The Social Security Administration calculates COLA using third-quarter inflation data from the prior year, announcing the rate each October. The 2.8% hike exceeds 2025’s 2.5% increase but remains well below the historic 8.7% jump in 2023, when inflation peaked. Nearly 71 million Social Security beneficiaries will see higher payments, with total recipients affected—including SSI—approaching 75 million Americans.
However, much of the raise may be offset by higher Medicare costs. Medicare Part B premiums are projected to rise to about $202.90 per month in 2026, up from $185 in 2025. For the average retiree, that means the $56 COLA gain is reduced by roughly $18, resulting in a net monthly increase of about $38 before considering other healthcare expenses.
Higher-income retirees face steeper impacts due to IRMAA surcharges, with some paying $284 or more per month for Part B, sharply reducing their COLA benefit. By contrast, low-income beneficiaries protected by the hold-harmless rule will have premiums capped at their COLA increase, preserving most or all of their gain. Rising Part D and Medicare Advantage costs could further erode take-home benefits for many retirees in 2026.
The Department of Labor’s Bureau of Labor Statistics tracks inflation, which informs how much Social Security benefits rise each year. Historically, the average COLA over the past 20 years has been about 2.6%, while the highest recent increase was 8.7% in 2022.
How much Social Security checks will increase in 2026
For the average retiree, Social Security payments will rise by roughly $56 per month, reaching $2,064 in January 2026. Spousal benefits will see an average increase of $27, moving from $954 to $981 per month. Survivor benefits are expected to rise by $44 per month, from $1,575 to $1,619. Disabled workers will also see a $44 monthly increase, from $1,586 to $1,630.
These adjustments ensure that all beneficiaries receive payments that reflect current economic realities. For those relying on Social Security as a primary source of income, these changes provide a small but meaningful boost in their monthly budget.The typical 2025 Social Security benefit of $2,008 faces a $185 Part B premium, yielding about $1,823 net monthly. In 2026, the 2.8% COLA raises it to $2,064, but the premium climbs to $202.90 (up $17.90), netting roughly $1,861—a $38 gain.
Social Security rules also set earnings limits for beneficiaries who continue to work before reaching full retirement age. In 2026, individuals under full retirement age who continue working can earn up to $24,480 annually without penalty. Those who will reach full retirement age during the year have a higher limit of $65,160. Earnings above these limits can temporarily reduce benefits until retirement age is reached.
This adjustment ensures that working beneficiaries are not unfairly penalized while still providing a safety net for those relying on Social Security.
Why does the 2026 COLA increase matter for Americans?
The 2.8% COLA adjustment highlights how Social Security adapts to inflation. While the increase is modest, it helps millions of Americans manage essential expenses, including housing, healthcare, and daily living costs. Social Security remains a cornerstone of financial security for older Americans and those with disabilities.
Commissioner Frank J. Bisignano emphasized that “Social Security is a promise kept,” with annual adjustments ensuring benefits reflect today’s economic realities. While the increase may not fully cover rising costs, it continues to provide a foundation of financial stability for seniors and vulnerable populations.
FAQs:
Q: How much will Social Security checks increase in 2026? A: Social Security payments will rise by about 2.8% in 2026. The average retiree will see an increase of $56 per month, bringing the typical monthly check to approximately $2,064. Spousal benefits rise to $981, while survivor and disabled worker benefits increase to $1,619 and $1,630, respectively.
Q: What are the 2026 earnings limits for working Social Security beneficiaries?
A: Individuals under full retirement age can earn up to $24,480 annually without penalty. Those reaching full retirement age in 2026 have a higher limit of $65,160. Earnings above these limits temporarily reduce benefits until full retirement age is reached, ensuring working beneficiaries are not unfairly penalized while maintaining Social Security support.