A Cost-of-Living Adjustment (COLA) is an automatic annual increase to Social Security and SSI benefits designed to keep pace with inflation. Congress enacted the COLA provision as part of the 1972 Social Security Amendments, with automatic annual adjustments beginning in 1975.
The SSA calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. Specifically, it compares the average CPI-W from the third quarter (July–September) of the current year to the same period in the previous year.
If prices rose, benefits go up by the same percentage. If prices didn’t rise (deflation), there is no COLA — benefits stay flat.
Based on the increase in the CPI-W from the third quarter of 2024 through the third quarter of 2025, Social Security beneficiaries and Supplemental Security Income (SSI) recipients receive a 2.8 percent COLA for 2026. The SSA announced this on October 24, 2025 — delayed slightly from the usual October 15 date due to a brief federal government shutdown.
The 2026 COLA:
Is higher than the 2025 COLA of 2.5%
Is below the 10-year average COLA of approximately 3.1%
Reflects that inflation has returned to more moderate, near-Federal Reserve target levels after the spikes of 2021–2023
The actual dollar increase depends on your current benefit amount. The 2.8% increase applies to whatever you currently receive.
Benefit Type
2025 Monthly Amount
2026 Monthly Amount
Monthly Increase
Average retirement benefit
$2,015
$2,071
+$56
Average disability (SSDI) benefit
~$1,537
~$1,580
+$43
Average survivor benefit
~$1,510
~$1,552
+$42
Maximum SSI (individual)
$967
$994
+$27
Maximum SSI (couple)
$1,450
$1,491
+$41
Maximum possible retirement benefit (age 70)
~$4,873
~$5,009
+$136
Source: SSA COLA Fact Sheet, October 2025.
To calculate your specific increase: multiply your current monthly benefit by 0.028. For example, a $1,800/month benefit × 0.028 = $50.40 more per month.
For most Social Security recipients who are also enrolled in Medicare, the 2.8% COLA is partially offset by rising Medicare Part B premiums.
The standard Medicare Part B premium rose from $185/month in 2025 to $202.90/month in 2026 — an increase of $17.90/month (9.7%).
Since Medicare Part B premiums are typically deducted directly from Social Security checks, many beneficiaries will see a net increase smaller than the raw COLA suggests:
Scenario
Gross COLA Gain
Medicare Offset
Net Monthly Gain
$1,500 current benefit
+$42
-$17.90
+$24.10
$2,015 (average) benefit
+$56
-$17.90
+$38.10
$3,000 current benefit
+$84
-$17.90
+$66.10
The “hold harmless” provision protects some lower-benefit Social Security recipients — if the Medicare premium increase would reduce your Social Security net payment, the increase is capped so your check doesn’t go down. However, this protection does not apply if you are new to Medicare in 2026 or if you pay premiums directly rather than having them deducted.
One significant 2026 change in the One Big Beautiful Bill Act: a new senior deduction of up to $4,000 for Social Security recipients age 65 and older, applied against income used to calculate whether Social Security benefits are taxable. This deduction applies for tax years 2025 through 2028.
Currently, up to 85% of Social Security benefits are taxable for beneficiaries with “combined income” (AGI + nontaxable interest + half of Social Security benefits) above $34,000 for single filers and $44,000 for joint filers. The senior deduction reduces the income figure used in this calculation, potentially reducing or eliminating the tax on some recipients’ benefits.
This does not eliminate Social Security taxation entirely — it provides partial relief depending on your income.
If you receive Social Security retirement or survivor benefits before reaching your full retirement age (FRA) and you continue to work, the SSA withholds benefits if your earnings exceed the annual limit.
2026 Earnings Limits:
Category
2026 Limit
Withholding Rate
Under FRA all year
$24,480
$1 withheld per $2 earned over limit
Reaching FRA in 2026
$65,160
$1 withheld per $3 earned over limit
At or past FRA
No limit
No withholding — keep all benefits
Important: Withheld benefits are not lost permanently. Once you reach FRA, the SSA recalculates your benefit upward to credit you for the months benefits were withheld.
For SSDI recipients, different rules apply — see the Substantial Gainful Activity (SGA) threshold of $1,620/month for 2026.
Highest since 1981 — post-pandemic inflation spike
2022
5.9%
2021
1.3%
2020
1.6%
2019
2.8%
Same as 2026
2016
0%
No COLA — no inflation
2010, 2011
0%
No COLA — no inflation
The 10-year average COLA (2016–2026) is approximately 3.1%, inflated by the 2022–2023 spikes. Excluding those two years, the typical annual COLA has been closer to 2–2.5%.
SSI recipients: First COLA payment was December 31, 2025
Social Security retirement/disability/survivor: First COLA payment arrived in January 2026 (exact date based on your birthday)
The SSA mails COLA notices in December. You can also view your updated benefit amount online at my Social Security starting in early December — faster and more secure than waiting for the mail.
2026 Social Security Payment Schedule:
Birthdays 1–10: Second Wednesday of each month
Birthdays 11–20: Third Wednesday of each month
Birthdays 21–31: Fourth Wednesday of each month
Legacy beneficiaries (receiving before May 1997): 3rd of each month
The 2027 COLA will be announced in October 2026, based on Q3 2026 CPI-W data. As of early 2026, inflation projections suggest a modest COLA in the 2–3% range, though tariff-driven price increases could push it higher.
Does the COLA affect all Social Security programs equally?
Yes — the same 2.8% COLA applies to retirement benefits, SSDI, survivor benefits, and SSI. Medicare premiums are adjusted separately and may not track with the COLA.
I just started receiving Social Security in 2025. Do I get the 2026 COLA?
Yes — the COLA applies to all beneficiaries receiving benefits at any point during 2025, regardless of when you started. Your January 2026 payment will reflect the 2.8% increase.
My Social Security check went down even though there was a COLA. Why?
Most likely your Medicare Part B premium increased by more than your COLA dollar amount. The net effect can be a smaller check even with a positive COLA. However, the “hold harmless” provision prevents your net Social Security check from going below your previous year’s amount in most cases.
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