Social Security Payments to Rise 2.8% Next Year, But Most Seniors Say It's Not Enough to Match Inflation

In a move set to affect nearly 71 million Social Security beneficiaries, benefits are slated to increase by 2.8% in January 2026. Additionally, almost 7.5 million Supplemental Security Income recipients will see a rise in benefits from December 31.

According to reports, the announcement, initially planned for the previous week, was delayed due to the federal government shutdown.

The cost-of-living adjustment (COLA) for retirees and disabled beneficiaries, funded by payroll taxes from workers and employers, is set to increase the annual salary cap to $184,500 in 2026, up from $176,100 in 2025.

As per a report by Fortune, beneficiaries received a 2.5% COLA boost in 2025 and a 3.2% increase in 2024, following a record 8.7% increase in 2023 due to 40-year-high inflation. The smaller increase for 2026 reflects moderating inflation.

However, some seniors argue that the COLA won’t significantly improve their ability to cover daily expenses.

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“It does not match the affordability crisis we are having right now,” said Linda Deas, an 80-year-old resident of Florence, South Carolina told the outlet.

AARP polling shows that only 22% of Americans over age 50 believe a COLA of around 3% is sufficient to keep up with rising prices, with 77% disagreeing.

The Social Security Administration has been dealing with numerous challenges in recent months, including mass layoffs as part of the Trump administration’s efforts to reduce the federal workforce.

The agency also faces a looming bankruptcy date if Congress does not intervene. The June 2025 Social Security and Medicare trustees' report states that Social Security's trust funds will be unable to pay full benefits from 2034.

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