Social Security Announces 2.8% Benefit Increase for 2026

More than 75 million Americans, including thousands in Morris County, will see higher Social Security and SSI payments starting in late 2025 and early 2026.

Beginning in January 2026, Social Security and Supplemental Security Income (SSI) beneficiaries across the United States will receive a 2.8% cost-of-living adjustment (COLA), the Social Security Administration (SSA) announced. The adjustment will affect payments for nearly 71 million Social Security recipients and approximately 7.5 million SSI beneficiaries.

The increase aims to keep benefits in line with inflation and will translate to an average monthly increase of about $56 for Social Security retirees. SSI recipients will begin receiving higher payments on December 31, 2025, while Social Security recipients will see their adjusted benefits starting in January 2026.

The annual COLA is determined under the Social Security Act and is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), calculated by the U.S. Department of Labor’s Bureau of Labor Statistics. This year’s 2.8% increase follows a 2.5% COLA applied in 2025 and remains slightly below the 10-year average of 3.1%.

In addition to the benefit increase, the SSA announced changes to earnings-related thresholds. The maximum taxable earnings amount—the income on which Social Security taxes are levied—will rise from $176,100 to $184,500 in 2026.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” said Social Security Administration Commissioner Frank J. Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

For those who have not yet reached full retirement age, the earnings limit will increase to $24,480. Workers who reach full retirement age in 2026 will have a higher earnings threshold of $65,160. Above these limits, benefits may be reduced depending on income, though there is no earnings limit for individuals who have already reached full retirement age for the entire year.

Beneficiaries will begin receiving notice of their new benefit amounts by mail in early December 2025. Those who have set up a “my Social Security” account at ssa.gov/myaccount can receive their COLA notices online, beginning in late November. The SSA notes that online delivery is secure and faster than traditional mail. Individuals wishing to access their 2026 COLA information online must establish their account by November 19, 2025.

Information regarding Medicare premiums and coverage changes for 2026 will be available at medicare.gov. For Social Security beneficiaries who are also enrolled in Medicare, benefit notices that factor in Medicare adjustments will be accessible through the online Message Center on the SSA’s website.

The SSA also reiterated a warning about potential scams and fraud. The agency emphasized that it does not request personal information or fees via phone calls, emails, or gift card transactions. Users are advised to exercise caution online and to avoid suspicious links or attachments.

For more information on the 2026 COLA and related updates, residents can visit ssa.gov/cola.