Social Security recipients will see a 2.8% cost-of-living adjustment (COLA) in 2026, raising monthly benefit amounts for millions of seniors next year.
The Social Security Administration announced the updated payments based on the latest inflation figures from the Bureau of Labor Statistics.
Why it matters
Roughly 75 million Americans receive Social Security benefits each month. While individual payments vary based on work history and earnings, benefits are adjusted annually using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
What to know
A 2.8% COLA is expected to add about $56 per month to the average retiree’s Social Security check.
Although the increase is higher than this year’s 2.5% adjustment, some experts argue it still may not keep up with the expenses seniors face—particularly healthcare costs.
Michael Ryan, a finance expert and founder of MichaelRyanMoney.com, described the increase as limited in practical terms, noting that rising Medicare costs can absorb much of the boost.
With Medicare Part B premiums expected to rise to $206.50, seniors could see an estimated net increase of about $34.50 per month after the higher premium is deducted.
The Senior Citizens League previously cautioned that even a COLA in this range wouldn’t fully match the pace of rising essentials like housing, healthcare, and groceries, which can outstrip the formula used to calculate the annual adjustment.
What people are saying
Social Security Administration Commissioner Frank J. Bisignano said the COLA is intended to help benefits reflect current economic conditions and maintain a baseline of financial security.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, said the COLA matters deeply for seniors who depend on Social Security, but worries remain about whether the increase will be enough—especially as prices continue to rise and some consumers fear broader cost impacts may still be ahead.
Ryan argued that a significant share of the increase can be effectively wiped out before it reaches beneficiaries, particularly for those who rely entirely on Social Security.
Kim Scouller, a financial professional with World Financial Group, said COLA is meant to help retirees “stay even,” not get ahead, and emphasized the importance of budgeting carefully as inflation remains elevated in key household categories.
What happens next
Ryan said Social Security benefits have lost about 20% of their purchasing power since 2010, arguing that COLA often trails the inflation seniors actually experience.
He compared the situation to receiving a modest raise while major expenses climb faster, and urged retirees not to build their financial plans around COLA alone.
The updated benefit amounts will appear in January 2026 Social Security payments.
