The Social Security Administration has confirmed an increase in retirement payments for 2026.
The agency announced that the cost-of-living adjustment (COLA) will be 2.8% which means retirees will receive about $56 more per month on average starting in January.
Over the past 20 years, the COLA has averaged 2.6% each year while in 2025, the adjustment was 2.5%.
This increase is also much smaller than the larger adjustments given in previous years when inflation was much higher.
As per multiple reports, many seniors feel these annual increases still don't keep up with their growing expenses.
Social Security serves as the main source of income for roughly 40% of older Americans.
Around 71 million people including seniors and those with disabilities receive Social Security.
“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,” Social Security Administration Commissioner Frank J. Bisignano said in a statement, as per CNBC.
In total, 75 million Americans receive benefits from the agency including Social Security or Supplemental Security Income (SSI) with some receiving both types.
The Social Security's annual increase is based on inflation from the third quarter of the year.
