The annual inflation adjustment for Social Security benefits was released on Friday, and beneficiaries are set to see larger benefits in 2026.
Social Security’s annual cost-of-living adjustment (COLA) will be 2.8% next year, following the announcement by the Social Security Administration.
On average, Social Security retirement benefits will increase by about $56 per month starting in January.
The annual Social Security COLA has averaged about 3.1% over the last decade, and was 2.5% in 2025. Inflation trending higher this year caused the COLA to be larger.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” said SSA Commissioner Frank Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
The COLA was initially expected to be released on Oct. 15. However, the Bureau of Labor Statistics was impacted by the ongoing government shutdown, which delayed the release of September CPI inflation data that’s used to compute Social Security’s COLA.
The BLS recalled some of its furloughed workers to complete the September CPI data, which was also released on Friday, to allow the COLA announcement to proceed.
SSA said that beneficiaries will receive a one-page notice about their COLA, which includes plain and personalized language along with exact dates and dollar amounts for the new benefit amount and any deductions.
AARP CEO Myechia Minter-Jordan noted in a statement that among the more than 70 million Americans who receive Social Security, it’s the primary source of income for 40% of older Americans, and touted the group’s efforts to protect the COLA and Social Security at large.
“Over the past year, many older Americans have been financially squeezed, and Social Security is an important key to their financial health. It isn’t just a source of income — it’s a lifeline of independence and dignity, for tens of millions of older Americans,” Minter-Jordan said.
The Senior Citizens League Executive Director Shannon Benton said that the “2026 COLA is going to hurt for seniors” and argued that it should be strengthened.
“Year after year, they warn that Social Security’s meager increases won’t be enough, and the Census Bureau estimates that about 10% of retirement-age Americans live in poverty. However, our research suggests that the number may be higher. It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth,” Benton said.
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