After a delay, the COLA increase for 2026 is now known. As reported by official sources, it will increase by 2.8% next year. The Social Security Administration (SSA) has announced increases in Social Security benefits, including Old Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) payments for 75 million people in the United States. The cost-of-living adjustment will determine 2026 payments for millions of Americans, but the government shutdown has postponed official data until now.
Past decade: the average cost-of-living adjustment (COLA) increase has been around 3.1%
This is an announcement citizens have been waiting for, as it marks the starting point for payments for the various insurance policies mentioned above. Over the past decade, the average cost-of-living adjustment (COLA) increase has been around 3.1%. This year, in 2025, the COLA has been 2.5%. Following the federal shutdown, the September inflation report that determines the calculation was delayed.
The COLA is an annual increase applied to Social Security and Supplemental Security Income (SSI) benefits
This delayed announcement has taught those who were unaware that in this type of government process, everything is interconnected, and if one part fails, the chain breaks. The COLA is an annual increase applied to Social Security and Supplemental Security Income (SSI) benefits. The purpose of this cost-of-living calculation is precisely to prevent inflation from diminishing the purchasing power of beneficiaries, mostly low-income citizens or those who cannot make ends meet.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one of the ways we work to ensure that benefits reflect the current economy” – Frank J. Bisignano
Specifically, the increased payments for nearly 7.5 million SSI beneficiaries will begin on December 31, 2025. The COLA calculation is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically comparing inflation data from the third quarter of a year with the previous year. “Social Security is a promise kept, and the annual cost-of-living adjustment is one of the ways we work to ensure that benefits reflect the current economy and continue to provide a foundation of security,” said Social Security Commissioner Frank J. Bisignano.
The maximum amount of earnings subject to Social Security taxes (the taxable maximum) will increase from $184,500 to $176,100
According to the schedule, therefore, Social Security (Retirees and Disabled) will make the first payment, with the updated percentage, starting in January 2026. While for Supplemental Security Income (SSI), SSI beneficiaries typically see the increase a little earlier, with the first increased payment in late December 2025. Some of the other adjustments that take effect in January of each year are based on increases in average wages. Based on this increase, the maximum amount of earnings subject to Social Security taxes (the taxable maximum) will increase from $184,500 to $176,100, according to the SSA website.
Important to note: For those enrolled in Medicare, the 2026 premium amount will be available through the my Social Security Message Center
As Frank J. Bisignano says: “The cost-of-living adjustment is critical for Social Security to fulfill its mission.” Hence the importance of this percentage adjustment, which is reflected in income and keeps the wheels of the economy turning. It is also important to note that for those enrolled in Medicare, the 2026 premium amount will be available through the my Social Security Message Center beginning in late November. Those who have not opted to receive messages online will receive their COLA notice by mail in December, as usual. In any case, and if you have any questions, it is advisable to consult official sources.
