The Social Security Administration (SSA) recently announced an increase in benefits that will go into effect in January 2026. A 2.8% Cost-of-Living Adjustment (COLA) designed to keep pace with inflation will be added to Social Security and Supplemental Security Income payments at the start of the new year.

The SSA calculates COLAs based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) that is measured from July through September. With increased prices during that period, a benefit increase in January is the result of the data. The 2.8% adjustment taking place in 2026 represents a modest rise in inflation over the past year. While the COLA helps preserve purchasing power, it’s based on a broad inflation index that may not fully account for rising costs of health care, housing or groceries.

With this COLA, the SSA states that the average monthly retirement benefit is expected to increase by an average of $56. Medicare Part B premiums are deducted directly from Social Security payments for most beneficiaries. Medicare Trustees have projected that the standard Part B premium will increase from $185 in 2025 to $206.50 in 2026. With this, the actual increase to monthly deposits may be less than the full COLA amount.

Mailing notices will go out in December. If you have a my Social Security account, you can view your adjustment online now. To access your account, go to ssa.gov/myaccount and enroll now. 

Plan ahead for adjustments to your monthly budget due to this COLA. Now is a good time to review your monthly expenses and income, especially if you expect changes in Medicare premiums or other costs.