Social Security Announces New Cost-of-Living Adjustment (COLA) Checks – What You Need to Know

The Social Security Administration (SSA) has officially announced the new Cost-of-Living Adjustment (COLA) for the upcoming year. This adjustment is intended to help beneficiaries keep up with rising inflation and the increasing cost of everyday essentials. Millions of Americans—including retirees, disabled individuals, and others who rely on Social Security—will see changes to their monthly payments.

This year’s COLA will be a 2.8% increase, notably lower than last year’s historic 8.7% adjustment. Still, more than 70 million beneficiaries will experience higher monthly payments beginning in January 2026.

Key Details

Effective Date:
The new COLA will be reflected in all Social Security checks starting January 2026.

Average Monthly Benefit:
The average retired worker will receive an increase of about $56 per month, raising the average benefit to $2,071.

Predicted Benefits for 2026 (Ages 54–65+)

Based on current estimates, beneficiaries in different age categories can expect modest increases in their total Social Security benefits by 2026. While exact amounts vary depending on work history and earnings, the 2.8% COLA will apply across the board to all eligible benefits.

Important Note on Payroll Taxes (FICA)

For most employees, the standard FICA tax withholding is 7.65%, covering two major federal programs:

• 6.2% goes toward Social Security (OASDI) up to the current taxable wage limit.
• 1.45% applies to all gross income for Medicare (HI).

High-income earners should also be aware of an additional tier introduced in 2013:

• Individuals earning more than $200,000 (or $250,000 for married couples filing jointly) pay an Additional Medicare Tax of 0.9%.
• This surcharge is calculated separately and is not included in the standard 7.65% rate.

Why the COLA Matters

The annual COLA adjustment is crucial for helping beneficiaries maintain financial stability amid rising costs. Essentials such as food, healthcare, and housing continue to increase in price—often faster than general inflation—making COLA adjustments especially important for people living on fixed incomes.

Although this year’s increase will provide some relief, many experts argue that it may still fall short of covering the full rise in actual living expenses, particularly for medical care.

What You Should Do

1. Check Your Updated Benefit Amount
Your new benefit reflecting the COLA increase will arrive in January 2026. Review your payment to ensure the increase has been applied correctly.

2. Stay Informed
The SSA will send official notifications detailing your updated benefit amount in December. Make sure to read any letters or digital updates carefully.

Where to Learn More

For additional information about the 2026 COLA and how it may affect you, visit trustworthy sources such as:

• The official SSA website
• AARP
• Medicare.gov

These platforms provide up-to-date guidance for beneficiaries and can help you better understand changes to your Social Security benefits.