The annual adjustment for Social Security benefits due to inflation was revealed on Friday, indicating beneficiaries will see a notable increase in 2026.
The Social Security Administration stated that the cost of living adjustment (COLA) for next year will be 2.8%.
On average, Social Security retirement benefits will rise by approximately $56 each month beginning in January.
Over the last decade, annual Social Security COLAs have averaged around 3.1%, with 2025 seeing a 2.5% adjustment. The increases this year were notably higher due to rising inflation.
Frank Bisignano, the Secretary of the SSA, mentioned, “Social Security is a promise kept. Annual cost-of-living adjustments are crucial to ensure that benefits align with today’s economic realities, continuing to provide a foundation for security.” He emphasized that COLA plays a key role in fulfilling the mission of Social Security.
The COLA announcement was initially set for October 15 but was delayed by the ongoing government shutdown, which impacted the Bureau of Labor Statistics’ release of September’s CPI inflation data crucial for these calculations.
In a proactive move, the BLS decided to move forward with the announcement by recalling some furloughed employees to compile the necessary CPI data, which was also made available on Friday.
Beneficiaries will receive a one-page notice detailing the COLA, providing clear and succinct information on the new benefits and deductions.
Mietia Minter-Jordan, CEO of AARP, highlighted that of the more than 70 million Americans receiving Social Security, it serves as the primary income source for 40% of seniors. This underlines the organization’s ongoing commitment to protecting Social Security and COLA in particular.
Minter-Jordan added, “Many older Americans have faced financial strain over the past year, making Social Security essential for their financial health. It represents more than just income; it’s a lifeline of independence and dignity for millions.”
On another note, Shannon Benton, executive director of the Federation of Senior Citizens, remarked that the 2026 COLA may not adequately support seniors and called for its strengthening.
“Every year, we hear that modest increases are insufficient, and Census Bureau data indicates around 10% of seniors live in poverty. However, our findings suggest the real number could be much higher. It’s time for our elected officials to advocate for seniors, or they may find themselves without votes come election time,” Benton stated.
