In 2026, Social Security beneficiaries are set to receive a significant cost-of-living adjustment (COLA) that will push their monthly checks above the national average, marking a historic moment for the program. For over 53 million retired workers, these monthly payments are more than just financial support; they serve as an essential lifeline, crucial for meeting everyday expenses.
A recent report from the Center on Budget and Policy Priorities highlights that in 2023, Social Security lifted 22 million individuals above the federal poverty line, including 16.3 million seniors aged 65 and older. Additionally, surveys conducted by Gallup between 2002 and 2025 indicate that between 80% and 90% of retirees rely on their Social Security income for financial stability.
Beneficiaries typically look forward to the annual COLA announcement, which usually occurs between October 10 and 15. Due to a federal government shutdown, this year’s announcement has been delayed until October 24.
The Social Security Administration (SSA) confirmed a 2.8% COLA for 2026, which will affect not just retired workers but all types of beneficiaries, including those with disabilities and survivors. Although this increase may seem modest compared to the 5.9%, 8.7%, and 3.2% adjustments made from 2022 to 2024, it is still historically significant. It marks the first time in over two decades that beneficiaries will see a minimum 2.5% increase for five consecutive years.
Projections show that this 2.8% adjustment will raise the average monthly benefit for retired workers to $2,071—a notable increase of $56. This is the first instance where the average monthly payout has exceeded $2,000, a milestone achieved in May. For individuals with disabilities, their average check is expected to rise to $1,630, up by $44.
Beneficiaries in five specific states will see their monthly benefits rise more significantly than the national average due to their relatively high earnings histories. In Connecticut, the average monthly retirement benefit is projected to increase by $60.66 to $2,227.05. New Jersey follows closely with an increase of $60.57, making the average $2,223.74. Other states with notable increases include New Hampshire ($60.11 to $2,206.90), Delaware ($59.97 to $2,201.81), and Maryland ($58.96 to $2,164.77).
The disparity in raises can largely be attributed to the earnings history of retirees in these states, which the SSA bases on various factors, including the 35 highest-earning years of an individual’s work life. States like New Hampshire, Maryland, New Jersey, and Connecticut boast high median household incomes—ranking second, third, sixth, and eighth in the U.S., excluding Washington, D.C. This higher income may not only lead to larger Social Security benefits but can also provide residents with better opportunities to save for retirement or invest.
Additionally, individuals who are able to save a considerable amount for retirement may choose to delay claiming Social Security benefits, resulting in larger monthly payouts as benefits can grow by up to 8% per year if claimed after age 62.
Overall, the 2026 COLA marks a vital adjustment that carries profound implications for millions of Americans, particularly those in states with higher average wages.
