Social Security's 2026 Cost-of-Living Adjustment Is Official. Here's How Much Benefits Will Increase.

There's a reason that seniors on Social Security had Oct. 15 marked on their calendars for much of the year. That was the day the Social Security Administration (SSA) was supposed to announce an official cost-of-living adjustment (COLA) for 2026.

Due to the government shutdown, though, the inflation data needed to calculate a COLA was delayed. That, in turn, forced the SSA to postpone its 2026 COLA announcement.

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At this point, though, we have an official number for next year's Social Security COLA. And it's a number seniors may be reasonably happy with. However, there's still a big piece of the puzzle that's missing.

Your 2026 Social Security COLA will be 2.8%

At the start of 2025, seniors on Social Security saw their benefits increase 2.5%. In 2026, benefits will be getting a 2.8% boost, which is an improvement over 2025's raise.

Of course, some seniors may be unhappy with a 2.8% COLA, seeing as how persistent inflation has been. But a larger COLA than 2.8% would mean that inflation is truly a huge problem.

Put another way, the larger any given Social Security COLA is, the more problematic inflation is. So what retirees on Social Security lose in one regard, they gain in another.

There's still a wild card factor

As of August 2025, the average monthly Social Security benefit among retired workers was about $2,008. This means that after a 2.8% COLA, the typical retiree should see their benefit rise by $56 per month.

Now that you know what 2026's Social Security COLA looks like, you're in a better position to figure out how much your benefits will increase in the new year based on the amount you collect today. But there may be one missing piece of information.

Those enrolled in Social Security and Medicare at the same time have their Part B premiums paid out of their monthly benefits. But if the standard monthly Part B premium rises a lot for 2026, it could erode your COLA.

Earlier this year, the Medicare Trustees projected that 2026's standard monthly Part B premium would amount to $206.50 -- a more than $20 increase over the standard $185 monthly Part B premium for 2025. If that projection is correct, seniors on Social Security could see their 2.8% COLA diminished in terms of buying power.

Don't just rely on a Social Security COLA to improve your financial situation

If you've been struggling to keep up with your bills, you may be hoping that your 2.8% Social Security COLA helps out quite a bit. But it's important to remember that all that COLA will do in a best-case scenario is help you keep pace with inflation.

If you're looking to improve your finances, you'll need to think beyond a Social Security COLA. That could mean making lifestyle changes, like downsizing to a smaller home or cutting back on expenses. Or, it could mean relocating to a part of the U.S. where your Social Security check gives you more buying power.

Part-time work is something to consider as well. As a Social Security recipient, you're allowed to have a job, too.

If you haven't yet reached full retirement age, you'll be subject to an earnings test. And if you earn a lot of money, you could have some of your Social Security withheld temporarily. But that doesn't mean working is off the table.

Whether you're happy with your 2026 Social Security COLA, disappointed, or ambivalent, now's the time to start planning around that raise. And a big part of that could mean making smart choices that improve your financial picture, not just in 2026, but in the long run.

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