Every year, Social Security recipients receive a cost-of-living adjustment (COLA) that increases their monthly checks. You have likely already seen this reflected in your 2026 Social Security benefits.
Here’s everything you need to know about the COLA increase and how to make the most of your Social Security check.
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What is COLA, and why does it matter?
COLA is an annual adjustment to Social Security benefits based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The Social Security Administration (SSA) compares the average CPI-W of the current year to the same period in the previous year.
If prices go up, so do benefits. This adjustment aims to ensure Americans can continue to afford essentials like food and housing that rise in price.
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The COLA increase for 2026
The COLA for 2026 is 2.8%. This means that an individual currently receiving $1,800 will see a monthly increase of close to $50.40.
You should have already seen this take effect starting in your January 2026 check.
How the 2026 COLA adjustment compares to previous years
The 2.8% COLA is much lower than in some recent years. For instance, the 2023 COLA was 3.2%, and 2022 saw a significant increase of 8.7%.
Unfortunately, these increases rarely keep pace with inflation. For instance, the 2025 increase was 2.5% even though inflation increased 2.7%. In reality, inflation has outpaced COLA adjustments in 80% of the last decade.
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Who benefits most from the COLA boost
Individuals with fixed incomes benefit the most from the COLA increase. This is true even though the SSA sends higher checks to everyone receiving retirement or disability benefits.
That’s because these individuals don’t have access to additional funds. If prices increase, they have to figure out how to pay them. COLA increases are especially essential for those without pensions or investment income.
What new average payments look like
While the net benefit of the 2026 COLA varies by individual, everyone has seen an increase in their check. For instance, the average Social Security check of a retiree is $2,071 as of January 2026. Before the COLA, the average was $2,015.
For retired couples who both receive benefits, the average monthly check is now $3,208. Before, it was $3,120. Finally, the average disability check was $1,586. After the 2026 COLA, a check of this amount is now $1,630.
How the COLA affects taxes and benefits
The 2026 COLA increase may have major tax implications. If the increase pushes you into a higher tax bracket when combined with your other income, you will end up paying more in taxes. The adjustment could also increase the taxable portion of your Social Security.
There have also been increases in health care costs. Medicare Part B premiums have increased by $17.90. Also, your Medicare Part B and D premiums will have likely increased if you’ve crossed the Income-Related Monthly Adjustment Amount (IRMAA) threshold.
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Other ways to boost your Social Security income
For many, the COLA increase is not enough to counter inflation. Fortunately, there may be other ways to keep more cash in your wallet. Simply waiting to file is an option, as your benefit increases the longer you wait, all the way up to age 70.
You can also continue working to increase your check. Benefits are based on your highest-earning 35 years. If you replace a low-earning year with a higher-earning one, your check will go up. You can also verify if you’re eligible for higher benefits on a former spouse’s record.
Bottom line
While the extra income from the COLA will help, increased Medicare premiums and persistent inflation could limit how much of it stays in your pocket. Beyond delaying benefits or working longer, you can also find ways to cut back on daily expenses.
It’s essential to review your broader retirement strategy periodically. Pairing the COLA boost with thoughtful planning can help you maintain financial stability and move closer to the goal of a truly stress-free retirement.
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