How Social Security’s Average Benefit is Changing in 2026

There are many older Americans who collect Social Security for decades. That’s because those benefits can start as early as age 62, and they continue for many people into their 90s.

The problem is that over time, things tend to cost more due to inflation. So it’s important to have a way for Social Security benefits to keep up with rising costs.

That’s where Social Security’s cost-of-living adjustments (COLAs) come into play.

COLAs became automatic in the mid-1970s, which means that each year, Social Security benefits are eligible for an increase based on inflation.

If there’s an uptick in inflation from one year to the next, Social Security benefits get a boost. If there’s no increase in inflation, or if there’s a decrease, Social Security benefits don’t get boosted but also don’t get reduced.

Meanwhile, the Social Security Administration just announced an official COLA for 2026. But the impact it will have on your benefits will depend on your situation.

How the typical Social Security benefit is changing

Social Security’s 2026 COLA is going to be 2.8%. That’s a notch higher than the 2.5% raise seniors on Social Security received at the start of 2025.

The average Social Security retiree benefit today is a little more than $2,000. With a 2.8% COLA, the typical retiree benefit in 2026 will rise by about $56.

Now on one hand, a $56 monthly raise isn’t much to write home about. However, it still amounts to an extra $672 in the course of a year. For some seniors, that’s a nice boost to their income.

However, there are some seniors who may not get to keep their Social Security COLA in full in 2026. People in that situation may end up disappointed with their upcoming COLA, even if it’s more generous than the raise they received at the start of 2025.

Why you may not get to keep your COLA in full

Anyone who receives retirement benefits from Social Security is eligible for a COLA in 2026. This includes people who are collecting spousal benefits.

However, seniors on Medicare may not get to keep their COLA in full. That’s because Medicare Part B premiums are paid directly out of Social Security. And if the cost of Part B rises a lot in the new year, which is expected to happen, it will eat into enrollees’ COLAs.

Initial projections say that the standard Part B premium could increase by $21.50 in the new year. If the average Social Security benefit is eligible for about a $56 increase, when we subtract $21.50, it amounts to a boost of just $34.50 per month, or a little over $400 per year.

Of course, any Social Security raise that comes through is better than none. There have been years in the past when Social Security recipients received no COLA at all, or a much smaller increase than 2.8%.

But the reality is that 2026’s Social Security COLA may not do a whole lot of good for many seniors. It’s important to recognize that before the new year gets underway.