Every October, one announcement changes the financial outlook for millions of Americans who rely on Social Security. This year, it’s happening later than usual—on October 24, 2025. That’s when the Social Security Administration (SSA) will reveal the official Cost-of-Living Adjustment (COLA) for 2026.
Whether you collect retirement, disability, or SSI benefits, this one number will determine how much more you’ll receive starting next year. Here’s everything you need to know—who qualifies, how the increase works, and why many still feel COLA doesn’t go far enough.
Benefits
Every Social Security recipient falls into one of three main benefit categories:
- Retirement
- Disability (SSDI)
- Supplemental Security Income (SSI)
Some people qualify for more than one. The majority of recipients, though, are retirees—many of whom depend heavily on monthly payments to cover daily expenses.
To qualify for retirement benefits, you must:
- Have worked and paid into Social Security for at least 10 years
- Be at least 62 years old to start claiming benefits
The longer you wait to claim (up to age 70), the higher your monthly check. The maximum monthly retirement benefit currently tops out at $5,108, but you must wait until 70 and meet other earning requirements to receive that amount. Most people, however, receive much less—around $2,000 a month on average.
COLA
Once you claim your retirement benefit, you can’t boost it—except when COLA kicks in.
The Cost-of-Living Adjustment is a yearly increase in benefits meant to keep up with inflation. It applies to all Social Security recipients, including those on SSI and disability. In 2026, this increase will be based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2025.
Originally, the SSA planned to announce the 2026 COLA on October 15, 2025, but due to the current government shutdown, it has been pushed back to October 24, 2025.
Current estimates from the Senior Citizens League (TSCL) suggest the 2026 COLA will be 2.7%. That would add about $54 to the average retirement benefit, raising it from $2,000 to approximately $2,054 per month.
Timeline
Here’s when you’ll know and see your new payment amounts:
- October 24, 2025: SSA announces the 2026 COLA
- Late November 2025: COLA details appear in my Social Security online accounts
- December 2025: Paper notices are mailed
- December 31, 2025: SSI recipients receive higher payments
- January 2026: All other beneficiaries get increased checks
You don’t need to do anything. If you’re eligible, your new amount will update automatically.
Struggles
While COLA helps protect against inflation, many seniors argue it’s not enough. According to TSCL, the buying power of Social Security benefits has dropped by nearly 20% since 2010. That’s a big concern, especially as medical costs, housing, and food prices keep rising.
Why the gap? It comes down to how COLA is calculated. The CPI-W reflects the spending habits of working individuals—not retirees. Older adults often spend more on health care, prescriptions, and essentials, which may rise faster than overall inflation.
Shannon Benton, Executive Director of TSCL, noted, “Seniors across America are holding their breath. While a higher COLA is welcome, many will still feel left behind.”
Limits
Another important factor in 2026 is the earnings limit for people who work while collecting benefits before reaching full retirement age.
Here are the new earnings thresholds for 2026:
| Group | 2026 Limit | Rule |
|---|---|---|
| Under full retirement age | $24,480 | $1 withheld for every $2 earned above the limit |
| Reaching full retirement age | $65,160 | $1 withheld for every $3 earned above the limit |
If you’re under full retirement age and work in 2026, keep an eye on your earnings. Exceeding the limit means a temporary withholding of benefits—not a permanent loss. Once you reach full retirement age, SSA adjusts your payment to credit the withheld months.
Action
Here’s what you can do to prepare:
- Mark October 24, 2025 on your calendar
- Check your my Social Security account in late November for updated benefits
- Watch your mail in December for the COLA letter
- Budget for 2026 using the estimated increase
- Track your earnings if you plan to work next year
No extra paperwork is needed—the new benefit amount applies automatically to all recipients.
The 2026 COLA announcement is more than a stat—it’s a lifeline for millions of retirees, disabled workers, and SSI recipients. While a 2.7% increase won’t erase rising costs, it’s still a critical adjustment that protects the value of your monthly benefit. Mark your calendar, check your online account, and stay informed so you can plan with confidence.
FAQs
When will the 2026 COLA be announced?
October 24, 2025, due to a government delay.
How much is the projected COLA for 2026?
Estimates suggest a 2.7% increase in benefits.
Do I need to apply for the new benefit amount?
No, the increase is automatic for all recipients.
When will my new payment amount start?
SSI increases December 31, 2025; others in January 2026.
Why do some seniors feel COLA is not enough?
Because it doesn’t reflect retiree-specific inflation costs.
