The Social Security Administration has announced a 2.8% Cost-of-Living Adjustment (COLA) for 2026. This increase marks a slight rise from the 2025 COLA of 2.5%. The adjustment will benefit Social Security recipients, military retirees, and veterans, going into effect in January.
Details of the 2026 COLA
The new COLA will impact nearly 71 million individuals receiving Social Security benefits, with an average monthly increase of $56. Specific adjustments include:
- A military retiree receiving $2,500 per month will see an increase of about $70.
- A veteran collecting $1,500 monthly will receive an additional $42.
Impact on Veterans’ Benefits
In 2024, Congress enacted legislation that aligns increases in veterans’ benefits with Social Security COLA adjustments. This means the 2026 increase will apply to:
- Disability compensation
- Clothing allowances
- Dependency and indemnity benefits
- Other VA assistance programs
The COLA is crucial for ensuring that benefits keep pace with inflation. It is calculated based on the Consumer Price Index, which measures the costs of a broad range of goods and services.
Historical Context of COLA Increases
Looking back at recent years, COLA increases have varied significantly:
| Year | COLA Increase (%) |
|---|---|
| 2024 | 2.5 |
| 2023 | 3.2 |
| 2022 | 8.7 |
| 2021 | 5.9 |
| 2020 | 1.6 |
In 2025, the 2.5% COLA was the lowest increase since before the COVID-19 pandemic. Officials will inform beneficiaries of their new benefit amounts by mail starting early December.
