Social Security Cost of Living Adjustment for 2026

The Social Security Administration has revealed that the cost of living adjustment (COLA) will rise by 2.8% in 2026. This increase translates to about $56 more each month for Social Security recipients, which means the average payout will be approximately $2,071 monthly, as reported by GOBankingRates.

In 2025, the COLA was set at 2.5%. Over the last decade, these adjustments have averaged roughly 3.1%, according to the office’s findings.

“Social Security is a promise kept, and annual cost-of-living adjustments are one way we work to ensure benefits reflect today’s economic realities and continue to provide a foundation of security,” stated Frank J. Bisignano, the Social Security Administration Secretary. “Cost of living adjustments are a critical part of how Social Security fulfills its mission.”

How does the Social Security Administration determine the amount paid to beneficiaries?

To calculate how much beneficiaries will receive, the Social Security Administration considers various factors, including the recipient’s work income, their retirement age, and when they began receiving benefits. As of August, the average monthly income for retirees was about $2,008.

What do senior support organizations say about the amount sent to beneficiaries?

Advocacy groups for seniors contend that despite the COLA increase, the benefits are still inadequate. They argue that many retirees struggle to meet rising expenses related to housing, food, and healthcare.

Shannon Benton, executive director of the Seniors Alliance, has voiced these concerns. “The 2026 COLA will be painful for seniors,” Benton pointed out. “They warn year after year that modest increases in Social Security are not enough, and the Census Bureau estimates that about 10 percent of Americans of retirement age live in poverty.”