Social Security Administration Reveals 2026 COLA Increase Amid Inflation Concerns

Social Security Administration Announces 2026 COLA Increase

The Social Security Administration on Friday disclosed a 2.8% cost-of-living adjustment (COLA) set for 2026. This increase will see an automatic boost in monthly payments for approximately 71 million beneficiaries starting early next year. The rise reflects an increase from the previous year, where the 2025 COLA was established at 2.5%.

Implications of Inflation on Social Security

With inflation measures edging higher this year, particularly highlighted by the Labor Department reporting a 3% annual increase in the Consumer Price Index as of September, the upcoming COLA increase is a crucial adjustment for retirees.

Details of the COLA Increase

• The average Social Security payment will increase by about $56.
• This raises the average monthly benefit to $2,071, effective January.
• Supplemental Security Income (SSI) recipients will also see the COLA reflected in their checks starting December 31, 2025.

The annual COLA aims to help seniors and disabled Americans preserve their purchasing power against inflationary pressures. However, a recent AARP poll indicates that many seniors feel the Social Security adjustments fall short of their needs, expressing a desire for a 5% annual COLA to effectively manage daily expenses.