Editor’s note: This article was originally published for the 2025 COLA and has been fully updated with the official 2026 figures announced by the Social Security Administration in October 2025, including the 2.8% adjustment and the new Medicare Part B premium.
Social Security Recipients to See a 2.8% COLA Increase in 2026!
For those who receive Social Security, there is an important update for the upcoming year: a 2.8% increase in Social Security income will take effect in 2026. These annual adjustments are known as cost-of-living adjustments (COLA).
According to the Social Security Administration (SSA), the increased benefits will be payable to tens of millions of Social Security beneficiaries starting in January 2026. While an extra $50 (or so) may seem modest to some, this additional income can help many people better manage their expenses, pay bills, and support their families.
The COLA for 2026 was determined by the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2024 to the third quarter of 2025. This yearly adjustment, calculated by the Bureau of Labor Statistics (BLS), is designed to ensure that the purchasing power of benefits is not eroded by inflation.
Specifically, the calculation involved comparing the average CPI‐W values for July, August, and September of 2024 with the same months in 2025, which resulted in the 2.8% increase. This adjustment comes as a welcome relief for retirees, especially as they continue to face elevated costs for essentials like gas and groceries. In today’s uncertain economic times, every dollar makes a difference.
To learn more about what the 2026 COLA means for you, continue reading.
