Social Security payments will increase in 2026 based on inflation measured through September 2025

Every year, Social Security adjusts payments for people already receiving benefits. This yearly adjustment is called a Cost-of-Living Adjustment, or COLA. The 2026 COLA will be announced in October 2025 and will reflect how much prices rose between the third quarter of 2024 and the third quarter of 2025. The exact percentage won't be known until the government releases inflation data in mid-October 2025.

The increase applies automatically to everyone receiving Social Security retirement, survivor, or disability benefits. You don't need to do anything to receive it. Your new payment amount will start in January 2026, and the Social Security Administration will mail a notice in December 2025 showing your new benefit amount.

The COLA also affects other programs tied to Social Security, including Supplemental Security Income (SSI) and Medicare Part B premiums. Some people receiving SSI may see their federal payment increase, though state supplements vary. Medicare Part B premiums are deducted from Social Security payments, so the relationship between the COLA and your actual take-home amount depends on how much your premium changes.

Key Takeaways

  • The 2026 COLA percentage will be announced in October 2025 and is based on inflation data through September 2025.
  • The increase applies automatically to all current Social Security beneficiaries starting in January 2026 with no action required on your part.
  • Your December 2025 notice from Social Security will show your exact new monthly payment amount.
  • Medicare Part B premiums are deducted from Social Security payments, so your actual increase may be smaller than the COLA percentage if premiums rise.
  • SSI recipients may also see an increase, though the amount depends on your state's supplement rules and other income.

How the COLA is calculated and announced

The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures price changes for food, housing, transportation, medical care, and other goods and services. 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 prices have risen, beneficiaries receive a COLA. If prices have fallen, there is no COLA (though this has happened only three times since 1975).

The announcement happens on the second Tuesday in October each year. For 2026, this means the announcement will occur on October 13, 2025. At that time, the Social Security Administration will publish the exact percentage increase on its website and in a press release. News outlets will report the figure widely, so you will likely see it in the media.

The COLA percentage is the same for all beneficiaries — it does not vary based on how much you receive or when you started benefits. A person receiving $1,500 per month and a person receiving $3,000 per month will both receive the same percentage increase, though the dollar amount of the increase will be different.

What the 2026 increase means for your monthly payment

Your new payment amount will appear on your Social Security statement in December 2025. The increase takes effect in January 2026, and you will receive the higher amount starting with your January payment. If you receive your benefits by direct deposit, the new amount will appear in your bank account on your regular payment date in January. If you receive a check, the check will reflect the new amount.

The dollar increase depends on your current benefit amount. If the COLA is 2.5%, for example, someone receiving $1,500 per month would see an increase of $37.50, bringing their payment to $1,537.50. Someone receiving $3,000 per month would see an increase of $75, bringing their payment to $3,075. The percentage is the same, but the dollar amount scales with your benefit.

If you are still working and receiving reduced benefits because you claimed before your full retirement age, the COLA still applies to your benefit amount. However, your payment may be reduced further if your earnings exceed the annual limit set by Social Security. The earnings limit changes each year, and the 2026 limit will be announced at the same time as the COLA.

How Medicare Part B premiums affect your actual increase

For most people receiving Social Security, Medicare Part B premiums are deducted directly from their monthly benefit. This means your actual payment increase may be smaller than the COLA percentage if Part B premiums rise. In some years, the premium increase has been larger than the COLA, leaving beneficiaries with a smaller net payment even though their benefit technically increased.

Medicare Part B premiums are announced in November 2025 for the following year. Once you know both the COLA percentage and the new Part B premium, you can calculate your actual January 2026 payment. The Social Security Administration will include both figures in your December notice, so you won't have to do the math yourself.

If you are not yet enrolled in Medicare or if you have opted out of Part B, the COLA increase goes directly to your Social Security payment with no deduction. People who delay Medicare enrollment or who have coverage through an employer may fall into this category.

Impact on SSI and other benefit programs

Supplemental Security Income (SSI) is a needs-based program for people with low income and limited resources. The federal SSI payment amount increases by the same COLA percentage as Social Security. However, SSI also has income and resource limits that are adjusted each year, and these limits may change by a different percentage than the COLA.

Some states provide a state supplement to the federal SSI payment. These supplements vary widely — some states add a small amount, while others add significantly more. State supplements are not always adjusted by the COLA; some states use a different formula or adjust on a different schedule. If you receive SSI with a state supplement, your state's Social Services or Welfare office can tell you how the 2026 increase will affect your specific payment.

Other programs tied to Social Security, such as Supplemental Nutrition information Program (SNAP) benefits, may use the COLA or a related inflation measure to adjust income limits and benefit amounts. The timing and percentage of these adjustments vary by program.

Planning for the 2026 increase

The COLA increase is modest in most years and may not significantly change your budget. However, if you are living on a tight budget, even a small increase can help cover rising costs. You don't need to take any action to receive the increase, but you should review your December 2025 notice to confirm the new amount is correct.

If you notice an error in your December notice — for example, if the amount seems too low or too high — contact Social Security by phone at 1-800-772-1213 or visit your local Social Security office. You can also create an account on ssa.gov to view your payment information online.

If you are planning major expenses or changes to your budget for 2026, you can wait until October 2025 to learn the exact COLA percentage, or you can estimate conservatively based on recent inflation trends. The Social Security Administration does not release the COLA figure in advance, so the October announcement is the first official confirmation.

Historical COLA increases and what they tell you

COLA increases have varied significantly over the past 20 years. In 2022, the COLA was 8.7%, the highest in four decades, because inflation spiked during the pandemic recovery. In 2023, it was 3.2%. In 2024, it was 3.2% again. In 2025, it is 3.2%. These figures show that COLA increases are unpredictable and depend entirely on inflation during the measurement period.

Looking at historical COLAs can give you a sense of the range, but it cannot predict 2026. Inflation between July and September 2025 will determine the 2026 COLA. If inflation remains moderate, the increase may be in the 2% to 3% range. If inflation accelerates, it could be higher. If inflation slows significantly, it could be lower.

Frequently Asked Questions

When will I know the exact 2026 COLA percentage?

The Social Security Administration announces the COLA on the second Tuesday in October each year. For 2026, the announcement will be October 13, 2025. You will see the percentage in news reports and on the Social Security website. Your December 2025 notice will show how the percentage translates to your specific new payment amount.

Do I need to do anything to receive the 2026 increase?

No. The COLA increase is automatic. You will receive the higher payment starting in January 2026 with no action required. Your December 2025 notice will confirm the new amount.

What if I'm still working and receiving reduced Social Security benefits?

The COLA still applies to your benefit amount. However, if your earnings exceed the annual limit, Social Security will withhold part of your payment. The earnings limit for 2026 will be announced in October 2025 at the same time as the COLA.

Will my Medicare Part B premium increase affect my net payment?

Yes. Part B premiums are deducted from your Social Security payment. If the premium increase is larger than the COLA increase, your actual payment may stay the same or even decrease. The new Part B premium is announced in November 2025, so you will know both figures before January 2026.

How does the 2026 COLA affect SSI?

The federal SSI payment increases by the same COLA percentage. However, income and resource limits also adjust, and state supplements (if you receive one) may adjust differently or on a different schedule. Contact your state's Social Services office for details on how the 2026 increase affects your specific SSI payment.