The Social Security Administration announced the 2026 COLA on October 24, 2025, increasing Social Security benefits by 2.8%. The announcement followed the BLS’s publication of the CPI-W for September 2025. The beneficiaries can check the increase to their benefits here.
The 2.8% increase is higher than the 2025 COLA of 2.5%, which is great, since the 2025 COLA decreased last year from the previous year’s increase. The report reveals that retirement benefits will increase by $56 per month from January 2026 due to this adjustment.
The SSA published the 2026 COLA fact sheet, revealing the increased amounts for the beneficiaries. According to SSA, around 71 million Social Security beneficiaries will experience an increase in January 2026. However, some reports indicate that some retirees may not experience that much increase.
How much will your retirement benefit from January 2026?
Based on the CPI-W of the 2025 third quarter and the 2024 third quarter, SSA has announced the COLA 2026 to be 2.8%. The average increase to the retirement benefit is $56 per month for the retirees.
The retirees who are wondering about the increase in their retirement from January 2026 can check it below:
- The maximum Social Security retirement benefit for beneficiaries retiring at full retirement age is $4152 per month, from $4018.
- The average monthly benefit increased from January 2026 for all retired workers will be $2071 from $2015.
- The average monthly payment for an aged couple where both are receiving the benefit increased to $3208 from $3120.
What is the reason that some retirees may see their payout going down?
The major concern with the retirees was the reduction of the payment or not enjoying the boost that much, as the Medicare Part B premium can rise from 2026. The reports indicated that the Medicare Part B Premium can jump to $206 from the current premium of $185.
The Medicare premium is deducted from the retiree’s retirement benefit; hence, if the premium increases, the boosted benefit can be reduced. Most Americans sign up for Medicare and Social Security together to cover their health costs. The Medicare projected increase for next year is 11.6%.
If it takes place, the retirees can expect their retirement benefit to be increased by $34.50 instead of the $56 per month. According to the SSA, the hold harmless provision, the Medicare Part B premium cannot reduce the Social Security benefit from the payout they used to receive last year, so do not worry, your payment will not decrease to that extent due to Medicare.
What are the retirement test exempt amounts for 2026?
The Social Security Administration has set the retirement earnings test exemption for individuals who are below their full retirement age and have claimed the retirement benefit. Under this, the administration withheld the benefits if the earnings went above the threshold.
The benefits are withheld to ensure that the benefits match the retirement status. The benefit will later resume to full benefit once you reach your full retirement age. With the COLA 2026 announcement and increase to the benefit amounts, the retirees will also see the increase to the exempt limit.
So, from January 2026, retirees under FRA will see the exempt amount increase from $23,400 to $24,480 a year, whereas retirees who reach their full retirement age next year can expect the exempt amount to boost to $65,160 from $62,160 a year from January 2026.
What will be the payroll taxes and other benefits boost for 2026?
With the COLA 2026 increase announced, the Social Security beneficiaries can also expect the changes in the payroll taxes that fund the Social Security benefits. The workers who are paying for their future retirement income should know that the maximum taxable earnings for the payroll taxes is $184,500, from $176,100.
The other recipients who are wondering about their payout amount can check their increased payment based on the 2026 COLA below:
| Benefit | COLA 2026 Payment Amount |
| Supplemental Security Income | Individual: $994 Couples: $1491 |
| Widowed Mother and two children average payout | $3208 |
| Aged Widower living on an average payout | $1919 |
| All disabled workers’ average monthly payout | $1630 |
| Disabled worker, spouse, and one or more children average monthly payout | $2937 |
The Social Security Administration will inform recipients about the increased amount through mail from early December, or you can check your My Social Security account.
The COLA 2026 is finally out, and the increase is better than the prediction; now retirees will have more payment. However, with increasing inflation, do not entirely depend on your benefit for your living expenses.
Disclaimer: This information covers the 2026 Social Security COLA announcement. Confirm official rates and updates directly from the SSA.
