Social Security and SSI Benefits to Rise in 2026 with 2.8% COLA Adjustment

A 2.8% cost-of-living increase will boost payments for 75 million Americans, including higher SSI checks starting December 31, amid broader changes to earnings limits, Medicare costs, and tax thresholds.

MORRISTOWN, N.J. — Millions of Americans who receive Social Security and Supplemental Security Income (SSI) are set to see their benefits increase in 2026, following the Social Security Administration’s (SSA) announcement of a 2.8% cost-of-living adjustment (COLA). The annual increase, which is tied to inflation via the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers, will take effect at the end of December for SSI recipients and in January for other Social Security beneficiaries.

The adjustment will raise the maximum monthly federal SSI payment to $994 for an individual, up from $967 in 2025. Eligible couples will see their maximum federal benefit increase from $1,450 to $1,491, while essential persons—those who assist SSI recipients with daily living—will receive up to $498. These figures represent federal baselines; some states provide supplemental payments, which may result in higher total benefits.

For Social Security retirement beneficiaries, the average monthly payment is expected to increase from $2,015 to $2,071. Notices detailing the new benefit amounts and any deductions will be mailed throughout December, although beneficiaries with a my Social Security account can access their COLA information online beginning in late November.

Broader Changes Affecting Social Security in 2026

In addition to the COLA increase, 2026 will bring several other updates to the Social Security program that affect current and future recipients:

Medicare Premium Increases

The standard monthly premium for Medicare Part B is set to rise from $185 to $202.90—a 9.7% increase. For many recipients, this premium is automatically deducted from Social Security payments, which could offset part of the COLA increase.

Taxable Earnings Limit Raised

Workers will pay Social Security taxes on earnings up to $184,500 in 2026, up from $176,100 in 2025. The Social Security tax rate remains unchanged at 12.4%, split between employees and employers, while self-employed individuals pay the full rate.

Tax Relief for Older Beneficiaries

A temporary federal tax deduction of up to $6,000 will become available in 2026 for individuals aged 65 or older. This deduction, part of recent federal legislation, aims to reduce or eliminate federal taxes on Social Security income for eligible low- and middle-income retirees. However, the Social Security actuary projects the measure will reduce trust fund revenues and could hasten trust fund depletion by up to six months.

Updated Earnings Test Thresholds

For beneficiaries below full retirement age (FRA)—currently between 66 and 67—the earnings limit before benefit reductions will increase. In 2026, $1 will be withheld for every $2 earned over $24,480, up from $23,400 in 2025. For those reaching FRA during 2026, the earnings threshold will be $65,160, up from $62,160.

SSDI Work Income Limits Adjusted

Those receiving Social Security Disability Insurance (SSDI) must remain below certain income thresholds to maintain eligibility. In 2026, the monthly limit for most SSDI recipients will rise to $1,690, while individuals who are blind may earn up to $2,830 without losing benefits.

Qualifying Credit Threshold Raised

To earn one Social Security credit in 2026, workers must make $1,890, up from $1,810 in 2025. Four credits can be earned annually, with 40 required to qualify for retirement benefits.

Notices and Access to Information

COLA notices will be delivered by mail and through beneficiaries’ my Social Security online accounts. To view COLA and other SSA documents electronically, individuals must create or access their account by November 19, 2025. The online portal also offers digital access to forms, tax documents, and options to manage benefit preferences.

SSA officials encourage the use of the secure online system to avoid mail delays or loss of important information. The agency reiterated that its services are free and cautioned the public against fraudulent attempts to collect personal data or payments.

Cost-of-Living and Affordability Concerns

While the 2.8% increase marks an uptick from the 2.5% adjustment in 2025, advocates for seniors and low-income beneficiaries argue it remains insufficient to match rising living costs. The Senior Citizens League continues to call for a minimum annual COLA of 3% and changes to the COLA formula that better reflect retirees’ expenses, particularly those related to healthcare and housing.

Since 2000, the average COLA has been approximately 2.6%, despite notable spikes in recent years, including 5.9% in 2022 and 8.7% in 2023, reflecting inflation volatility.

Local Context:

Morristown residents receiving SSI or Social Security retirement, disability, or survivor benefits will see the same changes reflected in their 2026 payments. New Jersey supplements federal SSI payments, which may result in higher benefit levels for eligible residents. Those with internet access are encouraged to register for a my Social Security account to track updates efficiently.

For more details on Social Security changes, local beneficiaries can visit the Social Security Administration website or speak with staff at the Morristown Social Security office.