The most anticipated announcement of the year is finally here and seniors across the country can finally breathe a sigh of relief. The highly anticipated announcement in question is, of course, the annual COLA announcement which has revealed the exact figure by which all benefit amounts will be increased in the new year.
After delays of a little over a week due to the federal government shutdown, the 2026 COLA increase has finally been revealed. Starting in January 2026, seniors spanning the country will receive a 2.8% increase to their benefits. Alongside the benefit increase, the Social Security Administration (SSA) will also share a number of other changes that will take effect alongside the COLA increase in January 2026. Here is what you need to know.
A COLA of 2.8% — what does it entail?
At present, the average benefit check comes in at around $2,008. Now that the 2026 COLA has officially been announced at 2.8%, a retiree earning the average benefit should see around $56 more in their benefit check as of January.
“Over the last decade the cost-of-living adjustment (COLA) increase has averaged about 3.1 percent. The COLA was 2.5 percent in 2025,” the SSA noted in its latest update.
The official COLA figure was not too far off from the latest projections. The Senior Citizens League had estimated a COLA of 2.7% based on July’s CPI, and this estimation remained steady following the release of August’s CPI. Independent analyst and Social Security and Medicare expert Mary Johnson had last estimated a COLA of 2.8% and as such, Johnson was spot on with her projections.
Since the COLA is a percentage increase, the actual dollar amount that beneficiaries will receive will differ from one person to the next. By early December, however, the agency will begin mailing out personalised notices to all of its beneficiaries. This notice will outline the exact amount each respective beneficiary will receive in benefits starting in January 2026. Social Security beneficiaries who have my Social Security accounts can also view their COLA notice online as this “is secure, easy, and faster than receiving a letter in the mail.”
The SSA does also note that, “you will need to have a personal my Social Security account by November 19 to see your COLA notice online.”
The COLA is implemented across all benefits issued by the SSA, and for the Supplemental Security Income recipients, the COLA increase will be reflected in their checks at the end of December. This is because the January 2026 SSI is scheduled to be paid at the end of December 2025 due to January 1st being a holiday.
”For Medicare enrollees, the 2026 premium amount will be available via my Social Security Message Center starting in late November,” the SSA further notes.
Other Social Security changes to be implemented in the new year
In addition to increases to benefits, the new year will also bring with it changes to various limits and income thresholds. The retirement earnings limit will likely increase, along with the maximum taxable income or wage cap. Changes to these limits are often determined relative to changes in average wages.
In its update, the SSA notes the following: “Some other adjustments that take effect in January of each year are based on the increase in average wages. For example, the maximum amount of earnings subject to the Social Security tax (taxable maximum) is slated to increase to $184,500 from $176,100.”
This means that when you are paying a percentage of your earnings into the Social Security payroll tax, a higher portion of your income will now be considered. This will mainly impact those who had been earning right at the wage cap or higher.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” said Social Security Administration Commissioner Frank J. Bisignano in the Oct 24th update. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”