How is the COLA determined?

The COLA is determined by increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers for July, August, and September, compared to the same three months for the previous year. If the CPI-W for these three months in the current year has increased over the previous years, the percentage increase is the COLA.

Will Medicare premiums increase in 2026?

The 2026 Social Security COLA is a slightly above-average increase, but there's another unwelcome development for millions of seniors: Medicare participants will pay higher premiums next year. Premiums for Medicare Part B, which covers doctor visits and other outpatient care, will rise in 2026. That means Social Security beneficiaries won't see their full COLA reflected in their monthly benefit since most recipients have Part B premiums deducted from their benefits. By law, Medicare Part B premiums cannot increase by more than the COLA in the same year.

What is the Social Security COLA for 2026?

The Social Security COLA for 2026 is 2.8%.

What is the Social Security program?

The Social Security program is a federal program that provides benefits to workers when they retire or become disabled. The program also provides benefits to surviving relatives of deceased workers. It's funded primarily by payroll taxes paid by workers and their employers.

Do all Social Security recipients receive a COLA?

Yes, all Social Security beneficiaries receive a COLA, whether they're receiving retirement, disability, or survivor benefits. COLAs also apply to Supplemental Security Income (SSI), a needs-based program that the Social Security Administration oversees.

Bars

Learn how cost-of-living adjustments are determined and how it breaks down for the average beneficiary.

By Kailey Hagen – Updated Oct 29, 2025 at 9:11 AM EST | Fact-checked by Margo Winton Parodi

Key Points

The 2026 Social Security COLA is 2.8%, which reflects rising inflation.
The average monthly payment will increase by $56.
Seniors on Medicare will also see their Part B premiums rise, reducing the net benefit.

A cost-of-living adjustment, or COLA, is an inflation-based increase rolled out annually to all recipients of Social Security and Supplemental Security Income (SSI). For 2026, the Social Security COLA is 2.8%. We'll explain below exactly what that means for recipients.

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The 2026 COLA will bump the average retired worker's monthly payment from $2,015 to $2,071, a $56 increase. The COLA takes effect in December, and the updated benefits are paid out starting in January 2026.

The 2026 Social Security raise is higher than the 2.5% beneficiaries received in 2025, but lower than the 3.2% COLA for 2024 and the 8.7% COLA for 2023. The 2023 increase was the highest since 1981 and the fourth-largest COLA in the program's history.

From 2010 to 2019, COLAs were 2% or less in eight out of 10 years. However, soaring inflation triggered by the COVID-19 pandemic resulted in the highest COLA in more than 40 years in 2023. The smaller COLAs since then reflect cooling inflation. Inflation in July, August, and September 2025 determined the COLA that Social Security and SSI beneficiaries will receive in 2026.

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How Much Do I Need to Retire Comfortably?

The end of work doesn't mean the bills stop. How much should you save for a great retirement?

How Much Money Should I Have Saved by 25?

Young people should have this much saved by age 25 for a comfortable retirement.

History of Social Security COLA Increases by Year

See how the COLA for each year has changed from 1975 to 2026.

Everything You Need to Know About Social Security Benefits in 2026

This government program supports those who need it, using funds from specific taxes.

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Social Security COLA FAQ

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About the Author

Kailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning. Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.

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The Motley Fool has a disclosure policy.

What You Should Know About Social Security COLAs

Learn how cost-of-living adjustments are determined and how it breaks down for the average beneficiary.

Key Points

How Much Do I Need to Retire Comfortably?

How Much Money Should I Have Saved by 25?

History of Social Security COLA Increases by Year

Everything You Need to Know About Social Security Benefits in 2026

Social Security COLA FAQ

How is the COLA determined?

Will Medicare premiums increase in 2026?

What is the Social Security COLA for 2026?

What is the Social Security program?

Do all Social Security recipients receive a COLA?

About the Author

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Premium Investing Services

Social Security COLA FAQ

How is the COLA determined?

Will Medicare premiums increase in 2026?

What is the Social Security COLA for 2026?

What is the Social Security program?

Do all Social Security recipients receive a COLA?

What is the Social Security COLA?

What is the Social Security COLA for 2026?

How Much Do I Need to Retire Comfortably?

How Much Money Should I Have Saved by 25?

History of Social Security COLA Increases by Year

Everything You Need to Know About Social Security Benefits in 2026

How is the Social Security COLA calculated?

Related retirement topics

When can I start collecting Social Security?

FAQ