Social Security Checks to Rise 2.8% in 2026, Offering Modest Relief to Retirees

The Social Security Administration has announced a 2.8% cost-of-living adjustment (COLA) for 2026, increasing monthly benefits for more than 71 million Americans starting in January. The adjustment, based on inflation data from the third quarter of 2025, is intended to help retirees, disabled individuals, and Supplemental Security Income (SSI) recipients keep pace with rising costs.

What It Means for Alabama Families

For the average retire receiving $2,000 per month, the 2.8% increase translates to an additional $56 monthly-or roughly $672 annually. SSI recipients will see their first adjusted payment on December 31, 2025.

While the increase is slightly higher than last year's 2.5% bump, many seniors say it still falls short of covering rising expenses, especially in healthcare, housing, and utilities. AARP surveys show that older Americans often need closer to a 5% annual increase to maintain purchasing power.

How COLA Is Calculated

The COLA is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which tracks changes in the cost of everyday goods and services. The Social Security Act mandates this annual adjustment to ensure benefits reflect economic realities.

What's Next

Recipients will begin receiving COLA notices in December, either by mail or through their online "my Social Security" accounts. Those enrolled in Medicare will also receive updated benefit information later in the fall.

As Alabama families prepare for 2026, this modest increase may help offset winter heating bills or rising grocery costs-but many advocates say more reform is needed to ensure long-term retirement security.