Every year, the Social Security Administration (SSA) adjusts benefit payments through a Cost-of-Living Adjustment (COLA). This adjustment is based on inflation, and it helps retirees and other beneficiaries keep up with rising living expenses. For 2026, millions of Americans are eager to know how much of an increase they can expect in their monthly Social Security payments.
COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The data from the third quarter of 2025—July, August, and September—will determine the final COLA percentage for 2026. The official announcement usually comes in October each year.
Table of Contents
Expected Increase for 2026
While the final number won’t be released until fall 2025, early projections suggest a smaller increase than in previous years. This is due to slowing inflation compared to the peak years of 2022–2024.
Here are estimated COLA rates based on recent economic forecasts:
| Year | COLA Rate | Average Monthly Benefit Increase |
|---|---|---|
| 2023 | 8.7% | $144 |
| 2024 | 3.2% | $59 |
| 2025 | 2.6% | $48 |
| 2026 | 2.1% (estimated) | $39–$42 |
Note: These figures are projections and may change depending on actual CPI-W data.
Who Gets the COLA Increase?
All Social Security recipients will receive the COLA increase, including:
- Retired workers
- Disabled individuals receiving SSDI
- Surviving spouses or children of deceased workers
- Supplemental Security Income (SSI) beneficiaries
If you receive both Social Security and SSI, both benefits will adjust automatically.
When Will the COLA Take Effect?
The 2026 COLA increase will begin with January 2026 payments:
- SSI recipients will see the increase in their December 31, 2025 payment (since January 1 is a holiday).
- Social Security retirees and SSDI beneficiaries will receive the adjustment in their January 2026 checks, based on their regular payment schedule.
How Will It Affect Medicare Deductions?
Each year, Medicare Part B premiums may also increase, which could reduce the net benefit you receive. For example, if your COLA boost is $40 a month but Medicare premiums rise by $15, you’ll only see a $25 actual increase in your bank account.
This is important for seniors who rely heavily on fixed Social Security income to manage medical expenses, rent, and groceries.
What to Do as a Beneficiary
You don’t need to take any action to receive the increase. The SSA will automatically apply the new amount based on your existing benefits. However, you should:
- Check your my Social Security account in December to see your updated 2026 payment.
- Review any Medicare changes at the same time, especially if you are on a fixed budget.
- Consider talking to a financial advisor if your cost of living is rising faster than your benefit increases.