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 and continue to provide a foundation of security. The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: “The COLA announcement this week is pivotal for millions of seniors who rely on Social Security benefits as a key source of income, as it details how much of an increase they’ll see in their check amounts to meet inflation for the coming year. As prices continue to rise and many are concerned the full effect of tariffs is still not being felt in many items, many seniors may feel like the increase won’t match the extra amount they’ll need to cover expenses.”
Ryan told Newsweek: “Here’s the brutal math: 40 percent of your COLA evaporates before it hits your checking account. For the 4 in 10 seniors who depend entirely on Social Security, that’s not a cost-of-living adjustment, that’s a cost-of-healthcare tax disguised as a benefit increase.”
Kim Scouller, a financial professional with World Financial Group, told Newsweek: “The COLA increase is a lifeline for retirees and anyone on a fixed income. But it’s not designed to make retirees richer, it’s designed to help them stay even. With inflation still sticky in essentials like food, utilities, and insurance, retirees must know how to make every increase count.”
What Happens Next
Seniors have lost 20 percent of their purchasing power in Social Security payments since 2010 as COLA routinely lags actual inflation, Ryan said.
“When housing, food, and medical costs are climbing faster than the formula accounts for, it’s like getting a 3 percent raise while your rent goes up 8 percent,” Ryan said.
“This isn’t good or bad news. It’s predictably inadequate news. Seniors shouldn’t plan around their COLA. They need to plan despite it.”
The adjustment to the COLA payments will be reflected in seniors’ January Social Security checks.