Millions of Americans who receive Social Security benefits, including retirees, people with disabilities, and low-income seniors, are expected to get a benefit increase in 2026. While the official announcement will come in October 2025, early estimates suggest that a 2.5% Cost of Living Adjustment (COLA) may be applied next year.
Let’s look at what this means, how the increase is calculated, and how it could affect monthly payments.
What Is COLA and Why It Matters
The Cost of Living Adjustment (COLA) is a yearly increase applied to Social Security benefits. It helps keep benefits in line with inflation, meaning that as prices for food, medicine, and other basic needs go up, your benefit payments also increase.
COLA is very important for people who rely on Social Security as their main or only income source—especially retirees, widows, and people with disabilities.
Who Will Benefit from the 2026 COLA Increase?
The 2026 COLA increase will apply to people who receive:
Social Security retirement benefits
Supplemental Security Income (SSI)
Social Security Disability Insurance (SSDI)
Survivor and widow’s benefits
These increases will officially take effect in January 2026, after the SSA announces the final COLA rate in October 2025.
How Is the COLA Calculated?
The Social Security Administration (SSA) uses a specific formula to calculate the COLA. They look at the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter (July to September) of the year and compare it to the same period from the previous year.
If prices have gone up, the SSA applies a percentage increase to Social Security benefits starting in the following January.
For 2026, the Senior Citizens League (TSCL) estimates that the COLA increase will be around 2.5%, similar to the 2025 adjustment.
What Would the 2.5% Increase Look Like?
Although the exact increase will depend on individual earnings and contribution history, here are estimated increases based on current averages:
Retirees:
Individual benefit: from $1,976 to about $2,025
Couple benefit: from $3,089 to about $3,166
SSI Recipients:
Single recipient: from $967 to about $991
Couple: from $1,450 to about $1,486
These are only general estimates, and actual increases may vary depending on personal income and how much you’ve contributed to Social Security during your working years.
Important Things to Know
While these predictions are helpful for planning, remember that:
The final COLA rate will be announced in October 2025
The increase will begin with payments sent in January 2026
Individual benefit amounts may vary based on income, age, and work history
COLA helps protect the value of your benefits from being eroded by inflation
The 2026 Social Security COLA increase is expected to be around 2.5%, offering a modest boost to millions of Americans. This adjustment is essential for seniors and disabled individuals trying to keep up with rising costs. While the official percentage will only be known in October 2025, early estimates suggest small but helpful increases in monthly benefits, starting January 2026. Whether you receive retirement, SSI, or SSDI payments, this upcoming raise can help protect your buying power and improve your financial security.
