2026 Cost-of-Living Adjustment (COLA)
As you probably already heard, the Social Security Administration announced its 2026 Cost-of-Living Adjustment (COLA), bringing changes that will affect millions of retirees, disabled workers, and SSI recipients nationwide. With inflation continuing to influence daily expenses, the 2026 COLA increase of 2.8 percent aims to help beneficiaries maintain their purchasing power in the year ahead.
This adjustment affects Social Security retirement, disability, survivor benefits, and Supplemental Security Income (SSI). Below is a breakdown of what the new COLA means and other important Social Security updates taking effect in 2026.
How the 2026 COLA Stacks Up Against Recent Years
The 2026 COLA of 2.8 percent represents a modest rise but is slightly higher than the 2025 adjustment of 2.5 percent. The last several years have brought a wide range of increases due to shifting economic conditions:
- 2026: 2.8%
- 2025: 2.5%
- 2024: 3.2%
- 2023: 8.7%
- 2022: 5.9%
Compared with the unusually high increases of 2022 and 2023, the 2026 adjustment reflects a return to more typical inflation trends after several years of price volatility.
Who Will See an Increase?
Nearly 75 million Americans receive some form of Social Security or SSI benefits. These payments are especially important for older adults, individuals with disabilities, and low-income households who rely on them to meet basic needs.
While a 2.8 percent increase does not erase the rising costs of essentials like food, utilities, and healthcare, it does provide an important adjustment for millions living on fixed incomes.
How COLA Is Determined
The annual COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), tracked by the U.S. Bureau of Labor Statistics. When the CPI-W shows a year-over-year increase, Social Security benefits rise accordingly. The SSA outlines its COLA process each year at SSA.gov.
Although CPI-W has been the standard since 1975, some policymakers argue that a more senior-focused measure, the Consumer Price Index for the Elderly (CPI-E), would better reflect spending patterns for retirees, who make up nearly 75 percent of all beneficiaries.
Additional Social Security Changes for 2026
Along with the COLA increase, several key Social Security thresholds and program amounts will rise in 2026:
- Quarter of Coverage (QC): Workers will need $1,890 in earnings for each credit in 2026, up from $1,810 in 2025. (See SSA’s update: 2026 COLA Fact Sheet)
- Substantial Gainful Activity (SGA): For 2026, SGA increases to:
- $1,690 per month for non-blind individuals
- $2,830 per month for statutorily blind individuals
Source: SSA SGA Guidelines
- Trial Work Period (TWP): The monthly earnings threshold for TWP will rise to $1,210. Source: SSA Trial Work Period
- SSI Federal Payment Standard: Monthly SSI payments will increase to:
- $994 for individuals
- $1,491 for couples
Source: SSI Payment Standards
When Did The Beneficiaries Begin Seeing the Increase?
In January 2026, Social Security beneficiaries began receiving their updated payments. For SSI recipients, the higher payment amount commenced on December 31, 2025 due to the federal payment schedule.
In addition, the Medicare Part B premium rose to $202.90 per month in 2026. Because most beneficiaries have their premiums deducted directly from their Social Security benefits, the Part B increase may affect the net monthly benefit received.
At The Law Offices of Richard I. Feingold, P.C., we assist individuals navigating Social Security Disability claims and personal injury matters. If you have questions about applying for benefits or appealing a denial, please contact us today for guidance. We are here to help.
