Social Security benefits to rise 2.8% in 2026, matching inflation trends
Average retiree will see about $56 more per month beginning in January
Adjustment affects nearly 75 million Americans receiving Social Security or SSI
The Social Security Administration has announced that monthly benefits will rise by 2.8% in 2026, marking a modest cost-of-living adjustment (COLA) aimed at helping retirees and other beneficiaries keep pace with inflation.
Starting in January, retirees will receive an average of about $56 more per month, according to the agency. The adjustment applies to both Social Security and Supplemental Security Income (SSI), impacting roughly 75 million Americans who rely on these payments.
Keeping up with inflation – barely
The COLA is designed to ensure that benefits reflect changes in consumer prices, helping protect the purchasing power of seniors, people with disabilities, and others who depend on the programs. Still, for many recipients struggling with rising costs of housing, food, and healthcare, this year’s increase may not be enough to fully offset inflation.
“The 2026 COLA is going to hurt for seniors. Year after year, they warn that Social Security’s meager increases won’t be enough, and the Census Bureau estimates that about 10 percent of retirement-age Americans live in poverty," said Shannon Benton, CEO of the Senior Citizens League. "However, our research suggests that the number may be higher. It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth.”
“The annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities,” said Social Security Administration Commissioner Frank J. Bisignano. “Social Security is a promise kept... and continues to provide a foundation of security.”
"Over the past year, many older Americans have been financially squeezed, and Social Security is an important key to their financial health," said Myechia Minter-Jordan, CEO of AARP. "It isn’t just a source of income – it’s a lifeline of independence and dignity, for tens of millions of older Americans. Yet even with the COLA, 77% of older adults still face challenges covering basic expenses.
Historical context and outlook
The 2.8% COLA aligns with economists’ forecasts, which had projected an increase between 2.7% and 2.8%. Over the past two decades, the average annual adjustment has been 2.6%, according to The Senior Citizens League, a nonpartisan advocacy group for older Americans.
This year’s increase slightly exceeds the 2.5% adjustment in 2025, continuing a pattern of moderate benefit growth as inflation gradually cools from its pandemic-era highs.
While the adjustment offers a welcome boost to millions of households, advocates caution that many seniors remain financially vulnerable, particularly as healthcare and housing costs continue to outpace overall inflation.