What the 2026 Social Security COLA Means for Your Clients

Social Security checks will rise in 2026 thanks to the annual cost-of-living adjustment. Here’s what that looks like in dollars — and what it means for retirees.

The Social Security Administration (SSA) has announced a 2.8% cost-of-living adjustment (COLA) for benefits payable beginning January 2026.

For a retiree receiving the average benefit (~$2,008/month), that translates to about $56 more per month, on average.

The increase also means the maximum taxable earnings under Social Security payroll tax will rise from $176,100 in 2025 to $184,500 in 2026.

Why this matters:

That extra ~$56/month isn’t negligible — it helps offset inflation for millions of benefit recipients.
However, the 2.8 % bump trails inflation in key categories (e.g., medical care, housing) for older Americans.
Because the COLA is relatively modest, it underscores why retirement income diversification remains crucial.

Bottom line:
If your client is counting on Social Security as a major income source, this update is helpful — but not a “solve everything” boost. Use the increase as a prompt to revisit budgets, inflation assumptions, and supplemental income strategies for next year.

Social Security checks will rise in 2026 thanks to the annual cost-of-living adjustment. Here’s what that looks like in dollars — and what it means for retirees.

The Social Security Administration (SSA) has announced a 2.8% cost-of-living adjustment (COLA) for benefits payable beginning January 2026.

For a retiree receiving the average benefit (~$2,008/month), that translates to about $56 more per month, on average.

The increase also means the maximum taxable earnings under Social Security payroll tax will rise from $176,100 in 2025 to $184,500 in 2026.

Why this matters:

That extra ~$56/month isn’t negligible — it helps offset inflation for millions of benefit recipients.
However, the 2.8 % bump trails inflation in key categories (e.g., medical care, housing) for older Americans.
Because the COLA is relatively modest, it underscores why retirement income diversification remains crucial.

Become a member to continue reading. I offer both free and paid memberships.

Memberships

What the 2026 Social Security COLA Means for Your Clients

Why this matters:

Why this matters:

Become a member to continue reading. I offer both free and paid memberships.

It all starts with hello.