Overview
- The Social Security Administration finalized a 2.8% cost-of-living adjustment effective January 2026, affecting roughly 71–75 million retirees, people with disabilities, survivors and SSI recipients.
- The average monthly benefit is set to rise about $56, the maximum taxable earnings will increase to $184,500, and the payroll tax rate will not change in 2026.
- Medicare’s Part B premium for 2026 is projected to jump 11.6% to about $206.50 per month, which analysts say could absorb nearly half of the typical beneficiary’s COLA.
- The National Council on Aging argues the increase is insufficient given rising health, housing and other living costs for older adults.
- SSA will begin sending individualized notices in early December; the CPI‑W-based calculation moved forward after a shutdown-delayed September inflation release, and budget groups warn trust funds could be depleted as soon as 2032 without reforms such as lifting the payroll tax cap or limiting COLAs for high earners.