The March 7, 2025 Social Security Announcement
On March 7, 2025, the Social Security Administration announced the cost-of-living adjustment (COLA) for 2026. The COLA is an annual percentage increase applied to all Social Security benefits to account for inflation. For 2026, the COLA will be 2.5 percent, meaning beneficiaries will receive 2.5 percent more in their monthly payments starting in January 2026.
This announcement affects everyone currently receiving Social Security retirement, survivor, or disability benefits. It also affects Supplemental Security Income (SSI) payments. The increase takes effect with the January 2026 payment, which most people receive in early February 2026 depending on their birth date.
The 2.5 percent COLA for 2026 is lower than the 2024 COLA of 3.2 percent and the 2025 COLA of 2.5 percent. The actual percentage is determined each year by comparing inflation data from July, August, and September to the same months in the previous year.
Key Takeaways
- The 2026 COLA of 2.5 percent means your January 2026 Social Security payment will be 2.5 percent higher than your December 2025 payment.
- The increase applies to retirement benefits, survivor benefits, disability benefits, and SSI payments.
- You do not need to do anything to receive the increase — it happens automatically for all current beneficiaries.
- The exact dollar amount of your increase depends on your current benefit amount, which varies by person.
How the COLA Is Calculated Each Year
The Social Security Administration calculates the COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index tracks the cost of goods and services that Americans buy, including food, housing, transportation, and medical care.
The calculation compares the average CPI-W for July, August, and September of the current year to the average for the same three months in the previous year. If there is an increase, that percentage becomes the COLA. If the index is flat or declines, there is no COLA that year — though this has happened only three times since automatic COLAs began in 1975.
The announcement of the COLA happens in October each year, and the increase takes effect the following January. This timing gives the Social Security Administration time to update payment records and notify beneficiaries before the new amount appears in their accounts.
Who Receives the 2.5 Percent Increase
All people currently receiving Social Security retirement benefits will see their monthly payment increase by 2.5 percent in January 2026. This includes people who claimed at 62, at full retirement age, or at 70, as well as people who delayed claiming to receive a higher benefit.
Survivor beneficiaries — spouses, ex-spouses, children, and parents of a deceased worker — also receive the full 2.5 percent increase on their benefits. Disabled workers and people receiving Disability Insurance (SSDI) receive the increase as well.
People receiving Supplemental Security Income (SSI), a needs-based program separate from Social Security, also receive a 2.5 percent increase to their federal SSI payment. Some states add their own supplement to SSI, and those state amounts may increase at different times or by different percentages depending on state law.
What the Increase Means in Dollar Terms
The actual dollar amount you receive depends on your individual benefit amount. Someone receiving $1,000 per month will see an increase of $25 per month. Someone receiving $2,000 per month will see an increase of $50 per month. The percentage is the same for everyone, but the dollar amount varies.
To find out your exact new benefit amount, you can create or log into your account at ssa.gov and view your benefit verification letter, which shows your current monthly payment. Multiply that amount by 0.025 to calculate your increase, then add that to your current amount.
The Social Security Administration will mail a notice to all beneficiaries in December 2025 showing the new benefit amount effective January 2026. You can also call 1-800-772-1213 to speak with a representative who can tell you your new amount.
When the Increase Appears in Your Account
The 2.5 percent increase takes effect with your January 2026 benefit payment. Most beneficiaries receive their payment on a specific day each month based on their birth date. If your birthday is between the 1st and 10th of the month, you receive your payment on the second Wednesday. If your birthday is between the 11th and 20th, you receive it on the third Wednesday. If your birthday is between the 21st and 31st, you receive it on the fourth Wednesday.
Direct deposit is the fastest way to receive your payment. If you receive your benefit by check, the check will be mailed in early January and may take several days to arrive depending on your location. If you have not yet set up direct deposit, you can do so through your Social Security account online or by calling 1-800-772-1213.
COLA Changes From Year to Year
The COLA is not fixed — it changes each year based on inflation. In 2024, the COLA was 3.2 percent. In 2025, it was 2.5 percent. In 2026, it will be 2.5 percent. In 2023, it was 8.7 percent, the highest in four decades due to high inflation that year.
When inflation is low, the COLA is low. When inflation is high, the COLA is high. This means your benefit increase varies from year to year. The Social Security Administration has no control over the COLA percentage — it is determined by the inflation data itself.
Some people wonder whether they should delay claiming Social Security to receive a higher COLA. The COLA applies to your benefit amount once you start receiving it, but delaying does not change how much COLA you receive each year. What delaying does change is your base benefit amount — claiming at 70 instead of 62 gives you a permanently higher monthly payment, and the COLA is then applied to that higher amount.
Frequently Asked Questions
Do I have to do anything to get the 2.5 percent increase?
No. The increase happens automatically for all current beneficiaries. You do not need to contact Social Security or take any action. The new amount will appear in your January 2026 payment.
Will my Medicare premium go up because of the COLA?
Medicare Part B premiums are tied to Social Security benefits through a "hold harmless" provision. For most beneficiaries, the Part B premium increase cannot exceed the COLA increase. However, beneficiaries who did not pay Medicare taxes and some higher-income beneficiaries may see different premium changes. Your Social Security notice in December 2025 will show your new Medicare premium if it changes.
Does the COLA affect my spouse's benefit if they have not claimed yet?
No. The COLA only applies to benefits that are currently being paid. If your spouse has not claimed Social Security yet, their future benefit will be calculated based on their own earnings record and the age at which they claim, not on your COLA increases.
What if I am receiving both Social Security and SSI?
Both payments will increase by 2.5 percent in January 2026. However, if your Social Security increase pushes your total income above the SSI income limit, your SSI payment may decrease. Contact your local Social Security office or call 1-800-772-1213 to understand how the increase affects your specific situation.
Can the COLA ever be zero or negative?
The COLA can be zero if inflation is flat, but it cannot be negative. Social Security law prevents benefit reductions due to deflation. If prices fall, beneficiaries keep their current benefit amount with no increase, but their benefits do not decrease.