Wondering if you’ll see a benefit increase in the coming months? On November 3, 2025 the Social Security Administration (SSA) announced its 2026 COLA increase of 2.8 percent (2.8%) for retirees, survivors, and disabled beneficiaries. Military vets drawing benefits from the U.S. Department of Veterans Affairs (VA) will also see a 2.8% pay bump in 2026. Medicare costs are also set to rise slightly in January 2026.
To learn how the SSA calculated this percentage increase or which specific benefits change and when, keep reading.
Understanding the 2026 Cost-of-Living-Adjustment (COLA): Key Takeaways
- Social Security benefits are going up 2.8% starting on December 31, 2025. Most people will see higher disability and retirement benefit checks starting in January 2026.
- The 2026 COLA increase offers higher monthly pay for veterans on VA disability and military retirement payments also starting in January.
- Medicare premiums for Part B plans will also increase about $17.90 per month.
- COLA increases are designed to adjust monthly payments from federal programs to keep up with current inflation rates.
- Each year’s COLA calculation happens in October and goes into effect the following January based on the prior year’s CPI-W.
Social Security Administration Announces 2026 COLA Increase of 2.8 Percent
Despite the recent government shutdown, the Social Security Administration announced a 2.8% 2026 COLA increase one month late in November 2025. This is slightly higher than last year’s 2.5% COLA update announced in October 2024. Each year’s COLA increase offers a bump in federal pay for anyone who currently receives payments from the following programs:
- Supplemental Security Income (SSI)
- Social Security benefits, including early or regular retirement income as well as DI payments to disabled workers
- Veteran’s benefits, including VA disability compensation and military pension payments
How Does the Government Calculate the Annual Cost-of-Living-Adjustment (COLA)?
Every October, the SSA announces whether it will implement an annual cost-of-living adjustment (COLA). This COLA is designed to help keep benefits for disabled and older Americans up-to-date with inflation for the current year. The agency uses third-quarter CPI-W average data to calculate each year’s COLA for the following January. CPI-W is a shortened acronym that stands for “Consumer Price Index for Urban Wage Earners and Clerical Workers.”
To calculate the CPI-W, the government checks prices for more than 200 common household expenses from July to September. Then, they compare those prices for things like housing, transportation, medical care and food to the previous year’s costs. If the cost of living goes up, then government approves a benefit increase by the same percentage amount. But if the cost of living stays the same or goes down, then benefit calculations remain unchanged for another year.
That’s why each year’s COLA calculation cannot not guarantee it will add more money for people on benefit-related fixed incomes. The Senior Citizens League, a nonprofit advocacy group, wants Congress to replace the CPI-W with a more accurate pricing model. Its 2024 Loss of Buying Power Report shows retirees’ income now equals 80% of what it was 2010.
Over the past decade (2016-2026), the average COLA increase was 2.8% annually. Since the 2016 COLA was 0%, benefits remained unchanged for the following year. Then, beneficiaries saw a tiny .3% increase in monthly payments. The largest COLA raise since 2000 was 8.7%, which went into effect in January 2023.
2026 COLA Increase Brings Higher Checks to Older Adults on Social Security Retirement
Anyone born in 1960 or later years has a full retirement age of 67 to start drawing regular Social Security benefits. However, the SSA allows eligible claimants to apply for early retirement benefits as young as age 62. But if you retire early because of a medical condition, you’re better off applying for Social Security Disability Insurance (SSDI). That’s because Social Security reduces your monthly payments by a little less than 1% for every month you retire before age 67.
Today, more than 62 million Social Security beneficiaries get monthly retirement benefits. The average Social Security retirement check paid retirees $2,008.31 in July 2025. That average pay amount increases to $2,071 in January 2026; the maximum Social Security retirement benefit jumps to $4,152 per month.
How Much Average Social Security Disability Insurance (SSDI) Monthly Amounts Will Increase Under the 2026 COLA
Covered workers who must leave the workforce before reaching full retirement age may qualify for Social Security Disability Insurance (SSDI) payments. These payments not only cover disabled workers, but can also provide dependent benefits to eligible spouses and children. In September 2025, the SSA paid SSDI benefits to:
- 7,113,000 disabled workers
- 88,000 dependent husbands or wives
- 945,000 dependent children living at home
Here’s how those monthly amounts will change with the 2.8% COLA increase becoming payable in January 2026:
| SSDI Payment Type | 2025 Amount | 2026 Amount | Amount Difference |
|---|---|---|---|
| Maximum amount in monthly benefits | $4,018 | $4,152 | +$134 |
| Average amount for individual disabled workers | $1,586 | $1,630 | +$44 |
| Average monthly amount for a disabled worker, spouse, and one or more children | $2,857 | $2,937 | +$80 |
If you currently get SSDI, expect to see the latest COLA increase in your January 2026 payment. Check the SSA’s payment schedule for 2026 based on your birth date here.
Important: Applying for SSDI at 62 instead of early retirement guarantees you'll get 30% more Social Security income for life. Get more answers to your disability FAQs.
Supplemental Security Income (SSI) Recipients Also Get a Modest Boost in Pay Starting December 2025
Supplemental Security Income (SSI) is a needs-based federal program that pays benefits to the poorest eligible applicants. To qualify, you must be blind, disabled, or at least 65 years old and unable to work at all for one year. Since the Social Security Administration manages the SSI program, those average pay amounts also get a 2.8 percentage increase.
In September 2025, the SSA paid SSI benefits every month to:
- 1,018,000 disabled or blind children
- 3,910,000 disabled or blind adults
- 2,509,000 older adults (i.e., more than 65 years old)
Adults and children who currently receive these benefits can expect higher SSI payments starting on December 31, 2025. Here’s how the 2026 COLA increase will affect monthly payments for SSI beneficiaries:
| SSI Beneficiary Type | 2025 SSI Amount | 2026 SSI Amount | Amount Difference |
|---|---|---|---|
| Eligible individual | $967 | $994 | +$27 |
| Eligible couple | $1,450 | $1,491 | +$41 |
| Essential person | $484 | $498 | +$14 |
How the Social Security COLA Impacts VA Benefits for Veterans
The 2.8% benefit increase also applies to veterans receiving these monthly benefits from the U.S. Department of Veterans Affairs (VA). In January 2026, a VA benefit pay increase goes into effect for:
- Military pensions. Retired military personnel can get an extra $28 per month in 2026 for every $1,000 they currently receive in pension income.
- VA disability benefits. Payments for service-connected disabilities with a 10% rating will increase $4.91 per month. Veterans with a 100% rating and no dependents can expect an additional $107.28 per month in VA disability pay.
- Survivor benefits. Eligible family members of deceased service members can expect a similar increase in monthly payments as military retirees.
Medicare Costs Are Also Changing Due to the January 2026 COLA Increase
Retirees and SSDI beneficiaries will also see higher Medicare premiums and other key cost changes beginning in January 2026:
| Medicare Benefit Type | 2025 Cost | 2026 Cost | Annual Cost Difference |
|---|---|---|---|
| Medicare Part A hospital inpatient deductible | $1,676 | $1,736 | +$60 |
| Medicare Part B monthly premium | $185 | $202.90 | +$17.90 |
| Medicare Part B annual deductible | $257 | $283 | +$26 |
| Medicare Part D max out of pocket costs | $2,000 | $2,100 | +$100 |
How to Get Free Help Qualifying for Social Security Disability Benefits Faster
If health problems force you to stop working before you reach full retirement age, don’t apply for regular Social Security payments. Disability benefits will pay you up to 30% more money every month for the rest of your life, if you’re eligible. Even worse, once you start drawing early retirement, it’s impossible to qualify for Social Security disability benefits. The only way your payment will ever go up is in years with an annual COLA increase to keep up with inflation.
Why not schedule a free consultation with a nearby Social Security attorney to help you understand all your income options? We can match you with one who can tell you whether you may qualify for SSDI or SSI before you start the application process.
Working with an attorney triples your benefit approval odds within 180 days after you apply for disability. But what you might not know is that all disability attorneys work on contingency. That means if you don’t get disability payments, you owe your lawyer $0 for helping with your claim. And the lawyer’s fee doesn’t come out of those benefits, either. You’re more likely to get a year’s worth of back benefits paid at once (~$20,000) from Social Security with an attorney. That’s where attorney fees come from, not your own pocket.
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Lori Polemenakos is Director of Consumer Content and SEO strategist for LeadingResponse, a legal marketing company. An award-winning journalist, writer and editor based in Dallas, Texas, she's produced articles for major brands such as Match.com, Yahoo!, MSN, AOL, Xfinity, Mail.com, and edited several published books. Since 2016, she's published hundreds of articles about Social Security disability, workers' compensation, veterans' benefits, personal injury, mass tort, auto accident claims, bankruptcy, employment law and other related legal issues.
