The COLA is tied to changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation that tracks the cost of goods and services nationwide. This annual adjustment ensures that Social Security benefits maintain their real-world purchasing power as prices increase.
For 2026, the SSA has announced a 2.8% increase in benefits. This adjustment takes effect on December 31, 2025, and beneficiaries will see the higher amount reflected in their January 2026 payments.
What This Means for Beneficiaries
If you currently receive Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI), your monthly payment will automatically increase beginning in January 2026. On average, disability beneficiaries can expect their monthly benefits to rise from $1,586 to $1,630. You can review your updated benefit amount by logging into your My Social Security account online.
The COLA can also impact other key figures, such as the maximum monthly benefit amount and substantial gainful activity (SGA) limits, which affect eligibility and payment levels for disability benefits. Starting in 2026, the SGA limit for non-blind individuals will increase to $1,690 per month, up from $1,620. The Trial Work Period (TWP) amount will also rise from $1,160 to $1,210 per month. Additionally, the SSI Federal Payment Standard will go up to $994 per month for individuals and $1,491 for couples.
How the 2026 COLA Stacks Up Against Previous Years
The Social Security cost-of-living adjustment (COLA) for 2026 is set at 2.8%, matching the increase from 2025. While this year’s adjustment reflects the ongoing effects of inflation, it’s far more moderate than the sharp increases seen in 2022 and 2023, when COLAs jumped 8.7% and 3.2% following record inflation levels.
Over the past decade, the 2026 COLA aligns closely with historical averages. Between 2015 and 2020, annual adjustments typically ranged from 0% to 2%, with only modest increases most years. The steep rises in 2021 (5.9%) and 2022 (8.7%) were rare spikes, driven by unusually high consumer prices.
Cost-of-Living Adjustments Over the Past 10 Years
| Year | COLA |
| 2015 | 0.0% |
| 2016 | 0.3% |
| 2017 | 2.0% |
| 2018 | 2.8% |
| 2019 | 1.6% |
| 2020 | 1.3% |
| 2021 | 5.9% |
| 2022 | 8.7% |
| 2023 | 3.2% |
| 2024 | 2.5% |
| 2025 | 2.8% |
Why the COLA Matters
For millions of Americans, including individuals receiving SSDI, SSI, and retirement benefits, even a slight COLA increase can have a significant impact.
These annual adjustments help offset rising costs for essentials such as:
- Groceries and household items
- Rent, mortgage, and utilities
- Medical care and prescriptions
- Gas, transportation, and other daily needs
Without this adjustment, the value of fixed monthly benefits would gradually decline as inflation rises, making it harder for beneficiaries to make ends meet.
Beneficiaries Affected by the COLA Increase
The COLA applies automatically to:
- Social Security Disability (SSDI) recipients
- Supplemental Security Income (SSI) recipients
- Retirees receiving Social Security
- Survivors and dependents who qualify for benefits
You do not need to apply for the COLA. The SSA automatically updates all benefit amounts each year.
How the COLA Is Calculated
The SSA bases the annual COLA on the CPI-W, calculated by the U.S. Bureau of Labor Statistics. If the CPI-W shows an increase in prices from the third quarter of the previous year, benefits are raised by that same percentage. This method ensures that the adjustment accurately reflects real changes in the cost of living.
Grimes Teich Anderson Is Here to Help
Navigating the Social Security system can be complex, especially when you’re dealing with a disability or a denied claim. The experienced Social Security Disability attorneys at Grimes Teich Anderson are here to help individuals across North Carolina and South Carolina obtain and protect the benefits they need. Whether you’re applying for the first time or appealing a denial, we’ll guide you through every step of the process, from preparing your application to representing you in hearings.
Contact us today by submitting a form online or calling our office at [phone] for a free case evaluation.