Millions of Americans receiving Social Security are set to see a modest boost in their monthly payments in 2026, as the Social Security Administration (SSA) announced a 2.8 percent cost-of-living adjustment (COLA) on October 24, 2025. The adjustment, which will impact nearly 75 million retirees, disabled workers, and survivors, reflects ongoing inflationary pressures and marks the fifth consecutive year of COLAs at or above 2.5 percent, according to the SSA and reporting from Axios and The Senior Citizens League (TSCL).
For the average retired worker, the COLA translates to a $56 increase in monthly benefits, raising the typical check from $2,015 in 2025 to $2,071 in 2026, as outlined by the SSA. Couples where both spouses receive benefits will see their combined monthly payment rise from $3,120 to $3,208. Other groups, including widowed mothers with children and disabled workers with families, will also notice increases—though many advocates argue the bump is still not enough to keep pace with rising costs.
Supplemental Security Income (SSI) recipients, numbering nearly 7.5 million, will receive increased payments starting December 31, 2025. For most Social Security beneficiaries, the new rates will take effect with January 2026 payments. Notably, some people receive both Social Security and SSI benefits, so they’ll see changes reflected across both programs.
The annual COLA is determined by changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter of the year. In 2025, the CPI-W rose by 2.9 percent in September, 2.8 percent in August, and 2.5 percent in July compared to the previous year, as reported by the Bureau of Labor Statistics. The September CPI data was the final piece needed to calculate the adjustment for 2026.
SSA Commissioner Frank J. Bisignano emphasized the importance of the COLA in a statement, saying, “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.” He described the COLA as “a vital part of how Social Security delivers on its mission.”
Yet, many seniors and advocacy groups remain dissatisfied with the size of the increase. According to a 2025 survey by TSCL, only 10 percent of seniors are satisfied with their monthly Social Security checks, and a striking 94 percent said the 2025 COLA of 2.5 percent was too low to keep up with rising costs. TSCL’s executive director, Shannon Benton, expressed concern, stating, “The 2026 COLA is going to hurt for seniors. Year after year, they warn that Social Security’s meager increases won’t be enough, and the Census Bureau estimates that about 10 percent of retirement-age Americans live in poverty. However, our research suggests that the number may be higher. It’s about time our elected representatives show up for seniors, or else seniors won’t show up for them at the voting booth.”
TSCL’s own model, which predicts COLAs using the Consumer Price Index, Federal Reserve interest rates, and unemployment rates, initially forecasted a 2.1 percent increase for 2026 back in February. However, the group revised its estimate upward throughout the year, citing economic policy changes by the Trump administration—including new tariffs, tax breaks for seniors, and stricter immigration enforcement—that influenced inflation. By August, their projection had reached 2.7 percent, closely aligning with the official figure announced in October.
The dependency on Social Security remains high among older Americans. TSCL’s 2025 study found that 73 percent of seniors rely on Social Security for more than half their income, with 39 percent depending on it entirely. The median senior survives on less than $2,000 a month, highlighting the critical role these benefits play in daily life. For many, even a modest increase can make a difference, but it rarely feels like enough when expenses for essentials such as housing, healthcare, and groceries continue to rise—often outpacing the inflation measure used for COLA.
Lisa Featherngill, national director of strategic wealth & business advisory at Comerica Wealth Management, pointed out, “While this adjustment helps many retirees keep pace, it underscores why relying solely on Social Security isn’t enough.” She noted that costs in key areas like housing and healthcare tend to grow faster than the CPI-W, the index currently used to calculate COLA.
This disconnect has fueled calls for reform. Advocacy groups like TSCL are urging Congress and the administration to consider switching the COLA calculation from the CPI-W to the Consumer Price Index for the Elderly (CPI-E), which better reflects the spending habits of older Americans. “Seniors, and The Senior Citizens League, call on Congress to take immediate action to strengthen COLAs to ensure Americans can retire with dignity, such as instituting a minimum COLA of 3 percent and changing the COLA calculation from the CPI-W to the CPI-E,” Benton said. TSCL’s research suggests that the CPI-E tends to come in higher than the CPI-W about 69 percent of the time, which could result in thousands of dollars in additional benefits over a retiree’s lifetime.
Meanwhile, the Social Security program itself faces longer-term funding challenges. The maximum amount of earnings subject to the Social Security tax—the so-called taxable maximum—will increase to $184,500 in 2026, up from $176,100 in 2025. This adjustment is based on the rise in average wages and is meant to help shore up the program’s finances. Despite such measures, the Social Security trust funds have been running deficits, and trustees project that without congressional action, reserves could be depleted by 2034. At that point, only about 81 percent of scheduled benefits could be paid, raising the stakes for reform even higher.
Some policy experts are floating proposals aimed at closing the solvency gap, such as capping COLA adjustments for the highest-earning retirees. A recent white paper from the Committee for a Responsible Federal Budget suggested that a cap at the 75th percentile could help close one-tenth of the projected shortfall. However, such ideas are sure to be contentious, with critics warning they could undermine the program’s universality and fairness.
For now, Social Security recipients can expect to receive notification of their new benefit amounts by mail starting in early December. Those with a personal my Social Security account can view their COLA notice online, provided they set up their account by November 19. Information about related changes, such as Medicare premiums, will be available at medicare.gov later in the year.
While the 2.8 percent COLA for 2026 offers some relief, the debate over how best to support America’s seniors—and how to keep Social Security solvent for future generations—shows no signs of cooling down.
