Social Security is a vital source of income for millions of Americans throughout the country. With that being said, a little more money added to benefits won’t hurt. Recently, the government announced the 2026 Cost-of-Living Adjustment (COLA) and it was found that some states will actually see bigger increases than others. It’s important to understand what this means and how it works.
Why Are Social Security Payments Going Up?
Every year, the Social Security Administration (SSA) relooks at Social Security benefits and make changes to help beneficiaries keep up with the rising costs of the economy.
The COLA for 2026 was announced to be approximately 2.8%. Simply put, this means that retirees will receive a little extra money in their monthly benefit as of 2026. It’s important to remember that the actual amount is different in many states. The reason for this is because in states where retirees earned more during their working years, they will most likely receive slightly more in benefits.
Which States Seeing the Biggest Increases?
- Connecticut
- Average Increase: $60.66
- New Average Monthly Benefit: $2,227.05
In Connecticut, Social Security recipients will actually see the highest increase in the country. This can help cover essential expenses such as housing, groceries and medical care.
- New Jersey
- Average Increase: $60.57
- New Average Monthly Benefit: $2,223.74
In the state of New Jersey, retirees are also seeing a fairly high increase. The cost of living in New Jersey is high; therefore, this extra money can serve as a big help because many seniors struggle with high property taxes and expensive healthcare.
- New Hampshire
- Average Increase: $60.11
- New Average Monthly Benefit: $2,206.90
In New Hampshire, this extra cash can help retirees better manage monthly expenses.
- Delaware
- Average Increase: $59.97
- New Average Monthly Benefit: $2,201.81
Delaware is a popular retirement destination especially for those who are relocating from states such as Pennsylvania and New York. Delaware retirees will see increases of almost $60.
- Maryland
- Average Increase: $58.96
- New Average Monthly Benefit: $2,164.77
Maryland rounds out the top five. Retirees here will see their average monthly checks grow by about $59, bringing them to $2,164.
Why Some States Get More Than Others
What’s important to remember is that everyone receives the same percentage of increase of Social Security benefits, throughout the country. The difference is that some people already receive higher monthly payments because of their earnings throughout their working years. Therefore, the COLA increase will boost their monthly benefits by slightly more than others.
What the Raise Means for Retirees
Since there are many families living on fixed incomes, every little bit counts. Whether the increase is small or large, it can help with increasing costs of groceries, housing and medical care. However, experts warn that the COLA increase might not be enough to completely offset inflation, especially in areas where living costs continue to rise quickly.
Many financial experts encourage retirees to plan their budget accordingly and use the extra money wisely. Retirees are urged to pay of existing debts and save money for any emergencies.
A Small but Helpful Boost
Even though the 2026 COLA doesn’t seem like much, it makes a difference to those who live on fixed incomes. For those in states like Connecticut, New Jersey, and New Hampshire, the higher increases will assist in keeping up with the rising cost of living.
It’s important to remember that inflation will continue to impact the prices goods and services and these increases are important to help retirees get by. Even though this extra bit might not solve every financial problem, it still offers a bit of financial assistance to those who need it the most.
If they need to, beneficiaries should consult with a financial advisor to assist with financial planning during retirement.