Social Security payments will rise in 2026 based on inflation measured in 2025

Every January, the Social Security Administration announces a Cost of Living Adjustment (COLA) that raises monthly benefit amounts. The 2026 COLA will be based on how much prices rose between the third quarter of 2024 and the third quarter of 2025. The exact percentage won't be known until October 2025, when the government releases the final inflation data.

If inflation stays moderate, the increase could be smaller than recent years. If prices rise faster, the adjustment will be larger. Either way, the new payment amount takes effect in January 2026 for all beneficiaries — retirees, disabled workers, and survivors receiving benefits.

You don't need to do anything to receive the increase. It happens automatically. Your new payment amount will appear in your January 2026 deposit, and you'll receive a notice in December 2025 explaining the exact dollar change.

Key Takeaways

  • The 2026 COLA percentage depends on inflation data released in October 2025 and will not be final until then.
  • The adjustment applies to all Social Security beneficiaries — retirees, disabled workers, and family members receiving survivor benefits.
  • You receive the increase automatically in January 2026 with no action required on your part.
  • The Social Security Administration mails a notice in December 2025 showing your new monthly payment amount.
  • If you work while receiving benefits, the earnings test may still reduce your payment until you reach full retirement age.

How the COLA is calculated and announced

The COLA formula uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published monthly by the Bureau of Labor Statistics. The Social Security Administration compares the average CPI-W for July, August, and September of 2024 to the same three months in 2025. The percentage increase between those two periods becomes the COLA.

The announcement happens in October each year. For 2026, the Social Security Administration will release the official COLA percentage on October 10, 2025. This gives beneficiaries two months' notice before the new payment amount takes effect in January.

The COLA can never be zero or negative — if inflation is flat or prices fall, beneficiaries receive no increase, but their payment amount does not decrease. This floor has been in place since 1975.

Who receives the 2026 increase

The COLA applies to everyone receiving a Social Security benefit check. This includes retired workers at age 62 or older, workers who became disabled before reaching retirement age, surviving spouses and children of deceased workers, and surviving parents of workers who died.

If you receive Supplemental Security Income (SSI) — a separate federal program for people with low income and limited resources — you also receive a COLA increase, though the amount may differ slightly because SSI has its own rules about how the adjustment is applied.

The increase is the same percentage for everyone. A person receiving $1,500 per month and a person receiving $3,000 per month both receive the same percentage raise, so the dollar amount of the increase is larger for higher payments.

What changes and what stays the same in 2026

Your monthly payment amount increases, but the rules about how much you can earn while receiving benefits do not change with the COLA. If you are under full retirement age and still working, Social Security reduces your benefit by $1 for every $2 you earn above the annual earnings limit. That earnings limit itself does change each year, but separately from the COLA announcement.

Your Medicare premiums may also change in 2026. The Part B premium (which covers doctor visits and outpatient care) is announced in November and takes effect in January. Some beneficiaries see their Part B premium deducted directly from their Social Security check, so a larger COLA payment might be partially offset by a higher premium.

Taxes on Social Security benefits remain the same. If your combined income (adjusted gross income plus nontaxable interest plus half your Social Security benefits) exceeds certain thresholds, up to 50 percent or 85 percent of your benefits may be subject to federal income tax. The COLA increase may push some beneficiaries over these thresholds for the first time.

When you'll see the increase and how to verify it

The new payment amount appears in your bank account or arrives by check in January 2026. If you receive direct deposit, the money lands on the same day of the month you normally receive it — usually the 3rd, 4th, or 5th, depending on your birth date.

In December 2025, you will receive a notice from the Social Security Administration in the mail. This notice shows your new monthly benefit amount and explains the COLA percentage. Keep this notice for your records, especially if you file taxes or explore for other benefits that depend on your Social Security income.

You can also check your payment amount anytime by logging into your my Social Security account at ssa.gov. This online account shows your current benefit amount, your payment history, and your earnings record. If you don't have an account, you can create one using your email address and Social Security number.

How inflation affects your buying power over time

The COLA is designed to keep your benefits roughly in line with inflation, but it does not always match your personal spending. The CPI-W measures prices for a broad basket of goods and services, including housing, food, transportation, and medical care. If your spending is heavily weighted toward categories that inflate faster than the average — such as healthcare or housing — the COLA may not fully cover your cost increases.

Over many years, even small differences between the COLA and your actual inflation add up. If the COLA averages 2.5 percent per year but your healthcare costs rise 4 percent per year, your benefit covers less of your medical expenses each year. This is why some beneficiaries find their purchasing power gradually declining despite receiving annual increases.

The COLA also does not account for regional differences in cost of living. A retiree in New York City faces different housing and food costs than a retiree in rural Mississippi, but both receive the same percentage increase.

Planning for the 2026 increase in your budget

If you budget based on your current Social Security payment, the 2026 increase gives you a small boost in available funds. Some beneficiaries use the increase to cover rising healthcare costs or property taxes. Others save it or use it to increase spending slightly.

Remember that your Medicare Part B premium may increase at the same time. The net change to your take-home payment depends on both the COLA increase and any premium change. The notice you receive in December will show both figures, so you can see the actual dollar amount hitting your account in January.

If you are still working and receiving benefits, the COLA increase may push your earnings closer to the annual limit where benefits are reduced. Review your expected earnings for 2026 and consider whether the increase in your benefit payment will be partially offset by the earnings test.

Frequently Asked Questions

When will I know the exact 2026 COLA percentage?

The Social Security Administration announces the COLA on October 10, 2025. The percentage is based on inflation data from July through September 2024 compared to the same months in 2025. You'll receive a notice in December 2025 showing your new payment amount.

Can the COLA ever decrease my payment?

No. If inflation is flat or prices fall, you receive no increase, but your payment stays the same. The COLA has a floor at zero — it can never be negative. This rule has been in place since 1975.

Will my Medicare premium increase at the same time as my COLA?

Medicare Part B premiums are announced separately in November 2025 and take effect in January 2026. Some beneficiaries see the Part B premium deducted directly from their Social Security check, which can offset part of the COLA increase. Your December notice will show both your new benefit amount and any premium change.

Does the COLA explore if I'm still working?

Yes, the COLA applies to your benefit amount regardless of whether you work. However, if you're under full retirement age, Social Security reduces your benefit by $1 for every $2 you earn above the annual earnings limit. The COLA increases your benefit, but the earnings test may still reduce it.

How do I check my new payment amount before January?

Log into your my Social Security account at ssa.gov starting in December 2025. Your account will show your updated benefit amount. You can also wait for the notice the Social Security Administration mails in December, which displays your new monthly payment and explains the COLA percentage.