The 2026 Social Security COLA will be 2.6 percent

The Social Security Administration announced in October 2025 that the 2026 Cost of Living Adjustment (COLA) is 2.6 percent. This means that starting in January 2026, Social Security benefit payments will increase by 2.6 percent across all benefit types — retirement, survivor, and disability benefits.

The COLA is calculated each year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation. The Social Security Administration compares the average CPI-W for July, August, and September of the current year to the same three months from the previous year. If inflation has risen, benefits rise with it. If inflation has fallen or stayed flat, the COLA can be zero, but it never decreases.

This 2.6 percent increase is smaller than the 2025 COLA of 3.2 percent, which reflected higher inflation in 2024. It is larger than the 2024 COLA of 8.7 percent, which was the highest in four decades.

Key Takeaways

  • The 2026 COLA of 2.6 percent applies to all Social Security beneficiaries starting with the January 2026 payment.
  • Your new benefit amount will be your current benefit multiplied by 1.026, though the exact dollar increase depends on what you currently receive.
  • Supplemental Security Income (SSI) federal benefit rates also increase by 2.6 percent in 2026, and the earnings exclusion rises from $65 to $67 per month.
  • Medicare Part B premiums, deductibles, and out-of-pocket limits typically change each year, so your net benefit increase may differ from the 2.6 percent COLA.
  • The COLA does not affect when you can start benefits or how much you earned in your work history — only the dollar amount you receive each month.

How the 2.6 percent increase affects your monthly payment

The 2.6 percent COLA is applied to your current benefit amount. If you receive $1,500 per month in 2025, your 2026 benefit will be approximately $1,539 per month — an increase of about $39. If you receive $2,000 per month, your 2026 benefit will be approximately $2,052 — an increase of about $52.

The exact dollar amount you receive depends on your current benefit, which is based on your earnings record, your age when you started benefits, and whether you are receiving retirement, survivor, or disability benefits. The Social Security Administration will send you a notice in December 2025 showing your new benefit amount for January 2026.

If you have not yet started benefits, the COLA does not change your benefit calculation. Your benefit is based on your lifetime earnings and the age you choose to start. However, if you delay starting benefits past your full retirement age, your benefit grows by 8 percent per year until age 70, which is separate from the COLA.

Medicare premiums and the hold harmless rule

Most Social Security beneficiaries are enrolled in Medicare Part B, and Medicare premiums are deducted directly from their Social Security payment. The 2026 Medicare Part B standard premium has not yet been announced as of October 2025, but it typically increases each year.

The hold harmless rule protects most beneficiaries from a situation where the Medicare premium increase is larger than the COLA increase. Under this rule, your Social Security payment cannot decrease even if the Medicare premium rises. However, the rule does not may provide that your full COLA increase reaches your bank account — some or all of it may go toward the higher premium.

Beneficiaries who are not yet on Medicare, who have Medicare coverage through a current employer, or who are new to Social Security in 2026 are not protected by the hold harmless rule. They pay the full Medicare premium increase regardless of the COLA amount.

Supplemental Security Income (SSI) and the 2026 COLA

The 2.6 percent COLA also applies to Supplemental Security Income (SSI) federal benefit rates. The SSI federal benefit rate for an individual will increase from $943 per month in 2025 to $967 per month in 2026. For a couple, the rate increases from $1,415 to $1,451 per month.

SSI is a needs-based program for people aged 65 and older, blind, or disabled with limited income and resources. Unlike Social Security retirement or disability benefits, SSI does not depend on your work history. The COLA affects the income and resource limits used to determine SSI may be able to access, and it affects the maximum monthly payment amount.

The earnings exclusion for SSI also increases with the COLA. In 2026, the first $67 of monthly earnings (up from $65 in 2025) will not count toward the SSI income limit. This means SSI beneficiaries who work can earn slightly more before their SSI payment is reduced.

When you will see the 2026 COLA in your payment

The 2026 COLA takes effect with the January 2026 Social Security payment. Most beneficiaries receive their payment on the third Wednesday of each month, so the first payment with the increased amount will arrive in mid-January 2026. If you receive SSI, the increase takes effect on January 1, 2026.

You do not need to do anything to receive the increase. The Social Security Administration applies it automatically to all beneficiaries. You will receive a notice in December 2025 or early January 2026 showing your new benefit amount.

If you are not yet receiving benefits and plan to start in 2026, your benefit will be calculated using the 2026 bend points and other factors that change each year. The COLA does not directly affect your starting benefit calculation, but the bend points (the dollar amounts used to calculate your Primary Insurance Amount) do change with the COLA.

How COLA is calculated each year

The Social Security Administration calculates the COLA by comparing the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September of the current year to the same three months from the prior year. The percentage increase becomes the COLA for the following year.

The CPI-W measures the average change in prices paid by urban wage earners and clerical workers for goods and services, including food, housing, transportation, and medical care. It does not measure prices for all consumers — it focuses on workers in urban areas who earn wages or salaries. This is why the COLA may not match the inflation rate you personally experience.

Congress sets the formula for calculating COLA, and the Social Security Administration has no discretion to adjust it. The COLA is announced in October each year, and it takes effect the following January. If inflation is zero or negative, the COLA is zero — benefits do not decrease.

Frequently Asked Questions

Will the 2026 COLA affect my Medicare coverage or my out-of-pocket costs?

The COLA does not change your Medicare coverage type or benefits. However, Medicare Part B premiums, deductibles, and out-of-pocket limits typically increase each year. Your net benefit increase depends on how much Medicare costs rise relative to the 2.6 percent COLA. The hold harmless rule protects most beneficiaries from a net decrease in their Social Security payment, but it does not may provide your full COLA increase reaches your bank account.

Does the 2026 COLA affect people who have not started Social Security yet?

The COLA does not change when you can start benefits or how your benefit is calculated based on your earnings record. However, the bend points used to calculate your Primary Insurance Amount change each year with the COLA. If you delay starting benefits, your benefit grows by 8 percent per year until age 70, which is separate from the COLA.

What if I am receiving both Social Security and SSI?

Both your Social Security benefit and your SSI federal benefit rate increase by 2.6 percent in 2026. However, SSI is a needs-based program, so the increase in your Social Security payment may reduce your SSI payment dollar-for-dollar. The income and resource limits for SSI also increase with the COLA, which may affect your may be able to access.

Can I find out my exact 2026 benefit amount before January?

The Social Security Administration will send you a notice in December 2025 showing your new benefit amount for January 2026. You can also create a my Social Security account at ssa.gov to view your benefit estimate and other account information. The notice will show the exact dollar amount you will receive starting in January.

Does the COLA explore if I am still working and receiving Social Security?

Yes, the COLA applies to all beneficiaries regardless of whether you are working. However, if you have not yet reached your full retirement age and you earn more than the annual earnings limit, your benefit will be reduced by $1 for every $2 you earn above the limit. The earnings limit also changes each year, and it will be announced in late 2025 for 2026.