(October 24, 2025) Social Security benefits and Supplemental Security Income (SSI) payments for more than 75 million Americans will increase by 2.8% in 2026, slightly higher than this year’s 2.5% cost-of-living adjustment (COLA), the Social Security Administration (SSA) announced today. On average, Social Security retirement benefits will increase by about $56 per month starting in January.

The average retirement benefit will increase to $2,071 per month in 2026, up from $2,015 this year. The average retirement benefit for households where both elderly spouses receive Social Security benefits will increase to $3,208 per month in 2026, up from $3,120 this year, SSA said.

The maximum retirement benefit for individuals with lifelong maximum earnings who claim Social Security benefits at their full retirement age next year will be $4,152 per month in 2026, up from $4,018 this year. People who were born from March through December 1959 will reach their full retirement age of 66 and 10 months in 2026.

Beginning in 2027, everyone born in 1960 or later will have a full retirement age of 67, the final step in the gradual full retirement age increase that was authorized by the Social Security reforms of 1983. That legislation gradually boosted the full retirement age in two-month increments from 66, for those people born from 1946 through 1954, to 67 for people born in 1960 and later.

Individuals who postpone claiming Social Security beyond their full retirement age earn an extra 8% per year (0.66% per month) for every year they delay collecting benefits up to age 70. The delayed retirement credits are in addition to the retirement benefit amount that can be collected at full retirement age.

By law, the annual inflation adjustment in Social Security benefits is based on the average inflation during July, August and September of the current year as measured by the Consumer Price Index for Urban Wage Earners. The Bureau of Labor Statistics averages the CPI-W for those three months of this year and compares it to the same period from the previous year. The percentage difference between the two COLAs determines the benefit increase for the following year. The CPI and related Social Security COLA announcement, originally scheduled for release on October 15, were delayed by the government shutdown until today.

The 2.8% COLA for 2026 follows a 2.5% increase in 2025, a 3.2% increase in 2024, a whopping 8.7% increase in 2023, and a 5.9% increase in 2022. Over the past decade, the COLA has increased an average of 3.1%.

Social Security will begin notifying people about their new benefit amount by mail starting in early December. Individuals who have set up a personal my Social Security account by November 19, 2025, can view their 2026 COLA notice online even sooner. To get started, visit www.ssa.gov/myaccount.

Individuals who claim Social Security benefits before their full retirement age and who continue earn money from wages or self-employment will be able to earn more money in 2026 before forfeiting any Social Security benefits to annual earnings limitations.

In 2026, individuals who are under full retirement age for the entire year will be able to earn up to $24,480 ($2,040 per month) and still collect full Social Security benefits. Individuals who collect Social Security benefits before their full retirement age and who earn more than $24,480 ($2,040 per month) next year will forfeit $1 in benefits for every $2 earned over that limit. That’s a $1,080 increase from this year’s annual earnings limit of $23,400 ($1,950 per month).

In the year an individual reaches full retirement age, in the months leading up to that milestone, they can earn more money without forfeiting any benefits. In 2026, the new earnings limit will be $65,160 per year ($5,430 per month), up from $62,160 in 2025 ($5,180 per month). If their earnings exceed that limit, they will forfeit $1 in Social Security benefits for every $3 earned over that limit.

Earnings restrictions disappear at full retirement age and any benefits lost due to excess earnings are restored in the form of larger monthly benefits going forward.

Social Security is funded primarily by a payroll tax of 12.4% on wages with both employers and employees paying 6.2% of gross wages up to the taxable maximum amount. Self-employed workers pay both portions of the payroll tax for a total rate of 12.4%.

Higher-income workers will pay more in payroll taxes next year as the maximum wages subject to FICA taxes will increase to $184,500 in 2026, up from $176,100 this year. The additional $8,400 of taxable wages in 2026 could boost payroll taxes by an additional $521 for high-income wage earnings and by an additional$1,042for self-employed individuals next year.

Workers who earn more than the maximum taxable amount do not pay Social Security taxes on the excess earnings. However, all earnings—even those above the Social Security taxable maximum amount—are subject to a 1.45% Medicare payroll tax. Self-employed individuals pay a combined Medicare tax rate of 2.9%. In addition, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9% in Medicare taxes.