The Social Security Administration (SSA) announced Friday that benefits will increase by 2.8 percent starting in January 2026, giving roughly 75 million recipients an average boost of about $56 per month.
While that may sound like welcome news, many retirees say the modest raise won’t stretch far enough in today’s economy.
This year’s cost-of-living adjustment (COLA) is slightly higher than last year’s 2.5 percent increase, but still trails behind the real-world inflation many seniors face. Over the past decade, the average COLA has hovered around 3.1 percent—a figure that doesn’t always keep pace with the rising cost of essentials like food, housing, and healthcare, which often hit older Americans harder than the general population.
The adjustment was calculated after September’s inflation data showed a small uptick in prices, pushing inflation to its highest level since January. Recipients will start receiving notices about their updated benefit amounts in early December.
“Social Security is a promise kept,” said SSA Commissioner Frank J. Bisignano. “The annual cost-of-living adjustment ensures benefits reflect today’s economic realities.”
Still, for many retirees, that promise feels increasingly unfulfilled as their cost of living continues to increase.
To give seniors a real increase, Congress needs to pass a bill we call the Elder Relief Act. Learn more about this important proposed legislation here.