We're just weeks away from the Social Security cost-of-living adjustment (COLA) announcement that will tell you how much you can expect to receive in benefits next year. It's a pretty big deal, especially if you rely upon your checks for a significant portion of your retirement income.
COLAs are percentages, so everyone will see their checks increase by a slightly different amount. However, current projections suggest the bump won't be life-changing. Even those receiving today's largest checks won't notice a significant boost.
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How much today's wealthiest beneficiaries will get next year
In 2025, the maximum Social Security benefit is $5,108 per month, or about $61,296 per year. Few people actually receive this much because, in order to claim the max checks, you must earn the maximum taxable income -- $176,100 in 2025 -- in at least 35 years. You also have to delay your Social Security application until you turn 70. That's not something most people can afford to do.
These beneficiaries, like everyone else, will receive a COLA in the neighborhood of 2.7% for 2026. We won't know the exact amount until Oct. 15, 2025, but it'll likely be very close to this estimate.
A 2.7% increase would bump today's $5,108 maximum check by $138 to $5,246 per month. That would give the richest beneficiaries just under $63,000 in annual benefits. While that might seem like life-changing money to you, it's likely just a drop in the bucket for these wealthy seniors who have long been accustomed to a six-figure income.
The bad news for ordinary Americans on Social Security is that you likely won't see anything close to a $138 increase next year, even if the COLA comes in slightly higher than expected. The good news is you'll soon know what you can expect and you'll be able to start building a budget around it.
What to do once the government announces the COLA
The Social Security Administration will announce the official 2026 COLA on the morning of Oct. 15, 2025. Again, the COLA is a percentage, so you'll have to apply this to your current benefit to see how much more you'll get.
It's pretty easy if you know your arithmetic. Take your current monthly benefit checks and multiply them by the COLA percentage. This tells you how much more you'll get per month next year. Then, you add that amount to your existing checks.
For example, if you qualify for a $2,000 monthly benefit right now, a 2.7% COLA would give you $54 per month, bringing your 2026 benefit to $2,054 per month. The COLA will take effect with the December 2025 payment, payable in January 2026.
Once you know exactly how much you'll get next year, you can start to figure out how much of your expenses you'll have to pay for with money from retirement accounts or other sources. Take a look at your average monthly expenses and subtract an amount equal to your Social Security checks and your income from your job, if you're still working.
Then, come up with a plan to cover the remainder. This might mean falling back on personal savings or cutting back expenses to bring your budget into balance. You could also look into other government benefits to help you with your essential costs, like food and utilities. Applying for these benefits takes time, so if you think you might need them in 2026, it's best to get started as soon as possible.
The Social Security Administration should send you a personalized COLA notice in December giving your exact benefit amount. Verify that nothing looks off with this. If you're on Medicare, note how much the government will withhold from your checks to cover Part B premiums next year. Then, look over your 2026 budget one last time to see if you need to make any changes.
