A 2.8% COLA increase is planned for new Social Security benefits in 2026. The average monthly payment for retirees is $2,064. Benefits for survivors, spouses, and people with disabilities also rise. Beneficiaries who are employed have greater earnings caps, up to $65,160. However, advantages could be diminished by increased Medicare rates. Increases in net take-home pay appear to be less.
Due to inflation data from the CPI-W, Social Security benefits will increase by 2.8% in 2026 under the yearly cost-of-living adjustment (COLA). This amounts to around $56 extra per month for the average retired worker, increasing the average benefit from roughly $2,008 in 2025 to $2,064 in 2026. SSI recipients will receive larger checks beginning on December 31, 2025, and the increase is automatic, with revised payments arriving in January 2026.
New Social Security Benefit Amounts
Every October, the Social Security Administration releases the COLA rate, which is determined using the previous year’s third-quarter inflation data. The 2.8% increase is higher than the 2.5% increase in 2025, but it is still far less than the historic 8.7% increase in 2023, when inflation peaked. Approximately 75 million Americans, including those receiving SSI, will be impacted by the increased payments to almost 71 million Social Security claimants.
However, increased Medicare expenses could offset a large portion of the increase. Medicare Part B premiums are expected to increase from $185 in 2025 to roughly $202.90 per month in 2026. This means that, before accounting for other healthcare costs, the average retiree’s net monthly rise is about $38 after deducting the $56 COLA gain by nearly $18.
IRMAA surcharges have a greater impact on retirees with higher incomes; some spend $284 or more a month for Part B, which drastically lowers their COLA payout. In contrast, premiums for low-income beneficiaries covered by the hold-harmless rule will be restricted at their COLA increase, protecting the majority or all of their benefit. In 2026, rising Part D and Medicare Advantage expenses may further reduce many seniors’ take-home pay.
The Bureau of Labor Statistics at the Department of Labor monitors inflation, which influences the annual increase in Social Security benefits. The most recent raise was 8.7% in 2022, however historically, the average COLA over the previous 20 years has been roughly 2.6%.
Social Security Benefits Will Rise By In 2026
Social Security Payment will increase by around $56 per month for the average retiree, to $2,064 in January 2026. The average monthly increase in spousal benefits will be $27, from $954 to $981. It is anticipated that survivor benefits will increase from $1,575 to $1,619 per month, an increase of $44. Additionally, the monthly salary for disabled workers will rise by $44, from $1,586 to $1,630.
All recipients will receive payments that accurately reflect the state of the economy thanks to these modifications. These adjustments give people who depend on Social Security as their only source of income a slight but significant increase in their monthly spending.
With a $185 Part B premium, the average 2025 Social Security payment of $2,008 yields around $1,823 net per month. The premium increases to $202.90 (up $17.90) in 2026, earning about $1,861, a $38 gain, while the 2.8% COLA raises it to $2,064.
Earnings caps are also imposed by Social Security regulations on recipients who work past full retirement age. If they continue to work after reaching full retirement age in 2026, they can earn up to $24,480 per year without incurring penalties. The higher cap is $65,160 for those who will reach full retirement age during the year. Benefits may be temporarily reduced until retirement age is attained if earnings exceed certain caps.
This modification maintains a safety net for Social Security recipients while ensuring that working beneficiaries are not unfairly penalized.
Why Are Americans Concerned About The 2026 COLA Increase?
One example of how Social Security adjusts to inflation is the 2.8% COLA increase. Even though the raise is small, it helps millions of Americans pay for necessities like housing, healthcare, and daily living expenditures. For elderly Americans and people with disabilities, Social Security continues to be a vital source of financial stability.
“Social Security is a promise kept,” Commissioner Frank J. Bisignano stressed, with yearly modifications making sure benefits take into account the current state of the economy. Even while the rise might not completely offset growing expenses, it nonetheless gives vulnerable groups and the elderly a solid foundation of financial security.
In 2026, How Much Will Social Security Benefits Rise?
In 2026, Social Security benefits will increase by almost 2.8%. The average monthly payout for a retiree will increase by $56, to about $2,064. Benefits for survivors and disabled workers increase to $1,619 and $1,630, respectively, while spousal benefits rise to $981.
What Are The Social Security Wage Caps For Active Recipients In 2026?
A person under full retirement age is eligible to earn up to $24,480 per year without incurring penalties. A greater cap of $65,160 will apply to those who reach full retirement age in 2026. In order to prevent working beneficiaries from being unduly penalized while still receiving Social Security support, earnings over these caps temporarily cut benefits until full retirement age is attained.