Social Security COLA increase 2026: Benefits set to rise 2.8% in January— How much you could receive

Americans receiving Social Security Administration (SSA) benefits will see their monthly checks increase to fit COLA.

Nearly 75 million Americans receiving Social Security Administration (SSA) benefits will see their monthly checks increase by 2.8 per cent effective December 2025 (payable in January 2026), the agency confirmed on its official site.

Social Security benefits increasing 2.8% in January 2026.(REUTERS)

Here is what you need to know:

What is changing?

The SSA’s official “Cost-of-Living Adjustment” (COLA) for 2026 is set at 2.8 per cent, based on the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

For a typical retiree, the increase works out to about US $56 extra per month on average.

The adjustment applies to recipients of retirement, disability, survivors' benefits and the Supplemental Security Income (SSI) programme. For SSI recipients, the higher rates will begin with the December 31, 2025, payment.

What is the calculation behind 2.8%?

The SSA states that, “A COLA effective for December of the current year is equal to the percentage increase … from the average for the third quarter of the last year a COLA became effective.”

For this year, the CPI-W rose enough to generate the 2.8 per cent adjustment. Since the calculation is precise, there is no guarantee of a raise every year. If CPI-W falls or stagnates, COLA can be zero.

Key points

The increase will NOT be reflected in November payments. The 2.8 per cent raise applies to payments starting January 2026.

The 2.8 per cent increase is automatic under the law. Recipients do not have to apply for it.

The New York Post reported that senior advocacy groups argue it falls short of real inflation for older Americans. The extra $56 per month is modest. Rising costs in housing, medical care and food may still outpace the benefit update.