Social Security benefits will rise by 2.8% next year, the Social Security Administration announced Oct. 24.
On average, the cost-of-living adjustment (COLA) translates to an increase of about $56 per month, the agency said. Roughly 71 million people, including retirees and workers with disabilities, receive Social Security payments.
The increased payments will begin in January.
The announcement was made concurrently with the consumer price index for September, which came in at 3% year-over-year. It was due to be made Oct. 15, but was postponed due to the federal government shutdown.
The 2.8% rise in Social Security benefits is higher than the 2.5% rise in 2024 and reflects that inflation has accelerated over the past year.
The Social Security Administration also announced the 2026 wage cap. The maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100.
“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,” Social Security Administration Commissioner Frank J. Bisignano said in a statement.
The administration posted a fact sheet summarizing the 2026 COLA.
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