As inflation continues to squeeze household budgets, millions of retirees are keeping a close eye on the upcoming Social Security Cost-of-Living Adjustment (COLA) for 2026.
This annual boost helps older Americans maintain purchasing power amid rising costs of essentials like food, rent, and healthcare.
The Social Security Administration (SSA) is expected to announce the official COLA rate soon, originally set for October 15, 2025.
However, due to the ongoing federal government shutdown, the release may be delayed until agencies like the Bureau of Labor Statistics (BLS) resume full operations.
What to Expect from the 2026 COLA Increase
Early projections suggest a 2.7% COLA increase for 2026. While the percentage applies nationwide, the actual dollar increase depends on each retiree’s current benefit.
Those living in high-income states, where retirees generally receive larger monthly payments, will see the biggest financial boost.
For instance, someone earning $2,100 per month could see roughly $57 more each month, while retirees with lower benefits may see smaller adjustments.
If you could use a little extra help, see what benefits you can claim here.
10 States Expected to See the Highest COLA Boosts in 2026
According to current Social Security data, retirees in these 10 states will receive the largest average dollar increases thanks to higher baseline benefits:
-
New Jersey – $2,172
-
Connecticut – $2,159
-
Delaware – $2,139
-
New Hampshire – $2,121
-
Maryland – $2,084
-
Michigan – $2,067
-
Washington – $2,061
-
Minnesota – $2,053
-
Massachusetts – $2,021
-
Indiana – $2,016
These states’ retirees could see hundreds of dollars more annually starting January 2026, once the new COLA adjustment takes effect.
Why Some States Benefit More
The size of your COLA increase depends on your lifetime earnings and the state’s median income level.
States with higher living costs tend to have retirees who earned higher wages and therefore receive higher base benefits.
This results in larger dollar-value increases, even though the percentage rate is the same for all recipients.
-
Get the latest updates and tips delivered straight to your inbox!
Subscribe Now to explore exclusive benefits, eligibility insights, and more resources.
