Let’s be honest—every little bit helps. Starting this January, millions of folks who depend on Social Security and SSI will see a small boost in their monthly deposits. It’s a response to the rising costs we’ve all been feeling, though honestly, it never feels like quite enough.
The Social Security Administration (SSA) just set the annual cost-of-living adjustment, or COLA, at 2.8% for 2026. That change affects nearly 75 million people. But it’s not just a straight raise—there are new rules around working, Medicare premiums, and income limits you’ll want to keep an eye on. Here’s what actually changed as we head into the new year.
Social Security COLA: So What Does 2.8% Look Like in Real Life?
For the average retiree living alone, the monthly check goes from about $2,015 to $2,071—roughly $56 more. Couples will see their benefits climb from $3,120 to $3,208 on average. If you’re on SSI, individual payments will rise from $967 to $994, and for couples, from $1,450 to $1,491.
It’s something, sure. But let’s not kid ourselves: prices at the grocery store, the pharmacy, and just about everywhere else seem to jump faster than these adjustments most years.
Medicare Also Increased for Social Security Recipients
Here’s where it gets frustrating. A good chunk of that increase gets swallowed by Medicare before it even reaches you. This year, the standard Medicare Part B premium is climbing to $202.90 a month—that’s $17.90 more than last year.
So, if you’re getting that average $56 boost, almost $18 of it is already spoken for. What’s left? About $38. It’s important to plan around that, or you might open your bank statement and wonder where the rest went.
Working While Claiming Social Security: Changes to Have in Mind
If you’re still working while collecting benefits, the rules have shifted a bit. For anyone who won’t hit their full retirement age during 2026, you can earn up to $24,480 this year without a penalty. Go over that, and they’ll hold back $1 from your benefits for every $2 you earn above the limit.
Things ease up if you reach full retirement age this year. For the months before your birthday, the limit is $65,160. If you earn more than that, they withhold $1 for every $3 over the cap. Once your birthday month arrives, the limits vanish—you can earn whatever you want with no reduction.
Check Your “My Social Security” Account for More
A couple of other things changed while nobody was looking. The maximum amount of earnings subject to Social Security taxes rose to $184,500 this year. And there’s a new tax break for anyone 65 and older: a deduction that could cut your federal taxes by up to $6,000.
That’s aimed right at people trying to stretch a fixed income. Oh, and a reminder—if you get married, divorced, or lose a spouse, make sure you tell Social Security. It really does affect what you’re owed.
Want to see your exact new amount? Log into your ‘my Social Security’ account at ssa.gov and check the Message Center. And please, remember: everything Social Security offers is free. If someone calls or emails asking for your info, it’s a scam. Seriously. And if you’re still getting paper checks, do yourself a favor and switch to direct deposit. It’s safer, and the money shows up faster. Just one less thing to worry about.
