Social Security’s cost-of-living adjustment (COLA) is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), not on an individual’s spending or the CPI-U. The latest announced adjustment is 2.8% for 2026. It applies to Social Security benefits payable for December 2025, generally paid in January 2026; the resulting net increase to your own payment may differ slightly from 2.8%.
How Social Security calculates the COLA
The Bureau of Labor Statistics determines the CPI-W, and federal law uses that index for the Social Security COLA. The Social Security Administration (SSA) compares the average CPI-W for July, August, and September—the third quarter—with the average for the third quarter of the last year in which a COLA was determined. The percentage increase between those quarterly averages becomes the COLA. It is not calculated from a single month’s inflation reading.
If the comparison does not show an increase, there is no COLA for that year. The next calculation uses the last third-quarter average used to determine a COLA, so a later adjustment can reflect price increases accumulated since that point. SSA’s COLA information explains the index and comparison method; the agency’s automatic determinations describe how a zero adjustment affects later calculations.
What the 2026 COLA means
SSA announced a 2.8% COLA for 2026 on October 24, 2025, based on the CPI-W increase from the third quarter of 2024 to the third quarter of 2025. SSA estimated that the average monthly benefit for all retired workers would rise from $2,015 before the adjustment to $2,071 payable in January 2026. That is an SSA estimate for a group average, not a prediction of any one person’s benefit. The figures and comparison period appear in the 2026 COLA fact sheet.
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At the latest announced schedule, SSA said it would announce the next COLA in October 2026; the 2027 percentage is not established by the cited announcement. Check SSA’s COLA summary for the next determination rather than assuming that the 2026 rate will continue.
Why your payment may not rise by exactly 2.8%
The announced COLA does not simply multiply every person’s final deposit by the same percentage. SSA applies the adjustment to the primary insurance amount (PIA), then recalculates the payable benefit. Its steps include rounding the adjusted PIA down to the next dime, applying any early- or delayed-retirement factor, subtracting applicable deductions such as the Medicare Supplementary Medical Insurance premium, and rounding the final monthly benefit down to the next dollar. Those calculations can make the change in your gross benefit or net payment differ somewhat from the headline percentage.
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This COLA process is separate from the calculation of your original retirement benefit. SSA generally bases that benefit on average indexed monthly earnings, usually using up to 35 years of earnings, and applies a formula to determine the PIA. After entitlement, COLAs adjust the PIA and SSA recalculates the amount payable. SSA’s explanation of how a COLA applies to a retirement benefit covers the rounding and benefit steps; its benefit-amount explanation describes the initial calculation.
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For Social Security, a COLA is effective for benefits payable in December. Beneficiaries generally receive that benefit in January, so SSA describes the 2026 increase as appearing in payments received in January 2026. “December benefit” means the benefit for that month, not usually the date the money arrives. SSA’s COLA information describes the timing.
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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Supplemental Security Income (SSI) follows a different payment calendar. The increased 2026 SSI payment arrived on December 31, 2025, because January 1 was a holiday. SSA’s 2026 fact sheet gives the SSI timing and its 2026 FAQ explains when the increase begins.
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How to find your new benefit amount
- Check your my Social Security account. Retirement and disability beneficiaries can view the COLA notice online. SSA says you do not have to wait for the mailed notice to learn your new amount.
- Look for the mailed notice in December. SSA sends COLA notices throughout the month. If yours has not arrived, SSA advises waiting until January before contacting the agency about the mailing.
- Compare the stated benefit with your deposit. The notice gives your benefit amount; the amount deposited can be lower if deductions, including a Medicare premium, apply. The 2.8% announcement alone is not enough to calculate your personal net deposit.
These notice details are in SSA’s 2026 FAQ.
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