Millions of Social Security recipients will now know how much their checks will be in 2026 after new government data was released on Friday.
The Social Security Administration announced that Social Security recipients will get a 2.8% bump in checks in 2026, which represents a $56 increase for the average retiree.
The announcement following the release of the monthly Consumer Price Index report. The Social Security Administration bases its cost-of-living adjustment on the Consumer Price Index for Urban Wage Earners and Clerical Workers, which the Bureau of Labor Statistics releases monthly.
The consumer price index weighs the costs of goods based on their importance. Items like food, shelter and energy typically carry heavier weight.
Last year’s cost-of-living adjustment was 2.5%, which closely matched the 2.4% increase in consumer goods and services. About 75 million Social Security beneficiaries are scheduled to receive a cost-of-living adjustment starting in January. Nearly 7.5 million people receiving Supplemental Security Income will get the adjustment starting Dec. 31.
For the 12-month period ending in August, the consumer price index showed a 2.9% increase in prices.
"Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security," said Social Security Administration Commissioner Frank J. Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”
The Social Security Administration also said that the maximum amount of earnings subject to the Social Security tax will increase from $176,100 in 2025 to $184,500 in 2026.
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Recipients should get a letter in December notifying them of their new benefit amount.
There are long-term concerns over the future of Social Security payments.
The Committee for a Responsible Federal Budget said legislation passed in July will reduce Social Security’s revenue from the income taxation of benefits. The group says this change will cause Social Security to become insolvent sooner than previously expected. A report from Social Security’s trustees states there are enough funds to fully pay benefits until 2034, but without congressional intervention, benefits will be cut. The committee projects Social Security will become insolvent by the end of 2032.
Officials have long expressed concern about the stability of the program. As the Baby Boomer generation ages and birth rates decline, Social Security revenue is falling while its expenses are rising. Social Security paid out $1.5 trillion in benefits in 2024, accounting for about 23% of federal spending.
