Social Security COLA 2026 announced: Good news for beneficiaries? What to expect.

After a near two-week delay, the Social Security Administration has announced the Cost Of Living Adjustment for 2026 and it may be more than beneficiaries expected.

The agency announced 2026 COLA is 2.8% — a modest increase from what some recipients may have anticipated.

“On average, Social Security retirement benefits will increase by about $56 per month starting in January,” the agency announced.

Social Security Administration Commissioner Frank J. Bisignano said the increase 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.”

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Every year the Social Security Administration calculates how inflation affects the cost of living and then adjusts benefits for the near 71 million Americans depending on those benefits to survive.

This calculation is crucial for Americans who budget their expenses based on Social Security — and after postponing the news due to a government shutdown — the number has finally been released.

According to the Social Security Administration, the actual COLA increase is determined by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to September of the calendar year.

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Over the past decade, COLA increases have averaged about 3.1%, the agency said.

Meaning, that while the 2026 amount is more than was predicted, it still falls short of the historical average.

“Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026,” the agency said.

“Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025.”