Anticipated Increase in Social Security Benefits to Reach 2.7% in 2026
The Social Security Administration (SSA) has announced a 2.7% Cost-of-Living Adjustment (COLA) for 2026, slightly above the 2025 COLA of 2.5%. This increase is based on the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter (July, August, and September) of 2025 compared to the same period in 2024.
The SSA calculates the COLA by comparing the CPI-W for the third quarter of the current year with the third quarter of the previous year. This method focuses on a specific consumer price index segment and a fixed three-month comparison period, adjusting Social Security benefits to help recipients keep pace with inflation.
The average estimated monthly increase for a retired couple receiving benefits is $108.36. For a worker with a disability, the average estimated monthly check amount is $1,625.10, while for widows(ers), it is $1,914.90. The average estimated monthly check amount for children of deceased workers is $1,167.86.
The official COLA announcement is typically made in October for the following year. Monthly reports on the Consumer Price Index help organisations like the Senior Citizens League predict the COLA ahead of time. Social Security COLAs take effect in January.
It's worth noting that the standard Medicare Part B premium, which most beneficiaries have deducted directly from their benefit payments, could potentially increase in 2026. Over the past 20 years, the average COLA has been approximately 2.6 percent.
As of July 2025, the average Social Security payment for retired workers was $2,006.69. With the 2.7% COLA increase, this amount is projected to rise to $2,060.87 in 2026, an increase of $54.18.
In April 2025, an estimated 73.9 million people received some form of Social Security benefits. The increase is based on data from the Department of Labor's Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Bankrate's Johna Strickland contributed to an update of this article.
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