Approximately 75 million people in the United States will see a 2.8 percent increase in Social Security and Supplemental Security Income (SSI) benefits in 2026. This increase, called a Cost-of-Living Adjustment (COLA), is an important measure to protect beneficiaries’ purchasing power in the face of rising inflationary pressures. Simply put, COLA ensures that your Social Security and SSI benefits continue to cover your daily expenses despite rising living costs.
Approximately 71 million Social Security beneficiaries will receive the new, increased amount in January 2026. For approximately 7.5 million SSI beneficiaries, the increased payments will begin on December 31, 2025. It’s worth noting that some people receive both Social Security and SSI benefits. For these beneficiaries, this increase could significantly impact their monthly budget.
Social Security Payments and Income Limits for 2026
The maximum income for Social Security tax has increased this year ($184,500). Additionally, the income limit for employees under full retirement age is set at $24,480. Earnings above this limit will be subject to a $1 deduction for every $2 earned.
Employees who reach their full retirement age in 2026 have an income limit of $65,160. Earnings above this limit will be subject to a $1 deduction for every $3 earned until they reach full retirement age. However, there will be no income limit for employees who have been at full retirement age for the entire year.
It’s important to understand that these income limits apply only to beneficiaries who are receiving Social Security benefits based on their earnings. If you are fully retired and receiving your full earnings, you won’t have to worry about these limits.
COLA Notices and Online Access
The Social Security Administration (SSA) will make the COLA notice available online at the end of November 2025. Most beneficiaries will be able to view this notice in the Message Center of their My Social Security account. This is a secure and convenient way to access the COLA notice online and save it for future reference.
Beneficiaries are advised to be wary of any phone call, email, or mail fraud. Personal information or advance fees are never requested on behalf of Social Security or any government agency. To avoid these fraudulent calls and email “phishing scams,” do not share any personal information.
Life Changes and Impact on Benefits
Certain life events can impact your Social Security and SSI benefits. For example:
- Marriage or divorce
- Death of a spouse
- Children or stepchildren receiving benefits on your record and no longer living with you
In these circumstances, it is essential to notify the SSA immediately. For more information and updated benefit eligibility, you can visit SSA Potential Entitlement.
The SSA occasionally shares computer records with other government agencies to ensure accurate benefit eligibility. This is permitted by law, and data sharing may occur without the beneficiaries’ consent.
Medicare and Social Security
For beneficiaries receiving Medicare, the new Medicare amount for 2026 will be available in December through their COLA notice and the My Social Security Message Center. Information on Medicare changes can be found at Medicare.gov or by calling 1-800-MEDICARE.
Social Security and Medicare are interconnected. If you receive Social Security benefits and are covered under Medicare Part A or Part B, your COLA notice will also reflect the new premium amount for Medicare.
History and Importance of COLA
The main purpose of the Cost-of-Living Adjustment (COLA) is to ensure that the purchasing power of Social Security and SSI benefits is balanced by inflation. This increase is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W is determined by the Bureau of Labor Statistics of the U.S. Department of Labor.
The Social Security Amendments of 1972 added the COLA provision, and automatic annual COLAs began in 1975. Previously, benefits only increased when Congress enacted special legislation. Since 1975, COLAs have changed periodically. For example:
- January 2021 – 1.3%
- January 2022 – 5.9%
- January 2023 – 8.7%
- January 2024 – 3.2%
- January 2025 – 2.5%
- January 2026 – 2.8%
These figures show that COLAs are intended to ensure the financial security of beneficiaries and mitigate inflationary pressures.
What this means for 2026 beneficiaries
A 2.8% COLA increase in 2026 will bring financial relief to beneficiaries. This increase will not only protect Social Security and SSI benefits from inflation but will also ensure that beneficiaries’ daily needs, such as rent, groceries, medications, and other essential expenses, can be met despite inflation.
Beneficiaries are advised to:
- Review and understand their COLA notice.
- Be aware of income and benefit rules.
- Protect any personal information.
Get updated information for Medicare and other related benefits.
Conclusion
The 2026 2.8% COLA increase is welcome news for Social Security and SSI beneficiaries. It provides them with financial stability while protecting them from the effects of inflation. Furthermore, this increase will directly contribute to their monthly budgets and help them meet life’s basic necessities.
With caution and awareness, beneficiaries can maximize this increase and maintain financial stability. This 2.8% increase is not just a figure—it is a means to improve the daily quality of life for millions of Americans.
FAQs
Q. What is the COLA increase for 2026?
A. The 2026 Cost-of-Living Adjustment (COLA) is 2.8%.
Q. When will the new Social Security payments begin?
A. Increased Social Security benefits will begin in January 2026.
Q. When will SSI recipients receive their increased payments?
A. SSI recipients will receive increased payments starting December 31, 2025.
Q. Will everyone receive the COLA increase?
A. Yes, all eligible Social Security and SSI beneficiaries will receive the 2.8% increase.
Q. Where can I check my updated benefit amount?
A. You can view your updated amount in your my Social Security account or in your mailed COLA notice.
