Social Security benefits are increasing in 2026. That’s good news for retirees. However, it’s important for seniors to understand just how much of a benefit increase they can expect to see, so they’ll be better prepared for how far their money goes.
So, how much will the average Social Security benefit increase next year? Here’s what seniors need to know about the upcoming benefits bump.
How much will the average Social Security benefit increase in 2026?
In Social Security benefits will increase by 2.8% in 2026. This is the Cost of Living Adjustment (COLA) that will apply next year.
In most years, COLAs increase Social Security benefits. The purpose of COLAs is to help Social Security recipients avoid losing buying power due to the effects of inflation. Third-quarter data from a consumer price index is reviewed, and when it reveals rising prices, benefits go up based on the year-over-year increase in the cost of a basket of goods and services.
The 2.8% raise is applied to your current Social Security benefit. Based on August 2025 data from the Social Security Administration, the average monthly Social Security benefit is $2,008.31. When you apply a 2.8% raise to the average benefit, you can see that the typical retiree will get around $56.23 more per month next year.
This number is not exact, as the formula for determining COLAs is a little bit more complicated and involves applying the raise to your standard benefit and then adjusting for early or late claims. Still, it gives you a fairly good idea of how much your benefit check will increase if your Social Security monthly payments are around the average.
You can estimate how much your own benefit will go up by multiplying 2.8% times your current payment. The Social Security Administration will also be providing official notice of your raise in late November if you have a mySocialSecurity account or in early December if you receive your notification by mail.
Medicare premium increases could mean some retirees don’t see the full raise
It is important that you realize your monthly payment may not increase by 2.8%, even though that is the amount of the COLA next year. For many retirees, Medicare premiums are automatically withdrawn from benefit payments, and if you are one of them, then you won’t see your check go up by as much as you expect.
Medicare premiums will increase by $17.90 in 2026. This reflects almost a 10% increase, as the current Medicare premium amount for 2025 is $185 per month, and the premium will be $202.90 per month in 2026. The extra $17.90 will be taken from your Social Security check if you pay premiums for Medicare Part B out of it.
Retirees should be aware that Medicare will take up a good portion of their COLA, and they should also know that many experts believe that these benefit increases don’t actually prevent retirees from experiencing a buying power decline. There are potential issues with the formula used to calculate COLAs that have resulted in the benefits increase falling short in many years.
Still, retirees will get some additional money next year and may want to consider revising their budget or working with a financial advisor who can help them better understand how to make the most of it.
For those who worry that Social Security benefits are experiencing buying power declines and who have concerns about supporting themselves later in life, it may also be worth exploring investment options like annuities that can provide guaranteed income to supplement Social Security. Some annuities also have COLAs built in to protect against inflation, so if you have both an annuity and a Social Security check coming in, you’ll have multiple income sources that go up as prices do. This can help ensure you can still afford your lifestyle many years into retirement when your other account balances may be starting to decline.
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