Every year, the Social Security Administration (SSA) reviews inflation and adjusts benefits to help retirees and people with disabilities maintain their purchasing power. This annual change, known as the cost-of-living adjustment (COLA), keeps income in step with rising prices.
For 2026, the SSA has announced a 2.8% COLA increase for Social Security and Supplemental Security Income (SSI) benefits. More than 75 million Americans will see this adjustment, and it may also affect Medicare premiums and IRMAA brackets (Income-Related Monthly Adjustment Amount).
Here’s what’s changing and how it might affect you in the year ahead.
Important Social Security Numbers for 2026
Along with the COLA, the SSA updates several key income and earnings limits each year. For 2026, here’s what’s changing:
- Maximum taxable earnings: The cap on earnings subject to Social Security tax rises to $184,500.
- Earnings limit before full retirement age: You can earn up to $24,480 in 2026 before benefits are reduced. For every $2 earned above that, $1 is withheld.
- Earnings limit for those reaching full retirement age in 2026: The limit increases to $65,160. For every $3 earned above that amount, $1 is withheld until you reach full retirement age.
- No earnings cap applies once you’ve reached full retirement age for the entire year.
How to Find Out About Your New Benefit Amount
In late November 2025, most people will receive their COLA notice through their my Social Security account. These digital notices are posted securely in your Message Center, where you can download and save them for your records.
If you haven’t set up an account yet, visit SSA.gov/my account. It’s free, secure, and lets you view your benefit information anytime without waiting for a mailed notice.
Stay Alert for Scams and Fraud
Each year, scammers take advantage of the COLA announcement to trick people into sharing personal information. Remember, Social Security will never contact you by phone, text, or email asking for money or account details. Avoid clicking on links in unexpected messages and always go directly to SSA.gov for official information.
Keeping Your Record Accurate
Certain life events can affect your benefit amount or eligibility. Be sure to update Social Security if you:
- Get married or divorced
- Lose a spouse or ex-spouse
- Have a child or stepchild on your record who no longer lives with you
Promptly reporting these changes helps prevent payment errors and ensures your benefits are correct.
Why COLA Adjustments Happen
The annual COLA is tied to inflation through a government measure called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The SSA compares the CPI-W from the third quarter of one year to the next to decide if benefits should increase.
If prices rise, benefits go up by that same percentage. If prices stay flat or decrease, there’s no adjustment that year.
Automatic annual COLAs began in 1975, following legislation passed by Congress in 1972 to help ensure that Social Security benefits keep pace with the cost of living.
What the 2026 COLA Could Mean for Medicare
Even though the COLA directly increases Social Security benefits, it can also have an indirect effect on Medicare costs:
- Medicare Part B premiums: These premiums often rise slightly when benefits increase. Because most people have their Part B premium deducted from their Social Security check, your net benefit increase might be a little smaller.
- IRMAA brackets: If your income increases, even modestly, you could move into a higher IRMAA bracket and pay more for Medicare Part B and Part D.
If you have questions about how this update could affect your Medicare plan, premiums, or IRMAA status, the team at Carolina Senior Benefits is here to help. Our licensed agents stay informed about every change that could impact your coverage so you can feel confident about your healthcare and your retirement income.
