According to Accounting Today, nearly 71 million Americans receiving Social Security will see a 2.8% increases in their monthly benefits next year, the Social Security Administration (SSA) announced on Oct.24.

The cost-of-living adjustment, or COLA, is intended to keep pace with inflation and will raise the average benefit for retired workers by about $56 per month, bringing the total to $2,071. 

Higher payments for Supplemental Security Income recipients will begin on Dec. 31, while the increase for Social Security beneficiaries will take effect in January. The Bureau of Labor Statistics released its September inflation data earlier in the day to ensure the agency could meet its statutory deadline to announce the adjustment, despite the ongoing government shutdown. 

The annual COLA is based on the Consumer Price Index for urban wage earners and clerical workers, which covers about 30% of the population. This year’s 2.8% increase follows a 2.5% rise at the start of 2025 and remains well below the historic 8.7% adjustment that took effect in 2023 after a sharp inflation surge. 

The SSA also announced the maximum amount f earnings subject to the Social Security tax will rise to $184,500 in 2026, up from $176,100 this year.