Social Security Benefits to Rise 2.8% in 2026 Amid Major Program Changes

For millions of Americans, a modest financial boost is on the horizon. The Social Security Administration has announced a 2.8% cost-of-living adjustment (COLA) for social security benefits starting in 2026, a change that will increase monthly payments for an estimated 75 million people .

This annual adjustment aims to help retiree and disability benefits keep pace with inflation, but it arrives as the program undergoes its most significant structural shift in decades. For the first time, the full retirement age will reach 67 for anyone born in 1960 or later, marking the culmination of a change set in motion 42 years ago .

What the 2026 COLA Means for Your Wallet

The 2.8% increase will translate to an average raise of about $56 per month for retired workers, bringing the average monthly retirement benefit to $2,071, up from $2,015 in 2025 . For married couples both receiving benefits, the average monthly payment will rise by $88 to $3,208 .

“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 Bisignano in an official statement .

The adjustment is calculated based on inflation data from the third quarter of 2024 and 2025, specifically using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) . Over the past 20 years, the average COLA has been 2.6%, making the 2026 figure slightly above average .

The Medicare Offset

However, the net gain for many beneficiaries will be less than the announced COLA. Medicare Part B premiums, which are typically deducted directly from Social Security checks, are projected to rise by approximately $21.50 per month in 2026 . This increase would consume nearly 40% of the average retiree’s COLA, reducing their typical $56 monthly increase to about $34.50 after the Medicare deduction .

Key Dates for 2026 Benefit Increases

The increased social security benefits will begin at different times depending on the type of benefit you receive:

• Social Security beneficiaries will see the increase in their January 2026 payments. The exact date depends on your birth date :
  • Born 1st-10th: Payment arrives January 14, 2026 (second Wednesday)
  • Born 11th-20th: Payment arrives January 21, 2026 (third Wednesday)
  • Born 21st-31st: Payment arrives January 28, 2026 (fourth Wednesday)
• Supplemental Security Income (SSI) recipients will get their first increased payment a few days earlier, on December 31, 2025 .

The Social Security Administration will make COLA notices available online in late November 2025 through the Message Center of personal my Social Security accounts. Beneficiaries who created their account by November 19, 2025, can access their notice digitally instead of waiting for a mailed version .

Working While Receiving Benefits? The Rules Are Changing

For the many Americans who continue working after claiming social security benefits, 2026 brings higher earning limits before benefits are reduced.

The “earnings test” thresholds will increase as follows :

Situation	2026 Earnings Limit	Reduction Rule
Under full retirement age all year	$24,480 annually	$1 withheld for every $2 over limit
Reaching full retirement age in 2026	$65,160 annually	$1 withheld for every $3 over limit until birthday month
At or above full retirement age	No limit	No reduction

These limits represent an increase of $1,080 for those under full retirement age and $3,000 for those reaching full retirement age in 2026 compared to 2025 limits .

It’s important to note that any benefits withheld due to these rules are not permanently lost. Once you reach full retirement age, the Social Security Administration recalculates your benefit to account for the withheld amounts, effectively restoring them through higher monthly payments .

A Milestone: Full Retirement Age Reaches 67

A landmark change coming in 2026 affects anyone born in 1960 or later—your full retirement age will be 67 . This represents the final step in a gradual increase from age 65 that was established by the 1983 amendments to the Social Security Act, designed to reflect longer life expectancies and strengthen the program’s financial foundation .

Your decision on when to claim benefits significantly impacts your monthly check. Claiming at the earliest age of 62 results in a permanently reduced benefit, while delaying past your full retirement age increases your monthly payment by approximately 8% per year until age 70 .

Other Important 2026 Adjustments

Several other changes will take effect in 2026 that impact both current beneficiaries and workers:

• Higher taxable maximum: The amount of earnings subject to Social Security payroll tax will increase to $184,500, up from $176,100 in 2025. Workers pay 6.2% of their earnings up to this limit into the Social Security system .
• Increased cost of credits: The amount needed to earn one Social Security “credit” toward qualification for future benefits will rise to $1,890 in 2026, up from $1,810 in 2025. Workers can earn up to four credits per year, and need 40 credits over their working life to qualify for retirement benefits .

Looking Ahead: A Program at a Crossroads

While the 2026 adjustments provide modest increases, the Social Security program continues to face long-term financial challenges. The Social Security Trustees Report has consistently warned that the program’s trust funds will eventually be depleted without legislative action, potentially leading to reduced benefits .

For now, the 2.8% COLA offers some relief to retirees and disabled Americans struggling with the rising cost of living. As one financial planner noted, for the approximately 40% of older Americans who rely on Social Security as their primary income source, even modest increases can make a significant difference in covering essential expenses.

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