This year, the Cost of Living Adjustment (COLA) was delayed a bit longer than usual, but it finally confirmed what was expected. Specifically, on October 24, 2025, the Social Security Administration (SSA) announced that the cost of living adjustment for 2026 would be 2.8%. Therefore, the 2026 COLA will add a few dollars per month, but the Medicare increase will reduce the actual additional income for most retirees. The increase will apply to payments for retirees, survivors, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) benefits for 2026.
Social Security benefit amounts will rise next year thanks to the cost-of-living adjustment (COLA)
To clarify, the Social Security Administration calculates the Cost-of-Living Adjustment (COLA) each year, based on inflation changes, to avoid impacting beneficiaries’ purchasing power. In other words, if inflation rises, Social Security payments will also increase. Therefore, Social Security benefit amounts will rise next year thanks to the cost-of-living adjustment (COLA). With this increase, the average monthly benefit for retirees will rise from $2,015 in 2025 to $2,071 in 2026.
The COLA calculation compares the CPI-W data from the third quarter of the previous year with the data from the third quarter of the current year
In general terms, it was determined that the 2026 Cost-of-Living Adjustment (COLA) will be 2.8%, meaning that Social Security and SSI benefits will increase by that percentage next year. This translates to an official increase of $56 per month. The COLA calculation compares the CPI-W data from the third quarter of the previous year with the data from the third quarter of the current year—that is, the figures for July, August, and September of both years. This is supposed to provide a realistic approximation, according to some.
For those who wish to know their exact amount, the SSA will send notifications in early December
Following the adjustment and looking ahead to 2026, average Social Security payments will be distributed as follows: all retired workers will receive $2,071; a senior couple will receive $3,208; a surviving spouse with two children will receive $3,898; a single surviving senior spouse will receive $1,919; a disabled worker, their spouse, and one or more children will receive $2,937; and all disabled workers will receive $1,630. In any case, for those who wish to know their exact amount, the SSA will send notifications in early December, although those with a ‘my Social Security’ account will be able to check it sooner.
To calculate the amount, you can also add 2.8% to your current benefit. On another note, the Centers for Medicare & Medicaid Services (CMS) announced on November 14, 2025, that the standard premium will increase from $185 to $202.90 in 2026. This increase will apply to Social Security and SSI payments starting in January of next year.
If the Modified Adjusted Gross Income (MAGI) exceeds $109,000 on individual tax returns, the premium will be at least $81.20 higher
It’s important to note that the amounts vary depending on each family’s circumstances. For example, the increases will be even larger for those with higher incomes. If the Modified Adjusted Gross Income (MAGI) exceeds $109,000 on individual tax returns, the premium will be at least $81.20 higher than the standard premium. The SSA is already in the process of notifying beneficiaries of the exact amount they will receive next year.
In short, what experts are saying is that the COLA (Compensation for Older Adults) doesn’t accurately reflect the real expenses of senior citizens. Even though it has increased for next year, it’s clear that the figures don’t match the country’s economic reality. It’s difficult for a retired couple (or individual) to make ends meet on their pension. That’s why they have to rely on extra benefits, SNAP programs, or similar programs to cover their basic needs. Some even have to return to work because they can’t pay their bills at the end of the month.