Social Security Announces 2026 Cost-of-Living Adjustment (COLA)

Each year, Fischer Investment Strategies keeps clients informed about important retirement updates—like the latest Social Security Cost-of-Living Adjustment (COLA) that affects millions of retirees nationwide.

The Social Security Administration (SSA) has announced the 2026 Cost-of-Living Adjustment (COLA), which increases monthly benefit payments for millions of Americans. Each year, the SSA calculates this adjustment based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)—helping benefits keep pace with rising costs of living.

For 2026, the COLA increase is 2.8%. Here’s what that means for retirees, workers, and anyone receiving Social Security or Supplemental Security Income (SSI).

View the SSA’s 2026 Cost-of-Living Adjustment (COLA) Fact Sheet here.

2026 Social Security COLA Increase

Based on the increase in the CPI-W from the third quarter of 2024 through the third quarter of 2025, the SSA has set the 2026 COLA at 2.8%.

That means:

• Social Security and SSI recipients will see a 2.8% increase in their monthly benefits beginning January 2026.
• Updated benefit amounts will appear automatically in your January deposit or check.
• The new COLA applies to all eligible retired workers, disability beneficiaries, and SSI recipients.

Here are a few examples from the SSA’s official 2026 data:

• Average monthly benefit for all retired workers will rise from $2,015 to $2,071.
• An aged couple receiving benefits will see their combined payment increase from $3,120 to $3,208.
• The maximum Social Security benefit for a worker retiring at full retirement age increases from $4,018 to $4,152.

Key 2026 Social Security Changes

In addition to the 2.8% COLA, the SSA announced several other updates for 2026:

• Maximum taxable earnings (OASDI): Increased from $176,100 to $184,500.
• Quarter of coverage: Up from $1,810 to $1,890.
• Retirement earnings test exempt amounts:
  • Under full retirement age: $24,480 per year ($2,040/month).
  • Year individual reaches full retirement age: $65,160 per year ($5,430/month).
• Substantial gainful activity (non-blind): $1,690/month.
• Substantial gainful activity (blind): $2,830/month.
• SSI Federal Payment Standard:
  • Individual: $994/month (up from $967).
  • Couple: $1,491/month (up from $1,450).

You can review all official figures in the SSA’s 2026 COLA Factsheet.

Why the COLA Matters

For retirees who depend on Social Security, this adjustment helps offset inflation-related costs for essentials such as groceries, healthcare, and housing. While the 2.8% increase is modest, it represents continued protection against rising prices.

At Fischer Investment Strategies, we encourage clients to view the COLA as one piece of a broader income plan. Combining Social Security benefits with retirement savings, investment income, and tax-efficient withdrawal strategies can help maintain purchasing power over time.

How to Check Your Updated Benefits

You can view your updated 2026 benefit amount by:

1. Logging into your “my Social Security” account at ssa.gov/myaccount.
2. Reviewing your benefit verification letter or January payment notice.
3. Checking your January 2026 deposit or benefit statement for the updated amount.

If you haven’t created an online account yet, it’s easy to set up and provides secure access to your statements, benefit history, and personalized projections.

Plan Confidently With a Fiduciary Advisor

Understanding how annual Social Security changes affect your income is an important part of retirement planning. As a fee-only fiduciary firm, Fischer Investment Strategies helps clients coordinate Social Security timing and benefits with their broader financial goals.

Our advisors provide clear, personalized guidance to help you make the most of each COLA adjustment—so you can retire with confidence and peace of mind.