Social Security payments in 2026 will increase by 2.6 percent from 2025 amounts

The Social Security Administration announced in October 2024 that the Cost of Living Adjustment (COLA) for 2026 will be 2.6 percent. This means the monthly payment you receive in January 2026 will be 2.6 percent higher than what you received in December 2025. The exact dollar amount depends on your age when you started collecting, your work history, and whether you receive retirement, disability, or survivor benefits.

The 2.6 percent increase is smaller than the 3.2 percent raise that happened in 2025 and much smaller than the 8.7 percent jump in 2023. COLA is calculated each year based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from the third quarter of one year to the third quarter of the next. Because inflation has moderated from its 2022 peak, the 2026 increase reflects that slower pace.

Key Takeaways

  • Your January 2026 payment will be 2.6 percent higher than your December 2025 payment, though the exact dollar amount depends on your benefit type and when you started collecting.
  • COLA is tied to inflation and is calculated automatically each year; you do not need to do anything to receive the increase.
  • The 2.6 percent raise is lower than recent years because inflation has slowed from its 2022 and 2023 levels.
  • If you are still working and have not yet reached full retirement age, your benefit may be reduced by $1 for every $2 you earn above the annual earnings limit, which also increases each year.

How the 2.6 percent increase translates to your payment

If you received $1,500 per month in December 2025, your January 2026 payment would be approximately $1,539. If you received $2,000 per month, your 2026 payment would be approximately $2,052. The Social Security Administration will send you a new benefit statement in December 2025 showing your exact 2026 amount.

The increase applies to all types of Social Security benefits: retirement, disability (SSDI), and survivor benefits. Supplemental Security Income (SSI), a separate program for people with low income and limited resources, also receives a COLA increase, though the calculation method differs slightly.

Why COLA changes year to year

COLA is not set by Congress or the Social Security Administration. Instead, it is calculated automatically based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures price changes for food, housing, transportation, medical care, and other goods and services. The Social Security Administration compares the average CPI-W for July, August, and September of one year to the same three months in the previous year. If there is an increase, that percentage becomes the COLA for the following year.

In 2023, inflation was running high, so COLA was 8.7 percent. In 2024, inflation had cooled somewhat, and COLA was 3.2 percent. In 2025, it dropped further to 2.6 percent. This reflects the real-world experience of prices: they rose sharply in 2021 and 2022, then the pace of increase slowed through 2024 and into 2025.

Earnings limits if you are still working

If you are receiving Social Security retirement benefits and are younger than your full retirement age, your benefit is reduced by $1 for every $2 you earn above an annual limit. For 2025, that limit is $23,400. The limit increases each year based on wage growth, so the 2026 limit will be higher, though the Social Security Administration has not yet announced the exact figure.

This earnings test applies only to people who have not yet reached full retirement age. Once you reach full retirement age, you can earn any amount without a reduction to your benefit. If you are receiving disability benefits (SSDI) and working, different rules apply—you may be able to work and keep your full benefit through work incentive programs like Trial Work Period.

Medicare premiums and taxes on benefits

When your Social Security payment increases, your Medicare Part B premium may also increase. The Social Security Administration holds your Part B premium harmless, meaning your benefit increase cannot be completely wiped out by a premium increase, but your net gain may be smaller than the 2.6 percent raise suggests. If you pay income tax on your Social Security benefits, a higher payment may push you into a higher tax bracket, though this depends on your total income from all sources.

Some people have their Medicare Part B premium deducted directly from their Social Security payment. Others pay the premium separately. The Social Security Administration will notify you of any changes to your deduction or payment amount before January 2026.

When you will see the 2026 amount

The Social Security Administration mails a benefit statement to everyone receiving benefits in early December each year. This statement shows your new monthly amount starting in January. If you have a my Social Security account online, you can log in and see your 2026 amount before the paper statement arrives. The increase takes effect with your January 2026 payment, which is typically deposited on the third or fourth Wednesday of the month, depending on your birth date.

If you are not yet receiving benefits but plan to start in 2026, the 2.6 percent increase does not affect your decision about when to claim. Your benefit amount at the time you claim is based on your earnings record and your age at claim, not on future COLA increases.

Frequently Asked Questions

Will my 2026 payment be exactly 2.6 percent higher than my 2025 payment?

Yes, the increase is applied uniformly to all benefits. However, if your Medicare Part B premium is deducted from your payment, your net increase (the amount that actually reaches your bank account) may be slightly less than 2.6 percent if your premium also increased.

Can I do anything to get a larger increase?

No. COLA is calculated automatically and applies to everyone uniformly. You cannot request a higher increase or opt out of it. The only way to increase your monthly benefit is to delay claiming if you have not yet started, which increases your benefit by roughly 8 percent per year between your full retirement age and age 70.

Does the 2.6 percent increase apply to Supplemental Security Income (SSI)?

Yes, SSI also receives a COLA increase, though the federal benefit amount and the calculation may differ from Social Security retirement and disability benefits. Some states add money to the federal SSI amount, and those state supplements may have different COLA rules.

What if I disagree with the 2026 amount shown on my statement?

Contact the Social Security Administration at 1-800-772-1213 or visit your local Social Security office. Bring your benefit statement and any documents related to your earnings record. The agency can review your account and correct errors if they exist.