The Social Security Administration has announced that the cost of living adjustment (COLA) benefit in the United States is expected to increase by 2.8 percent in 2026.
This adjustment aims to help benefits keep up with inflation, which is currently at three percent. However, it may still pose challenges for recipients as living costs gradually rise.
Historically, over the past two decades, the average COLA has been approximately 2.6 percent, making next year’s increase slightly higher than the average. The adjustment for this year was 2.5 percent.
Eligible claimants will receive notifications of the new benefit amounts either by mail or online in early December.
Payments reflecting the COLA adjustment will begin in January 2026. The specific payment date within that month will depend on the recipient’s birth date, occurring on the second, third, or fourth Wednesday.
Approximately 75 million Americans who receive Social Security or Supplemental Security Income (SSI) benefits will be impacted by this change.
SSI beneficiaries will notice their increase earlier, on December 31, 2025.
Overall, the average retiree is expected to receive an additional $56 per month starting in January.
Legal Clarity explains that individuals receiving certain types of Social Security benefits are automatically eligible for COLA.
For those who are already beneficiaries, the increase is automatically applied; no additional application or qualification is necessary.
COLA is not exclusive to retirees who have ceased working. It also extends to current beneficiaries under specific programs as long as they meet the criteria.
These programs include disability and survivors benefits, as well as the Supplemental Security Income (SSI) program, which is a means-tested benefit for individuals who are aged, blind, or disabled with limited income and resources.
If a person has worked and paid Social Security taxes for a sufficient duration, determined by the number of credits based on their age when disabled, they will be eligible for COLA.
Survivor benefits are available to family members of a deceased worker who contributed to Social Security. All survivors are entitled to COLA.
Eligible recipients of survivor benefits include a widow or widower aged 60 or older, or 50 if disabled, as well as children under 18, or up to 19 if still in high school.
Dependent parents of the deceased worker who are 62 years or older are also eligible.
The SSI program differs as it is funded by general tax revenue rather than payroll taxes.
SSI provides support to individuals who are blind, disabled, or aged 65 or older with limited income or other financial resources.
Even if a person has never worked or paid Social Security taxes, they may still receive SSI if they meet the financial criteria.
SSI recipients receive the same percentage increase in COLA as Social Security beneficiaries.