2026 Social Security COLA Means More Money For Retirees

Here’s good news for struggling seniors. The Social Security Administration has announced a 2.8 percent cost-of-living adjustment (COLA) for 2026. Retirement benefits will increase by about $56 per month on average starting in January. Recipients will be notified by mail in early December of their new benefit amount.

In making the official announcement, Social Security Administration Commissioner Frank J. Bisignano said, “Social Security 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. The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

The 2.8 percent COLA for next year is a slight increase from this year’s 2.5 percent COLA, but still less than the average 3.1 percent we’ve seen in the last decade.

Of course, retirees would be receiving a bigger COLA if the Social Security Administration used the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for its calculations. The CPI-E shows how inflation actually impacts the typical retiree based on seniors’ spending habits, which is higher for healthcare and housing than for younger wage earners. 

The Seniors Trust is committed to supporting the Social Security Expansion Act. This landmark piece of legislation calls for adopting the CPI-E as the COLA calculator, better ensuring that Social Security benefits keep pace with inflation. Beyond a fair annual COLA, it will give retirees an immediate benefits increase of about $200 a month, increased minimum benefits, and ensure the long-term solvency of the Social Security program.