Will all retirees receive a COLA increase in their 2026 Social Security benefits?
A commonly asked question as we approach the new year: will every retiree collecting Social Security benefits see a costofliving adjustment (COLA) in 2026?
The short answer: yes, in general, all retirees receiving Social Security benefits will be eligible for the 2026 COLA. But the full story is a bit more nuanced, and how much of that raise you actually keep may depend on other factors.
In essence, the COLA is designed to protect retirees from inflation. Over the years, it’s been a guarantee that benefit checks will be adjusted upward when prices rise.
According to a recent article, “For seniors who are hoping for a raise in 2026, there’s both good news and bad news. A Social Security COLA is almost assuredly coming in 2026, and all retirees who are collecting Social Security will be eligible for it.”
That means whether you are a standard retiree, receive spousal or survivor benefits, or if you’re collecting Social Security, you should see some increase.
However, while all retirees are eligible, the impact will vary significantly.
What the 2026 COLA means – and what it doesn’t
Estimates currently show the 2026 COLA could be roughly 2.7%. According to one projection: “The Social Security Board of Trustees estimates retired workers will receive a 2.7% COLA in 2026. … the average monthly benefit would increase from about $2,007 in July 2025 to $2,061 in January 2026. That means the average retired worker would receive an additional $54 per month, or $648 for the full year.”
That sounds positive, until you look closer.
First, because the COLA is a percentage increase, people with higher benefit amounts will receive more in absolute dollars, while those with smaller benefits will see smaller dollar increases.
For example: “For example, estimates … suggest a 2.7% COLA in 2026. A retiree receiving $1,500 per month would see their check rise by about $40.50, … someone with the 2025 maximum benefit … could get an extra $137.92 each month.”
Second, even though the raise takes effect in benefit checks, the increase may not translate into greater spending power.
One crucial reason? Rising costs for Medicare and other agerelated expenses. As one article notes: “The bad news is … the reality is that it does not provide more buying power as a traditional raise would. Instead, its purpose is to help protect retirees against losing buying power due to inflation.”
And: “For any retiree who is on Medicare, the COLA is probably going to be a huge disappointment because of how little of it will be left after Medicare premiums are accounted for.” In other words, although everyone gets the raise, how much you feel it depends on what you pay out in other costs.
It’s also worth recognizing that although the COLA is automatic, other changes are occurring in 2026: the full retirement age (FRA) continues to shift upward, and the taxable earnings cap for Social Security payroll taxes increases.
These broader changes won’t affect the COLA eligibility directly, but they do play into the bigger picture retirees and workers must monitor.