The annual cost-of-living adjustment protects your Social Security check from inflation. Here is exactly what the 2.8% 2026 COLA means for you.
How much is the 2026 Social Security COLA?
The Social Security cost-of-living adjustment for 2026 is 2.8%, announced by the Social Security Administration in October 2025 and effective with payments starting January 2026. The COLA is calculated from the Consumer Price Index for Urban Wage Earners (CPI-W), comparing the third quarter of 2025 with the prior year. For the average retired worker receiving about $2,000 monthly, the 2.8% increase adds roughly $56 a month, or about $670 a year. Every Social Security and SSI recipient receives the same percentage increase.
Why is my COLA raise smaller than expected?
Many seniors see less than the full 2.8% in their deposit because the Medicare Part B premium is deducted directly from their Social Security check. When Part B premiums rise, that increase eats into the COLA. The net raise also depends on whether more of your benefit becomes taxable, since the income tax thresholds for Social Security are not indexed for inflation. Reviewing your Medicare plan each year, especially Part D and Medigap, helps you keep more of your COLA. Call 1-800-MEDIGAP for a free coverage review.