The Social Security Administration (SSA) will officially announce the 2026 cost-of-living adjustment (COLA) next month, but experts are already giving retirees a sense of what to expect.
With nearly 68 million Americans relying on Social Security, even a small increase makes a big impact on household budgets.
How much will benefits rise?
The Senior Citizens League (TSCL) projects the 2026 COLA will be 2.7%, slightly higher than the 2.5% increase in 2025, which was among the lowest on record. That would raise the average monthly benefit by about $54, from $2,008 to $2,062.
Independent analyst Mary Johnson is slightly more optimistic, predicting a 2.8% increase, which would mean an average benefit hike of about $56 per month.
Although a bigger bump would help, many seniors still feel the formula used to calculate COLA doesn’t reflect the inflation they actually face, particularly in healthcare and housing costs.
When will the increase take effect?
Beneficiaries will start seeing higher checks in January 2026, with payment dates depending on their birth date:
- Born between the 1st–10th: Jan. 14, 2026
- Born between the 11th–20th: Jan. 21, 2026
- Born between the 21st–31st: Jan. 28, 2026
Other key payment notes:
- Those who have received Social Security since before May 1997 will see their increase on Jan. 3, 2026.
- SSI recipients will get their first higher check on Dec. 31, 2025, since Jan. 1 is a federal holiday.
Other major Social Security changes in 2026
In addition to the COLA, several policy shifts will affect retirees in 2026:
- Full Retirement Age (FRA) rises to 67:
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- For people born in 1959, FRA becomes 66 years and 10 months in late 2025.
- For those born in 1960 or later, FRA reaches 67 in January 2026.
- People born on Jan. 1 should refer to the previous year’s rules.
- Taxable earnings cap increases:
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- The maximum wage base subject to Social Security tax is projected to rise to $183,600 in 2026, up from $176,100 in 2025.
- The official figure will be confirmed in October 2025.
- Earnings test limits rise:
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- For those under FRA in 2026, the annual earnings limit is $24,360. Benefits are reduced by $1 for every $2 earned above that cap.
- For those reaching FRA in 2026, the limit is $64,800. Benefits are reduced by $1 for every $3 earned above the cap until reaching FRA.
- Once you reach FRA, you can earn unlimited income without reducing benefits.
When can you start Social Security?
You can begin claiming Social Security benefits as early as age 62, but you won’t receive the full benefit amount until you hit your full retirement age. Waiting longer, up until age 70, can further increase your monthly benefit.
The official 2026 COLA will be announced on October 15, 2025, after the release of September’s inflation data. While a 2.7%–2.8% boost may not fully match rising costs, it still represents a meaningful increase for millions of Americans.
Retirees should mark their calendars, review their budgets, and keep an eye out for official SSA updates to see exactly how their benefits will change in the new year.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
