Social Security COLA for 2026
Presented by Marc Aarons
On October 24, 2025, the Social Security Administration announced the 2026 cost-of-living adjustment (COLA), and I wanted to provide a quick breakdown of what’s changing, why it matters, and what steps you may want to take next.
1. What was announced?
Social Security and Supplemental Security Income (SSI) benefits will increase by 2.8% beginning in January 2026. This adjustment is designed to help benefits keep pace with inflation and will be reflected automatically in eligible payments.
2. How is the COLA rate determined?
Each year, the Social Security Administration calculates the COLA based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured from July through September. If prices have increased during that period, the COLA reflects that, resulting in a benefit increase the following January.
The 2026 adjustment of 2.8% reflects a modest rise in inflation over the past year. While the COLA helps preserve purchasing power, it is based on a broad inflation index and may not fully account for rising costs in specific areas like health care, housing, or groceries.
3. What does this mean for beneficiaries?
According to the Social Security Administration, the average monthly retirement benefit is expected to increase by about $56 due to the 2.8% COLA.
Medicare Part B premiums are deducted directly from Social Security payments for most beneficiaries. The Medicare Trustees have projected that the standard Part B premium will increase from $185 in 2025 to $206.50 in 2026. This means the actual increase to your monthly deposit may be less than the full COLA amount.
4. What should you do next?
- Watch for your COLA notice: The SSA will begin mailing notices in December. If you have a my Social Security account, you can view your adjustment online sooner. To access it, visit ssa.gov/myaccount and enroll before November 19th.
- Check your budget: This is a good time to take a fresh look at your monthly expenses and income, especially if you expect changes in Medicare premiums or other costs.
I understand that, for some, the increase may feel modest given the rising cost of essentials. If you’d like to talk through how these updates may affect your income planning, budgeting, or overall retirement strategy, I’d be glad to help. Give me a call or reply to this email to set up a time to connect.
Please don’t hesitate to reach out with any questions or concerns.
Marc Aarons may be reached at 714-887-8000 or Email Marc
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