Cost-of-Living Adjustments (COLA) 2026
The Social Security Administration (SSA) announced a 2.8% Cost-of-Living Adjustment (COLA) for 2026. This increase helps ensure that monthly Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation. Most Social Security beneficiaries will see the higher benefit amounts in January 2026, while SSI recipients will see the change begin on December 31, 2025.[1][2]
What Is the Cost-of-Living Adjustment (COLA)?
Each year, Social Security benefits are adjusted to reflect inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). SSA compares the average CPI-W for the third quarter (July–September) of a year to the same period the prior year. If there is an increase, benefits rise by that percentage.[3]
2026 COLA Summary
| Category | 2025 | 2026 (2.8% COLA) |
|---|---|---|
| Average Retired Worker Benefit (monthly) | $2,015 | $2,071 |
| Retired Couple, Both Receiving Benefits (monthly) | $3,120 | $3,208 |
| Average Disabled Worker Benefit (monthly) | $1,586 | $1,630 |
| SSI Federal Payment Standard — Individual (monthly) | $967 | $994 |
| SSI Federal Payment Standard — Couple (monthly) | $1,451 | $1,491 |
| Maximum Taxable Earnings (Social Security/OASDI) | $176,100 | $184,500 |
| Earnings Limit (Under Full Retirement Age) | $22,320/yr ($1,860/mo) | $24,480/yr ($2,040/mo) |
| Earnings Limit (Year You Reach Full Retirement Age) | $59,520/yr ($4,960/mo) | $65,160/yr ($5,430/mo) |
Sources for 2026 figures: SSA COLA page & Fact Sheet; SSI payment standards page.[1][4][5][6]
When Will Beneficiaries See the Increase?
- Social Security: Higher payments begin with January 2026 benefits.[1]
- SSI: Higher payments begin on December 31, 2025 (the January 2026 payment).[1]
COLA Under VA’s Compensation Program
The Department of Veterans Affairs (VA) applies the same 2.8% COLA to VA disability compensation and related payments for 2026. By statute, VA compensation rates are tied to the annual Social Security COLA. For 2026, this 2.8% increase affects monthly disability compensation payments, dependency adjustments, Special Monthly Compensation (SMC), Dependency and Indemnity Compensation (DIC), and other VA compensation categories. New VA rates are effective December 1, 2025 and first reflected in payments issued in January 2026.[7][8]
Veterans can review the 2026 VA pay charts by percentage (10%–100%), with additional amounts for qualifying dependents and SMC categories, to see the exact monthly total after the 2.8% adjustment. If you receive both Social Security and VA benefits, you will see the COLA reflected across both programs on the schedules noted above.[7][8]
Why the Adjustment Matters
Even modest percentage increases can help offset rising costs for essentials such as healthcare, housing, utilities, and food. However, expenses may still outpace the COLA for some households, so it’s wise to review budgets and benefit interactions (including income-based programs) for the year ahead.
What Beneficiaries Should Do
- Look for your official COLA notice in late November 2025 or check your my Social Security account for updated amounts.[1]
- If you receive VA compensation, review the updated 2026 VA pay tables to confirm your new monthly amount and any dependency or SMC changes.[7][8]
- Plan for possible changes in Medicare premiums, taxes, or income-based program thresholds that can affect your net monthly budget.
Need Help with Social Security Disability Benefits?
If you are applying for Social Security Disability (SSD) or Supplemental Security Income (SSI), or if your claim has been denied, the attorneys at Avard Law Offices can help. We have decades of experience representing clients throughout Florida in administrative hearings and federal court appeals.
Contact us today for a free case evaluation.
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