Millions of Americans who receive Social Security benefits are set to see a raise in their monthly checks. According to the Social Security Administration (SSA), a 2.8% cost-of-living adjustment (COLA) for 2026 will increase benefits for over 75 million retirees, SSI recipients, and disabled individuals.
“Social Security benefits and Supplemental Security Income (SSI) payments for 75 million Americans will increase 2.8 percent in 2026,” the SSA said in a statement on October 24.
How Much a 2.8% Social Security Raise Adds to a $2,000 Check
On average, a beneficiary receiving $2,000 per month in Social Security benefits will see an average increase of about $56 per month beginning in January 2026. In a year, the 2.8% COLA will earn beneficiaries approximately $672.
No action will be required from recipients since the SSA applies the COLA automatically. Those who have a “my Social Security” account will get a digital notice in late November, while others will have to wait for a mailed notice in December.
The 2.8% COLA increase will be applied to benefits for December 2025 for recipients of Supplementary Security Income (SSI) who will receive their checks on December 31, 2025, because January 1st is a holiday.
Why Your Actual Deposit Might Be Less Than $56
While the 2.8% COLA will boost your gross benefit, the amount that shows up in your bank account (net deposit) may be smaller. This is because most retirees have Medicare Part B premiums, which automatically deduct from their checks.
The Centers for Medicare & Medicaid Services (CMS) is expected to raise Part B premiums by nearly 12% in 2026. This means that the current premium of $185 will rise to $206.50.
Here is a breakdown of what you will get as a net benefit if you receive $2,000 per month:
- 2025 Social Security benefit: $2,000
- Medicare Part B premium: $185
- Net benefit: $1,815
- 2026 COLA raises benefit to $2,056
- New Medicare premium: $206.50
- New net benefit: $1,849.50
Therefore, if you have a Medicare Part B premium, your net increase is $34.50 and not $56:
- 2025 net payment: $1,815
- 2026 net payment: $1,849.50
Difference:
$1,849.50 – $1,815 = $34.50
How the Social Security COLA Is Calculated
The Social Security COLA is determined each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. The SSA compares average inflation readings from July through September to those from the same quarter the previous year.
If inflation rises, the benefits must rise too to ensure that the purchasing power of retirees is maintained. Through COLA, the SSA ensures that inflation does not erode the standard of living for retirees.
“Social Security is a promise kept,” said SSA Commissioner Frank J. Bisignano, noting that the COLA “ensures benefits reflect today’s economic realities and continue to provide a foundation of security.”
How This Year’s Increase Compares
The 2.8% COLA for 2026 is close to the 10-year average of about 3.1% but many still feel that it doesn’t fully cover the rising costs of goods and services. It is reported that the inflation for essentials such as healthcare, housing, and groceries continues to outpace COLA.
However, the 2026 COLA is an important safeguard especially for retirees who rely heavily on Social Security. Although modest, the adjustment will see retirees receive hundreds of dollars as increments to their annual benefits.
When and How to Check Your New Benefit Amount
You can log in to your “my Social Security” account to view your updated benefit, including your gross payment, Medicare deductions, and net deposit. Those who don’t have an account are encouraged to set up one by November 19.
Those without online access will receive mailed letters in December. Those enrolled in Medicare will see their updated benefit amount on the Message Center section of their online account.
Planning Your Budget for 2026
Financial experts recommend that you review your retirement budget once the new COLA takes effect. If you receive a higher rise than expected, it is wise to direct the extra funds toward:
- Paying down high-interest debt
- Increasing emergency or savings funds
- Covering upcoming expenses like winter heating bills
If your raise is insufficient, especially due to inflation or increased Medicare costs, it is recommended that you look for ways to reduce your monthly expenses. You can also adjust your federal tax withholding through the SSA by choosing 7%, 10%, 12%, or 22% to help balance or spread out your tax payments over the course of the year.