Social Security Benefits Increase for 2026
According to the Social Security Administration (SSA), those with disabilities and retirees make up the roughly 74.5 million people that receive Social Security payments. The 2026 COLA, or cost-of-living adjustment, was originally scheduled to be released on October 15 but was delayed due to the impact of the government shutdown. However, some employees at the Bureau of Labor Statistics (BLS) were recalled to prepare the September Consumer Price Index (CPI), which is essential to computing the 2026 COLA.
The SSA announced recently that benefits will increase next year by 2.8%. This rise applies to retirement benefits, disability benefits (SSDI), survivor benefits, and Supplemental Security Income (SSI).
Annual COLA Adjustments
Since 1975, annual COLA has been added to Social Security payments each year. On average, the cost-of-living adjustment (COLA) translates to an increase of about $56 per month, the agency said. This 2.8% rise in benefits is higher by 0.3% than the 2.5% rise in 2024 and reflects that inflation has accelerated over the past year. The COLA is calculated based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
“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,” Social Security Administration Commissioner Frank J. Bisignano said in a statement.
Many retirees and those with disabilities find this COLA increase lacking, as the current inflation rate is at 3%. “A 2.8% increase is modest, especially for retirees whose cost increases may be higher in areas such as health care, housing, or other retirement-specific expenses,” Martha Shedden, co-founder of the National Association of Registered Social Security Analysts (RSSA), told Kiplinger.
For the average Social Security beneficiary this year, the 2.8% bump translates to a monthly increase of about $56. The maximum amount of earnings subject to the Social Security tax escalates to $184,500. The new adjustment is just about a month out, set to begin in January 2026. The SSA will send beneficiaries a one-page statement starting in early December with “exact dates and dollar amounts” of their new monthly benefits for 2026, as well as any deductions, according to the agency. Beneficiaries who have a My Social Security account can see their cost-of-living adjustment notice available online now.
The 2026 COLA adjustment is a significant update for those receiving disability benefits, offering necessary support as the COLA rises with inflation. If you’ve been denied benefits, Lowery Law Group is here for you. We stand ready to help secure the benefits you need and deserve. Contact us at info@lowerylegal.com or call (843) 991-0733. There is no fee for a free consultation regarding your claim.