Social Security unveils cost-of-living adjustment for 2026. Here's what to know.

Stock image of a social security card alongside US dollars. (Tetra Images/STOCK PHOTO/Getty Images)
By Max Zahn, ABC News

(NEW YORK) -- Social security benefits will rise 2.8% starting in January, amounting to an additional $56 per month for 75 million recipients, the Social Security Administration (SSA) said on Friday.

The cost-of-living adjustment for 2026, known as COLA, came in slightly higher than the prior year's hike of 2.5%. Over the past decade, the average COLA clocked in at 3.1%.

The announcement on Friday came after inflation data for September showed a slight acceleration of price increases, sending inflation to its highest level since January. The fresh reading marked the final piece of data necessary for SSA to calculate COLA for 2026.

"Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today's economic realities and continue to provide a foundation of security," SSA Commissioner Frank J. Bisignano said in a statement.

The agency will also hike the maximum amount of earnings subject to the Social Security tax, elevating taxable income from $176,100 to $184,500.
SSA will start notifying recipients about their new benefit amount by mail starting in early December, the agency said.

Copyright © 2025, ABC Audio. All rights reserved.

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