Starting January 2026, millions of Social Security recipients will see a welcome rise in their monthly payments thanks to a 2.8% Cost-of-Living Adjustment (COLA). This increase is aimed at helping beneficiaries keep up with inflation and rising living costs such as food, rent, and healthcare. With more than 75 million Americans affected, including retirees, disabled workers, survivors, and Supplemental Security Income (SSI) recipients, the COLA increase ensures that Social Security income does not lose its value over time.
Here’s a breakdown of the average increases for different categories of Social Security recipients:
| Category | Previous Amount | New Amount | Monthly Increase |
|---|---|---|---|
| Retirees | $2,008 | $2,064 | $56 |
| Spouses | $954 | $981 | $27 |
| Survivors | $1,575 | $1,619 | $44 |
| Disabled Workers | $1,583 | $1,627 | $44 |
| SSI Recipients | — | — | Larger payments begin Dec 31, 2025 |
The best part? You don’t need to do anything to receive this increase. The adjustment will be made automatically, with no forms or applications required.
“These COLA adjustments are a vital part of Social Security, ensuring that benefits are not eroded by inflation over time,” says Dr. David F. Lee, a senior economist at the National Retirement Security Center. “It’s a way to keep people’s purchasing power in line with the rising cost of living.”
Why COLA Matters for Social Security?
The Cost-of-Living Adjustment (COLA) is an essential feature of Social Security because it helps beneficiaries keep up with inflation. Without COLA adjustments, Social Security benefits would lose value over time as prices increase, making it harder for people to cover basic needs.
Here’s why COLA matters:
- Protects long-term value: Ensures that Social Security payments remain in line with the cost of living.
- Automatically adjusted: Based on official inflation and wage data, so it reflects actual economic conditions.
- Not a government handout: It’s not a stimulus or a tax refund, it’s simply a way to keep Social Security relevant and fair for recipients.
Even with the automatic adjustment, many Americans don’t fully understand how COLA works. In fact, nearly 1 in 5 retirees think Social Security doesn’t rise with inflation, showing that there’s a gap in public awareness about how this system supports beneficiaries over time.
“COLA is not just a benefit adjustment, it’s a tool that keeps Social Security responsive to economic realities,” explains Marilyn Adams, a policy analyst at the AARP. “Without COLA, seniors and other beneficiaries would see their purchasing power shrink every year, making it harder to meet basic living expenses.”
How Age and Work Affect Your Benefits in 2026?
When you decide to claim Social Security also affects how much you’ll receive. The age options for claiming—62, 67 (full retirement age), or 70, affect the final benefit amount. Additionally, if you continue to work while receiving Social Security, there are some earning limits that can impact your benefits.
Before full retirement age:
- You can earn up to $24,480 before any reduction in benefits.
- Earnings above this threshold may result in a temporary reduction in benefits.
If reaching full retirement age in 2026:
- You can earn up to $65,160 without affecting your benefits.
- For every $3 you earn above this limit, $1 will be withheld from your benefits.
After full retirement age:
- No earnings limits or reductions apply, and you can earn as much as you want without affecting your benefits.
This system allows people to work while receiving benefits, but understanding the limits helps avoid unexpected reductions in monthly income.
Steven Harris, a retirement planning expert at Financial Freedom Advisors, says, “The ability to continue working without penalty after reaching full retirement age is crucial for many seniors. The new earnings thresholds provide more flexibility, which is a positive change for those who need to supplement their income.”
How Will You Know Your New Benefit Amount?
Social Security will notify all beneficiaries of their new monthly benefit with a simple one-page COLA notice. The notice will include:
- Your updated monthly amount
- Any deductions (like Medicare premiums)
- The exact date your new payment starts
If you have a my Social Security online account, you can check your new benefit amount in late November 2025. For those waiting for a paper notice, expect it to arrive in December. Even if your paper notice is delayed or lost, your updated payment will still be automatically reflected in your January 2026 payment.
If you have Medicare, the updated premium amounts will also show up in your online Message Center, helping you understand the total net deposit after deductions.
“As soon as Social Security beneficiaries receive their COLA notice, they should check for any changes in their total payment,” advises Nina Blake, a financial consultant at Blake & Associates Financial Group. “Understanding your full payment—including any Medicare premiums—helps you plan and manage your monthly budget more effectively.”
Plan Ahead and Stay Informed
Knowing the new payment amount is crucial for managing your monthly budget, especially if you rely on Social Security for all or part of your income. This increase brings a much-needed financial boost, particularly in times when the cost of living is rising.
Staying informed about Social Security and how it works is essential for securing your financial future. As inflation continues to affect everyday prices, understanding the role of COLA and how it adjusts benefits will help you better prepare for changes in your income.
FAQs
When will the 2026 Social Security increase begin?
The new payment amounts will begin in January 2026. For SSI recipients, the larger payments will start on December 31, 2025.
Do I need to apply to get the increased payment?
No, the increase is automatic. There’s no need to submit forms or make requests to receive the COLA adjustment.
How much will the average Social Security payment increase?
The average monthly retirement benefit will rise by $56, from $2,008 to $2,064.
Will working affect my benefits in 2026?
Yes. If you earn more than $24,480 before full retirement age, some of your benefits may be temporarily withheld. After full retirement age, there are no limits.
Where can I see my new payment amount?
You can check your new benefit amount in your my Social Security account online in late November 2025. Alternatively, you will receive a mailed notice in December with the updated information.