Hailey
If you receive Social Security benefits, there’s good news for 2026. The Social Security Administration (SSA) has officially announced the Cost-of-Living Adjustment (COLA) for next year, which means a pay raise for millions of retirees.
This annual increase helps seniors keep up with rising prices for groceries, gas, and everyday essentials.
How Much Is the 2026 COLA Increase
For 2026, the official COLA increase is 2.8%. This is slightly higher than the 2.5% raise that retirees received in 2025.
The average Social Security payment for retired workers is currently about $2,008 per month. A 2.8% boost means retirees will get around $56 more every month, bringing the new average benefit to $2,064.
This may not seem like a huge amount, but it can help cover small but necessary expenses—like groceries, medications, or fuel costs—that continue to rise.
How It Compares to Previous Years
While the 2.8% raise is welcome, it’s still modest compared to some past years. The long-term average COLA since 1975 has been around 3.6%. Over the last decade, the average has been closer to 2.8%, which makes the 2026 increase about average.
Here’s a look at the recent trend in COLA increases:
| Year | COLA Percentage |
|---|---|
| 2023 | 8.7% |
| 2024 | 3.2% |
| 2025 | 2.5% |
| 2026 | 2.8% |
Even though the increase is smaller than during the high-inflation period of 2023, it still provides some relief for retirees coping with today’s rising costs.
The 10 States Getting the Highest Boost
While everyone across the country receives the same 2.8% increase, the actual dollar amount depends on the size of a retiree’s monthly benefit. States with higher median incomes tend to have higher Social Security payments, so retirees there will see bigger dollar raises.
Below is a simple look at the 10 states that will see the largest increases:
| State | Median Benefit (Before 2026) | Median Benefit (After 2026) |
|---|---|---|
| New Jersey | $2,099.70 | $2,158 |
| Connecticut | $2,083.70 | $2,142 |
| Delaware | $2,064.00 | $2,122 |
| New Hampshire | $2,039.00 | $2,096 |
| Maryland | $2,007.70 | $2,064 |
| Michigan | $2,004.70 | $2,061 |
| Washington | $1,991.70 | $2,047 |
| Minnesota | $1,981.70 | $2,037 |
| Indiana | $1,952.70 | $2,007 |
| Massachusetts | $1,946.00 | $2,000 |
The differences come from how Social Security calculates payments. It’s based on each person’s highest 35 years of earnings and when they start collecting benefits. Higher-earning workers and those who wait longer to retire generally get higher checks.
Interestingly, states like California and New York, which have high incomes, don’t appear on the list. This may be because many retirees move out of these states to more affordable areas before they begin collecting Social Security.
Key Facts About the 2026 COLA
| Detail | Information |
|---|---|
| Official COLA for 2026 | 2.8% |
| Average Benefit Before | $2,008 per month |
| Average Benefit After | $2,064 per month |
| Effective Month | January 2026 |
| Applies To | All Social Security recipients |
The 2026 Social Security COLA increase of 2.8% might not seem huge, but for millions of American retirees, every dollar helps. It’s a fair raise that reflects moderate inflation and keeps retirement income stable.
If you live in one of the 10 states with higher median benefits, you’ll see a slightly larger dollar increase. Even if the boost doesn’t cover every rising cost, it still makes a difference for those relying on fixed income each month.
FAQs
When will the 2026 COLA take effect?
The 2.8% increase will begin with payments sent in January 2026.
Do all retirees get the same raise?
Everyone gets the same percentage increase, but the dollar amount varies based on their existing benefit.
Can Social Security benefits ever go down?
No. Benefits cannot decrease due to COLA changes. If inflation drops, your payment stays the same.