More than 75 million Americans who receive Social Security and Supplemental Security Income benefits will see their monthly payments increase starting next year.

The Social Security 2026 cost-of-living adjustment announcement was initially slated for Oct. 15, but was pushed back due to the federal government shutdown, according to CNBC. On Friday, the federal agency revealed the size of the increase beneficiaries can expect in their payments.

What is the Social Security cost-of-living adjustment increase for 2026?

“The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026,” the Social Security Administration confirmed on its website.

“Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025.” The agency also noted that some people receive both Social Security and SSI benefits.

Will the COLA be enough for older Americans to get by?

While there has been a cost-of-living adjustment each year since 1975, some older people are concerned that benefit increases are not enough to cover basic needs due to high costs and inflation.

“I just wish it would be more,” Kathryn Bailey, 74, of Washington, D.C., said, according to CNBC.

Bailey is a retired oncology researcher. She reflected when beneficiaries received a record-breaking 8.7% cost-of-living adjustment in response to the post-pandemic hike, offering some financial relief to American households who needed the extra income boost.

The $135 increase she received back then “helped, but I used it all,” Bailey said, noting that the impending cost-of-living adjustment “won’t do anything,” to cover higher expenses like rent, food, healthcare and more.

Experts had predicted the cost-of-living adjustment would be around 2.7-2.8%. The Senior Citizens League stated that the increase would still leave many older people concerned about their finances.

“Even with that bump, it still won’t be enough to cover the rising costs seniors face,” the organization said, according to Newsweek. “Everyday essentials like housing, healthcare, and groceries continue to climb faster than the COLA can keep up with.”

How earnings affect Social Security benefits

Social Security earnings based on the cost-of-living adjustment are affected by the beneficiary’s age and whether they are below or have reached full retirement age.

Workers below full retirement age will have an earnings limit of $24,480, with $1 in benefits withheld for every $2 earned above that amount.

Those reaching full retirement age in 2026 face a higher limit of $65,160, with $1 deducted for every $3 over the threshold until they reach full retirement age. Workers already at full retirement age for the year have no earnings limit.

“The purpose of the COLA is to ensure that the purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation. It is based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year. If there is no increase, there can be no COLA,” the Social Security Administration said.
The post Social Security Shocking 2026 COLA Projection Has People Concerned That It Isn’t Enough To Get By appeared first on Blavity.



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