Average Social Security Benefits to Rise in 2026 Amid Inflation Adjustments

Retirees will see a modest boost in Social Security payments next year as the 2026 cost-of-living adjustment (COLA) increases benefits by 2.8%. The average retired worker is projected to receive $2,071 per month, marking the first time the baseline benefit crosses the $2,000 threshold.

Payment calculations remain tied to individual earnings history and claiming age. Those who delay benefits beyond full retirement age (67 for most current workers) continue receiving higher monthly payouts, while early claimants face permanent reductions. The system's progressive structure still favors lower-income recipients through benefit calculation formulas.

Financial planners note these increases rarely keep pace with actual retiree expenses. Healthcare costs in particular continue outpacing general inflation measures used for COLA calculations. The widening gap underscores the need for supplemental retirement savings beyond government programs.