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The Official 2026 Social Security Raise: 5 Critical Changes Seniors Must Know Now

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The answer is a definitive yes, but the better question is about the next one. As of late December 2025, the 2.5% Cost-of-Living Adjustment (COLA) for 2025 is already a reality, having been implemented in January 2025. However, the most critical and current news for all beneficiaries is the official announcement of the *next* raise—the 2026 Social Security COLA—which will determine benefit amounts for the coming year.

This article provides the most up-to-date, confirmed figures from the Social Security Administration (SSA) and the Centers for Medicare & Medicaid Services (CMS) regarding the 2026 benefit year. The new information, released in the last few months of 2025, confirms that a 2.8% raise is coming, but it also reveals significant increases in Medicare costs and other limits that will impact millions of retirees, disabled workers, and survivors.

The Definitive 2025 and 2026 Social Security Cost-of-Living Adjustments (COLA)

The Cost-of-Living Adjustment (COLA) is the annual increase in Social Security and Supplemental Security Income (SSI) benefits. It is calculated based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year. This adjustment is designed to help beneficiaries maintain their purchasing power against inflation.

The 2025 COLA, which was based on inflation data from 2024, was a 2.5% increase. This adjustment has already been factored into monthly checks throughout 2025.

The major news, and the "raise" seniors are now focused on, is the official 2026 COLA. The Social Security Administration (SSA) has announced that benefits for approximately 75 million Americans will increase by 2.8% in 2026. This raise is a direct response to the inflation rates measured in 2025 and is slightly higher than the 2025 adjustment.

What the 2.8% COLA Means for Your Monthly Check

A 2.8% increase translates to a significant boost in the average monthly benefit amount. These figures are projections based on the new 2026 COLA and provide a clear picture of the financial impact for millions of beneficiaries.

  • Average Retired Worker: The estimated average monthly benefit for all retired workers will increase from $2,015 to $2,071 in 2026. This represents an increase of $56 per month.
  • Average Aged Couple: The average benefit for an aged couple, both receiving benefits, is projected to rise from $3,120 to $3,208.
  • Maximum Benefit at Full Retirement Age (FRA): The maximum Social Security benefit for a worker retiring at Full Retirement Age (FRA) in 2026 will also increase, reflecting the higher wage base.
  • SSI Payments: Increased payments to nearly 7.5 million people receiving Supplemental Security Income (SSI) will begin on December 31, 2025.

5 Critical Social Security and Medicare Changes for 2026

While the 2.8% COLA is the most anticipated change, several other major adjustments to Social Security and Medicare will take effect in January 2026. These changes impact high-income earners, those still working, and all beneficiaries enrolled in Medicare Part B.

1. The Medicare Part B Premium Hike: The COLA Offset

Perhaps the most critical financial change for seniors is the increase in the standard monthly premium for Medicare Part B. This cost is typically deducted directly from Social Security benefits, often consuming a significant portion of the COLA.

  • 2025 Standard Premium: $185.00
  • 2026 Standard Premium: $202.90
  • Monthly Increase: This represents a substantial increase of $17.90 per month, or just under 10%.

This premium increase is a major consideration for the "raise" seniors receive. For the average retired worker receiving a $56 monthly increase, the $17.90 Medicare Part B premium hike will immediately reduce the net raise to $38.10 per month. The Centers for Medicare & Medicaid Services (CMS) attributed the increase to rising healthcare costs and adjustments to prescription drug spending.

2. Maximum Taxable Earnings Jumps Significantly

The maximum amount of earnings subject to the Social Security tax (OASDI tax) is increasing significantly in 2026. This change primarily impacts high-income workers, but it is a key factor in the long-term funding of the Social Security program.

  • 2025 Maximum Taxable Earnings: $176,100
  • 2026 Maximum Taxable Earnings: $184,500
  • Increase: This is an $8,400 increase in the wage base, meaning high-earners will pay Social Security tax on $8,400 more of their income.

The Old-Age, Survivors, and Disability Insurance (OASDI) tax rate remains at 6.2% for employees and employers each, but the higher wage base means the maximum Social Security tax paid by an employee will increase from $10,918.20 to $11,439.00.

3. Full Retirement Age (FRA) Continues to Rise

The Full Retirement Age (FRA)—the age at which you can claim 100% of your Social Security benefits—is continuing its slow, scheduled increase toward age 67. For those turning 62 in 2026 (i.e., people born in 1964), their FRA will be 67. This is a critical factor for retirement planning and claiming strategies.

4. Earnings Limit for Workers Under FRA Increases

For individuals who have not yet reached their Full Retirement Age (FRA) and are still working while collecting Social Security benefits, there is an annual earnings limit. If they earn over this limit, a portion of their benefits is temporarily withheld.

  • 2025 Earnings Limit (Under FRA): $22,320 (The SSA withholds $1 for every $2 earned over the limit).
  • 2026 Earnings Limit (Under FRA): This limit is also expected to increase, though the exact final figure is tied to wage growth.

For people reaching their FRA in 2026, a different, higher earnings limit applies before the month they reach FRA, which is set to increase to $65,160. The SSA withholds $1 from benefits for each $3 earned over this higher limit. Once a beneficiary reaches FRA, the earnings limit is completely removed.

5. The Hold Harmless Provision and Medicare Premiums

The "Hold Harmless" provision is a key protection for most current Social Security beneficiaries. It ensures that the dollar amount of the Medicare Part B premium increase does not exceed the dollar amount of the COLA increase.

Since the 2026 COLA (2.8%) is greater than the $17.90 Part B premium increase for most beneficiaries, the majority of seniors will be protected. They will not see a net reduction in their Social Security benefits. However, those with higher incomes subject to the Income-Related Monthly Adjustment Amount (IRMAA) are not protected by this provision and will pay the full, higher Part B premium and surcharge amounts.

Topical Authority: Understanding the COLA Calculation

Understanding how the COLA is determined provides crucial context for why the raise is 2.8% and not a higher or lower figure. The formula relies exclusively on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks the prices of a basket of goods and services.

The calculation is a simple comparison: the average CPI-W for the third quarter (July, August, and September) of the current year (2025) is compared to the average CPI-W for the third quarter of the last year a COLA was enacted (2024). The percentage increase between these two averages becomes the COLA for the following year (2026).

Many senior advocacy groups, including The Seniors League and others, continue to lobby for a change in the COLA calculation method, proposing the use of the Consumer Price Index for the Elderly (CPI-E) instead of the CPI-W. They argue that the CPI-W does not accurately reflect the spending patterns of retirees, who typically spend a larger percentage of their income on healthcare and housing—categories that often experience higher inflation.

The 2.8% COLA for 2026 is the official raise, but its real-world impact will be significantly tempered by the substantial $17.90 increase in the Medicare Part B premium. Seniors must review their new benefit statements carefully to understand their net increase and plan their 2026 budget accordingly.

The Official 2026 Social Security Raise: 5 Critical Changes Seniors Must Know Now
Are seniors getting a raise in 2025?
Are seniors getting a raise in 2025?

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