Social Security announces 2.8 benefit increase for 2026

BALTIMORE (AP) — The Social Security Administration announced Thursday that Social Security benefits will increase 2.8% in 2026, affecting 75 million Americans.

Nearly 71 million Social Security beneficiaries will see the cost-of-living adjustment beginning in January 2026. Increased payments to nearly 7.5 million people receiving Supplemental Security Income will begin Dec. 31, 2025.

On average, Social Security retirement benefits will increase by about $56 per month starting in January. The COLA was 2.5% in 2025 and has averaged about 3.1% over the last decade.

"The cost-of-living adjustment is a vital part of how Social Security delivers on its mission," said Social Security Administration Commissioner Frank J. Bisignano.

The maximum amount of earnings subject to the Social Security tax will increase to $184,500 from $176,100.

Social Security will begin notifying people about their new benefit amount by mail starting in early December 2025. Beneficiaries with my Social Security accounts can view their COLA notices online.

The COLA is tied to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers as determined by the Department of Labor's Bureau of Labor Statistics.