Ellie Kemp
The US cost of living (COLA) benefit is set to rise by 2.8 percent in 2026, the Social Security Administration has confirmed.
The freshly-announced increase helps benefits somewhat keep pace with inflation, which is now at three percent.
However, recipients may still struggle as the cost of living continues to inch upwards.
Over the past two decades, COLA has averaged at around 2.6 percent, making next year's hike slightly above that. This year's adjustment was 2.5 percent.
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New benefit amounts will be mailed or posted to eligible claimants online in early December.
COLA-adjusted payments start in January 2026, on either the second, third, or fourth Wednesday of the month depending on a recipient’s birth date.
Around 75 million Americans who receive Social Security or Supplemental Security Income (SSI) benefits will be affected.
People on SSI beneficiaries will see their increase earlier, on December 31 2025.
Meanwhile the average retiree will get about $56 more per month starting in January.
People on certain types of Social Security benefits are automatically entitled to COLA, as per Legal Clarity.
If you are already receiving an eligible benefit, the increase is automatically applied and there's no need to apply or qualify for it.
COLA is not limited only to retirees who’ve stopped working, but covers any current beneficiaries under certain programs so long as they meet the criteria.
These include disability and survivors benefits, as well as Supplemental Security Income (SSI) program, a separate means-tested benefit for the aged, blind or disabled with limited income and resources.
If you've worked and paid Social Security taxes for long enough - the exact number of credits dependent on your age when disabled - then you'll be eligible for COLA.
Survivor benefits go out to family members of a deceased worker who has paid into Social Security. All survivors are entitled to COLA.
Eligible recipients include their widow or widower, aged 60 years old, or 50 if disabled, or their children under 18, up until 19 in high school.
Dependent parents of the deceased worker age 62 or over are also eligible.
SSI is slightly different as it's funded by general tax revenue and not payroll taxes.
It supports people who are blind and disabled or aged 65 or older who have limited income or other financial resources.
Even if you never worked or paid Social Security taxes, you can still receive SSI if you meet the financial criteria.
COLA applies to SSI recipients too. They get the same percentage increase as Social Security beneficiaries.