Every Social Security retiree is going to see their monthly benefits increase in 2026. Retirees are on track for a raise because they're getting an annual cost-of-living adjustment (COLA), as they do in most years. COLAs are awarded when third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) shows that a basket of goods and services has gotten more expensive year over year.
These COLAs are a critical part of Social Security and provide essential financial support to retirees. Without them, Social Security benefits would be worth less every single year as a result of inflation, which naturally causes price increases over time. COLAs help to ensure that when you are 80, your benefits aren't still stuck at the same level as they were when you were 60 or 65, even as everything you buy has become much more expensive.
Some retirees are going to see their checks increase more than others due to the 2026 COLA, though. In fact, if your Social Security benefit is currently above a specific level, you can expect that your own check is going to go up more than the average payment.
Here's why.
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Anyone with a Social Security payment above this level will see an above-average COLA
If you are a retired worker and your current Social Security benefit is above $2,013.32 as of November 2025, then you can expect your 2026 COLA amount to be above average. That's because $2,013.32 is the average Social Security benefit for retirees as of this time period, according to the Social Security Administration's November statistical snapshot.
Having an above-average benefit results in an above-average Social Security COLA because COLAs are calculated on a percentage basis. Specifically, the COLA for 2026 is 2.8%, up from 2.5% in 2025. When you apply an adjustment on a percentage basis, someone with a larger benefit will get a larger dollar-for-dollar increase.
The specific way that your COLA is applied is a little more complicated than just multiplying the COLA percentage by your current Social Security check. Social Security actually goes back and applies the increase to your standard benefit, then adds on the extra you're entitled to if you earned delayed retirement credits, and takes away for early filing penalties, depending on whether you claimed early, late, or on time.
Still, the Social Security Administration explains that you can approximate the added money you'll get by multiplying your current benefit by the COLA, so you can get an idea of just how much more your raise could be if your benefit is above average. Say, for example, that you receive a $3,000 monthly Social Security check. A 2.8% COLA would give you roughly an $84 raise, while someone who gets the average $2,013.32 monthly benefit and who receives a 2.8% raise would get roughly $57 more per month.
Of course, the percentage increase is the same. But the dollar-for-dollar addition to your benefits check is going to be bigger if you're starting with a larger payment to begin with. Larger future raises (on a dollar-for-dollar basis) are just one of many potential reasons why you may want to make delaying a Social Security claim part of your retirement planning.
After all, the more money you get from Social Security, the less you need to take out of your 401(k) or other accounts, so why not increase your monthly benefit and future raises?
Does your COLA mean you can spend more?
So, if you get an above-average COLA, does this mean you can upgrade your lifestyle more than the typical retiree? Sadly, no.
In fact, no matter what size COLA you get, you probably aren't going to get any extra buying power from it. Remember that these "raises" are calculated to make sure you don't lose ground, and the amount of them is determined by looking at inflation.
Since that's the case, your COLA is meant to enable you to keep your purchasing habits the same, even as goods or services cost more. So you'll be shelling out more money, but usually won't be buying anything extra with the additional dollars. Keep this in mind as you make your financial plans so you have a good idea of what to expect as you create your 2026 budget.
