22 Jan 2026 Social Security Update for 2026: What the New Adjustment Means to You
2026 Social Security COLA Increase
Social Security beneficiaries will see a 2.8% cost of living adjustment (COLA) beginning January 2026, increasing monthly benefit payments for tens of millions of recipients.
Why the Adjustment Matters
The adjustment, announced by the Social Security Administration, is intended to help benefits keep pace with inflation. For many recipients, this increase may amount to approximately $50 more per month, helping offset higher costs for essentials such as groceries, fuel, and utilities.
How the 2026 COLA Is Calculated
The 2026 COLA is based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI W), calculated by the Bureau of Labor Statistics. The index compares average prices from July through September of 2024 and 2025 to measure inflation.
Preserving Purchasing Power
While the increase may seem modest, this annual adjustment plays an important role in preserving the purchasing power of Social Security benefits, especially in today’s uncertain economic environment.
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