Social Security increases benefits by 2.8% for 2026

Social
Security increases benefits by 2.8% for 2026

Retirement & Longevity

The 2026 Social Security cost-of-living adjustment (COLA)
has been announced.

The Social Security Administration has announced a
cost-of-living adjustment (COLA) to recipients’ monthly Social Security and
Supplemental Security Income benefits. Nearly 71 million Americans will see the
2.8% increase in their payments beginning in January 2026.

The 2.8% increase aims to help beneficiaries keep up with
inflation. The COLA is calculated based on the Consumer Price Index for Urban
Wage Earners and Clerical Workers (CPI-W), which measures the average change in
prices over time that consumers pay for a basket of goods and services. The
COLA is designed to ensure that the purchasing power of Social Security and SSI
benefits is not eroded by inflation.

According to the Social Security Administration, on average,
retired workers currently collect $2,015 per month in Social Security payments,
or roughly $24,180 per year. The 2.8% COLA will add about $56 per month to
those payments or $672 for the year.

Keep in mind all federal benefits must be direct deposited.
So if you haven’t already started receiving benefits, you need to establish
electronic transfers to your bank or financial institution.

Kent Pendleton, AAMS®

Financial Advisor, RJFS

Pendle Hill Advisors LLC

14375 Liberty St, Ste 109 | Montgomery,
TX 77356

T 936-297-8267

Kent.Pendleton@raymondjames.com
| www.raymondjames.com/pendlehilladvisors

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Source:
Social Security Administration

The
consumer price index for urban wage earners and clerical workers is a monthly
measure of the average change over time in the prices paid by urban wage
earners and clerical workers for a market basket of consumer goods and
services.