The Social Security Administration (SSA) confirmed the cost-of-living adjustment (COLA) for next year, setting it at 2.8%. This increase, applied uniformly across the country, determines the percentage increase for the approximately 75 million beneficiaries of the program.
The cost-of-living adjustment is calculated annually, based on inflation data, with the goal of preserving the purchasing power of the payments. The announcement came amid a political context marked by negotiations to prevent a government shutdown, but the Social Security benefits are not delayed because of this.
Social Security Increase 2026: What You Need to Know
Recalculated payments for retirees will begin in January 2026. For Supplemental Security Income (SSI) recipients, approximately 7.5 million people, the updated funds will be disbursed on December 31, 2025.
The SSA has structured this disbursement schedule to ensure that the adjustments are reflected at the start of the new period. The technical implementation of the new amounts requires an update to the agency’s payment systems.
Because the COLA percentage is applied individually to each person’s base pension amount, the financial impact in dollars varies significantly among beneficiaries. Those with larger retirement benefits will experience a greater net increase in monetary terms, even though the percentage rate is identical for everyone. This disparity in the absolute value of the increase is a direct consequence of the calculation formula used by the federal agency.
List of States with the Highest Retirement Benefits
An analysis by the financial services firm The Motley Fool, using data from the SSA’s 2025 Annual Statistical Supplement, identified the ten states with the highest average retirement benefits. The list is topped by New Jersey, with an average monthly benefit of approximately $2,172.
Connecticut follows with $2,159, and Delaware with $2,139. New Hampshire and Maryland rank fourth and fifth, with values of $2,121 and $2,084, respectively.
Michigan comes in sixth with an average of $2,067, while Washington and Minnesota register figures of $2,061 and $2,053. Massachusetts and Indiana round out the list, with average amounts of $2,021 and $2,016.
Guide to the New Social Security Income Limits
Alongside the COLA announcement, the SSA communicated changes to the tax parameters for 2026. The maximum income amount subject to Social Security tax, known as the maximum taxable income, will be raised to $184,500.
This adjustment directly shapes the tax base for higher-wage workers, defining the income threshold above which the corresponding tax rate applies.
Income limits for beneficiaries who continue working were also revised. For those who have not reached full retirement age by 2026, the limit will increase to $24,480. For those who do reach that age within the year, the threshold will be set at $65,160. These rules determine the amount a beneficiary can earn without reducing their monthly benefit payment.
When Will I Know How Much Are My Benefits Rising?
The process of notifying beneficiaries about their new payment amounts will begin in early December 2025. The SSA will mail a simplified, one-page notice to all beneficiaries. This document, according to the agency, uses plain, personalized language and includes exact dates and the dollar amounts of the revised individual payment.
For those who prefer digital communication, the SSA has established a procedure. Users must create an account or log in to the mySocial Security portal and select the option to opt out of receiving paper notices. This process must be completed before November 19, 2025, to ensure that the COLA notification is received exclusively electronically.
Payment Dates Go as Usual for Social Security Recipients
If you’re expecting your Social Security payment this November, don’t worry, everything is proceeding as usual despite any government disruptions. Benefits are being deposited as always, based on your birthdate or when you started receiving them. If you began receiving benefits before May 1997 (or if you receive both Social Security and SSI), your payment arrived on November 3.
For everyone else, if you were born between the 1st and 10th, expect it on November 12th; from the 11th to the 20th, on the 19th; and from the 21st to the 31st, on the 26th.
As for SSI payments, since November 1st falls on a Saturday, they should have already arrived by Friday, October 31st, so you can plan without stress. Remember that these direct deposits are the safest and fastest option, and if something seems off, check your account or call the SSA.
