The United States Social Security Administration (SSA) announced Friday that beneficiaries will be receiving a 2.8 percent cost-of-living adjustment (COLA) next year.
These increases will impact payments being sent out through Old-Age, Survivors, and Disability Insurance (OASDI) — which is what most people think of traditional Social Security benefits — as well as the Supplemental Security Income (SSI) program.
On average, Americans will see their Social Security payments increase by $56 per month beginning in January of next year, but the exact amount will depend upon each person’s exact level of benefits.
According to the SSA’s Friday press release, the annual COLA has averaged 3.1 percent over the past decade. The COLA for 2025 was 2.5 percent.
It is expected that 71 million Americans will see this new benefit beginning in January of 2026, while 7.5 million SSI recipients will see the COLA adjustment reflected as of December 31, 2025.
“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 SSA Commissioner Frank J. Bisignano.
“The cost-of-living adjustment is a vital part of how Social Security delivers on its mission,” Bisignano added.
Click Here to Read the Full SSA Press Release
The maximum amount of earnings that is subject to Social Security taxes will also increase next year, rising from $176,100 to $184,500.
Going up as well will be the upper earnings limit for Social Security recipients who have not yet reached full retirement age. Currently at $23,400 per year, this ceiling will be increased to $24,480 in 2026.
The threshold for Substantial Gainful Activity for the purposes of determining eligibility for disability benefits has also been raised slightly from $1,620 per month to $1,690 per month for non-blind individuals.
For blind individuals, the threshold will be increased from $2,700 monthly to $2,830 monthly.
