Social Security COLA Set at 2.8% for 2026

The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026 that will take effect in January 2026 and applies to Social Security, SSDI and SSI recipients and — under 2024 legislation — to military retirees and VA disability payments. The increase averages about $56 per month for roughly 70–75 million beneficiaries, with SSI recipients receiving their higher payments at the end of December. The COLA is financed by payroll taxes and was announced alongside a rise in the maximum taxable earnings cap to $184,500 for 2026. The announcement was delayed by the federal government shutdown after the September CPI report was postponed; the CPI later showed a 3% year-over-year increase, slightly below forecasts. Advocates and many retirees say the modest rise (up from 2.5% in 2025) will not fully offset ongoing inflationary pressures, and policymakers continue to confront concerns about benefit adequacy and the program’s long-term finances.