Each January the RRB applies a cost-of-living adjustment to railroad annuities. Here are the verified 2026 numbers and what they mean.
What is the 2026 railroad retirement COLA?
Effective January 2026, the Tier 1 portion of railroad retirement annuities increased 2.8%, matching the Consumer Price Index rise also used for Social Security. The Tier 2 portion increased 0.9%, equal to 32.5% of the CPI rise, under the Railroad Retirement Act's formula. As a result, the average regular railroad retirement employee annuity rose about $80 a month to $3,636, and the average combined annuity for an employee and spouse rose about $112 to $5,249, according to the Railroad Retirement Board. These increases are automatic; annuitants don't need to apply for them.
How does the COLA affect survivors and Medicare?
For aged widow(er)s eligible for an increase, the average annuity rose about $50 a month to $2,109 in 2026, per RRB.gov. However, about 29% of widow(er)s paid under the Railroad Retirement and Survivors' Improvement Act of 2001 may not receive a COLA in a given year, depending on how their amount compares to prior-law calculations. Keep in mind that COLA gains can be partly offset by Medicare Part B premiums, which are usually deducted from your annuity. To make sure rising premiums don't erase your raise, call 1-800-MEDIGAP (1-800-633-4427) to review your Medicare and Medigap coverage for free.