Social Security payments will rise in 2026 based on inflation measured through September 2025

Every year, Social Security adjusts benefit payments to account for inflation. This yearly change is called a Cost of Living Adjustment, or COLA. The 2026 COLA will be announced in October 2025 and will take effect when payments arrive in January 2026. The exact percentage increase depends on how much prices rose between July 2024 and September 2025 — the period the government uses to calculate inflation.

The 2026 increase will affect everyone who receives Social Security: retirees, disabled workers, and survivors of workers who have died. Supplemental Security Income (SSI) payments will also increase by the same percentage. If you receive benefits, your January 2026 payment will be higher than your December 2025 payment, though the exact amount depends on your current benefit level and how much inflation occurred during the measurement period.

Key Takeaways

  • The 2026 COLA will be announced in October 2025 and applied to January 2026 payments based on inflation data through September 2025.
  • All Social Security beneficiaries — retirees, disabled workers, and survivors — receive the same percentage increase.
  • Your new payment amount depends on your current benefit and the inflation rate, which is not known until the official announcement.
  • You do not need to do anything to receive the increase; it happens automatically if you are already receiving benefits.
  • Medicare premiums may also change in 2026, which can offset some or all of your benefit increase for people enrolled in Part B or Part D.

How the COLA is calculated and announced

The Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to measure inflation. This index tracks price changes for food, housing, transportation, medical care, and other goods and services. The government compares prices from the third quarter of one year to the third quarter of the next year — so the 2026 COLA uses data from July through September 2024 compared to July through September 2025.

The Social Security Administration announces the COLA in the second week of October each year. For 2026, the announcement will happen in October 2025. You can find the official percentage on the Social Security website or by calling 1-800-772-1213. The increase takes effect automatically; you will see the higher amount in your January 2026 payment if you receive benefits by direct deposit or check.

What the increase means for your monthly payment

If the COLA for 2026 is 2.5%, for example, someone receiving $1,800 per month would see their payment rise to $1,845. The exact dollar amount you receive depends on your current benefit, which is based on your earnings history and the age at which you claimed. Higher earners receive larger dollar increases from the same percentage COLA, while lower earners receive smaller dollar increases.

The increase applies to your full benefit amount. If you are married and both you and your spouse receive Social Security, you each get the increase on your individual benefit. If you receive benefits as a spouse or survivor based on someone else's work record, your payment increases by the same percentage as the primary beneficiary's payment.

Medicare premium changes that may reduce your increase

While your Social Security payment rises, your Medicare premiums may also increase in 2026. Medicare Part B (doctor and outpatient care) and Part D (prescription drugs) premiums are announced at the same time as the COLA. For most people, Medicare Part B premiums are deducted directly from your Social Security payment before you receive it.

In some years, the COLA increase is smaller than the premium increase, which means your take-home payment stays the same or even decreases. This happened in 2022, when premiums rose more than the COLA. There is a rule called the hold harmless provision that prevents your Social Security payment from going down because of Part B premium increases, but it only protects people already on Medicare. If you are newly enrolled in Medicare in 2026, you may not receive this protection.

Planning for the 2026 increase

If you are still working and receiving reduced Social Security benefits, the 2026 increase will apply to your benefit amount. However, if you earn above the annual earnings limit (which also changes yearly), Social Security will still withhold $1 in benefits for every $2 you earn above that limit. The earnings limit and the COLA are announced at the same time.

If you have not yet claimed Social Security, the 2026 COLA does not directly affect you, but it shows how benefits grow over time. Someone who delays claiming from age 62 to age 67 will receive a higher starting benefit partly because of the COLAs that occur during those five years. The longer you wait to claim (up to age 70), the larger your benefit becomes, and future COLAs will be calculated on that higher amount.

What happens if inflation is very low or negative

In rare years, inflation is so low that the COLA rounds to zero, meaning no increase occurs. This happened in 2010, 2011, and 2016. In those years, beneficiaries received the same payment amount as the previous year. Social Security has never reduced benefits due to negative inflation, though the COLA can be zero.

If 2026 inflation is very low, the COLA could be smaller than recent years. The Social Security Administration publishes inflation estimates throughout the year, so you can get a rough idea of what to expect before the official October announcement, though the final number may differ.

Frequently Asked Questions

When will I see the 2026 increase in my payment?

The increase takes effect in January 2026. If you receive benefits by direct deposit, the higher amount will appear in your bank account on your regular payment date in January. If you receive a check, it will arrive with the new amount. You do not need to do anything to receive it.

Does the COLA increase apply to SSI payments too?

Yes. Supplemental Security Income (SSI) payments increase by the same COLA percentage as Social Security. The increase takes effect on January 1, 2026, for SSI recipients as well.

What if I am still working — does the earnings limit change too?

Yes. The annual earnings limit for people receiving reduced benefits before full retirement age is adjusted each year based on wage growth, which is announced at the same time as the COLA. If you earn above the new limit, benefits are withheld at the rate of $1 for every $2 over the limit.

Can I find out the 2026 COLA before October 2025?

The official announcement happens in October 2025, but you can estimate it based on inflation data released throughout the year. The Social Security Administration publishes estimates on its website, though the final number may differ slightly from early projections.

Will my Medicare premium increase offset my Social Security raise?

It depends on how much premiums rise compared to the COLA. If you are already on Medicare, the hold harmless provision protects you from a net decrease in your payment. If you are newly enrolling in Medicare in 2026, you may not have this protection and could see a smaller net increase.