The 2026 Cost-of-Living Adjustment and Payment Increases

Social Security payments are increasing in 2026 based on the annual cost-of-living adjustment, or COLA. The Social Security Administration calculates COLA each year using inflation data from the third quarter (July, August, September). The 2026 COLA will be announced in October 2025, so the exact percentage is not yet known. Once announced, that percentage applies to all benefit payments starting in January 2026.

The COLA affects everyone receiving Social Security retirement, survivor, or disability benefits. If you receive a payment of $1,500 per month in December 2025 and COLA is 2.5 percent, your January 2026 payment would be approximately $1,537.50. The increase is automatic — you do not need to do anything to receive it. Your payment simply changes on the first day of the month you are due to receive benefits.

Supplemental Security Income (SSI) payments also increase with COLA. The federal benefit rate — the base amount SSI pays — rises by the same percentage as Social Security. Some states add their own supplement to SSI, and those amounts may increase separately or remain flat depending on state law.

Key Takeaways

  • The 2026 COLA percentage will be announced in October 2025 and takes effect on January 1, 2026 for all Social Security and SSI payments.
  • You do not need to take any action to receive the increase — it happens automatically if you are already receiving benefits.
  • The adjustment is based on inflation measured in the third quarter of 2025 and affects retirement, disability, and survivor benefits equally.
  • Medicare Part B premiums may also change in 2026, which can offset some or all of your Social Security increase depending on your situation.

How COLA Is Calculated and Why It Matters

COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. The Social Security Administration compares the average CPI-W for July, August, and September of the current year to the same three months of the previous year. If inflation has occurred, the percentage increase becomes the COLA for the following year.

If inflation is negative (deflation), COLA is zero — benefits do not decrease, but they also do not increase. This has happened only three times since COLA began in 1975: in 2010, 2011, and 2016. In those years, beneficiaries received the same payment amount as the previous year.

The COLA matters because it is your only automatic adjustment to Social Security income. Unlike wages, which may increase through raises or promotions, Social Security does not adjust for individual circumstances. A COLA of 2 percent on a $1,200 payment adds $24 per month, or $288 per year. Over time, these adjustments compound and help protect your purchasing power against inflation.

Medicare Part B Premium Changes and Your Net Increase

Many people who receive Social Security also pay Medicare Part B premiums, which cover doctor visits and outpatient care. These premiums are deducted directly from your Social Security payment each month. In some years, the premium increase is larger than the COLA increase, which means your net payment — the amount you actually receive — stays the same or even decreases.

The 2026 Medicare Part B premium will be announced in November 2025, after the COLA is known. If you are enrolled in Original Medicare (not a Medicare Advantage plan), your premium is deducted from your Social Security check. If the premium rises by more than your COLA increase, your take-home payment will be smaller than it would have been without the premium change.

People with higher incomes pay higher Medicare Part B premiums through Income-Related Monthly Adjustment Amounts (IRMAA). These thresholds are adjusted each year, and the 2026 thresholds will be announced alongside the premium. If your income has changed, you may move into a different IRMAA bracket in 2026.

Changes to Earnings Limits for Working Beneficiaries

If you receive Social Security retirement benefits and continue to work, your earnings are subject to an annual limit. In 2025, that limit is $23,400 per year. For every $2 you earn above the limit, Social Security withholds $1 in benefits. The 2026 earnings limit will be announced in October 2025 and typically increases each year based on wage growth.

The earnings limit applies only in the year you first claim benefits and in years before you reach full retirement age. Once you reach full retirement age, there is no earnings limit — you can work and earn as much as you want without any reduction to your benefits. The month you reach full retirement age, the limit applies only to earnings before that month.

If you are self-employed, your net business income counts toward the earnings limit. If you are an employee, only wages you receive count — not investment income, pensions, or other non-work income. Keep records of your earnings throughout the year so you can report them accurately when Social Security asks.

Bend Points and Benefit Calculation Updates

Social Security calculates your benefit amount using "bend points," which are dollar thresholds that determine how much of your average earnings converts to a monthly payment. These bend points change each year based on wage growth. The 2026 bend points will be announced in October 2025.

Bend points matter if you are newly claiming benefits in 2026 or if you are recalculating your benefit due to additional earnings. If you have already been receiving benefits for years, your payment amount does not recalculate based on new bend points — your benefit is locked in at the amount you were awarded. However, your payment still increases by COLA each year.

If you continue working after claiming benefits, you can request a recalculation once per year. Social Security will add your new earnings to your record and recalculate your benefit if the new earnings increase your average. This recalculation uses the bend points in effect for the year you request it.

Supplemental Security Income (SSI) Federal Benefit Rate for 2026

The federal SSI benefit rate is the maximum monthly payment for a single person with no other income. In 2025, the federal rate is $943 per month for an individual and $1,415 for a couple. The 2026 rate will increase by the same COLA percentage as Social Security, announced in October 2025.

SSI has strict income and resource limits. Your countable income cannot exceed the federal benefit rate, and your resources (cash, bank accounts, and certain other assets) cannot exceed $2,000 for an individual or $3,000 for a couple. These resource limits do not change with COLA — they remain the same year to year. However, some states set their own SSI supplement, and those states may adjust their resource limits separately.

If you receive SSI and your income increases in 2026 — whether from work, a raise, or other sources — your SSI payment may decrease or stop. Report any income changes to your local Social Security office within 10 days. Failing to report can result in overpayments that you will be required to repay.

What to Expect in Your Social Security Statement

Your Social Security statement shows your earnings history and estimates of your future benefits. You can view your statement online at ssa.gov by creating a my Social Security account. The statement updates once per year, usually in the month of your birthday.

After the 2026 COLA is announced in October 2025, the Social Security Administration will update all benefit estimates in online statements. If you are not yet claiming benefits, your statement will show a new projected monthly amount based on the 2026 bend points and COLA. If you are already receiving benefits, your statement will reflect your new payment amount starting January 2026.

Your statement also shows your earnings record — the wages you reported to Social Security each year. Review this carefully for errors. If you spot a mistake, contact Social Security to correct it. Errors in your earnings record can lower your benefit amount.

Frequently Asked Questions

When will I see the 2026 increase in my payment?

The increase takes effect January 1, 2026. If you receive benefits on the third Wednesday of each month (the standard payment day), your first increased payment will arrive in early January 2026. If you receive payments on a different day, the increase appears on your regular payment date in January.

What if I'm still working — will the earnings limit affect my 2026 benefits?

Yes, if you are under full retirement age and earning above the 2026 limit (to be announced in October 2025), Social Security will withhold $1 for every $2 you earn over the limit. Once you reach full retirement age, the limit no longer applies. Report your earnings to Social Security to ensure your payments are calculated correctly.

Can I find out the 2026 COLA before October 2025?

No. The COLA is calculated using inflation data from July through September 2025 and is not announced until October 2025. Some websites publish estimates based on recent inflation trends, but these are predictions, not official figures. The Social Security Administration will announce the official 2026 COLA in October.

Will my Medicare premium increase eat up my COLA raise?

It depends on how much the premium increases. The 2026 Medicare Part B premium will be announced in November 2025. If the premium increase is larger than your COLA increase, your net payment (after the premium is deducted) may not increase or may even decrease. You will know the exact amounts once both are announced.

Do I need to do anything to receive the 2026 increase?

No. If you are already receiving Social Security or SSI, the increase is automatic. You do not need to contact Social Security, submit paperwork, or take any action. Your payment simply increases on January 1, 2026.