The Social Security Administration announced a 2.8% cost-of-living adjustment for 2026, amounting to an average $56 monthly increase for retirees. Beneficiaries can check their personalized COLA amounts on SSA.gov or calculate it themselves by multiplying their current benefit by 2.8%.

Nearly 71 million Social Security beneficiaries will receive a 2.8% COLA increase starting January 2026. To ensure you don’t miss any news, select email or text notifications in your SSA portal. Social Security benefits make up about 31% of the income for individuals over 65, with 9 out of 10 Americans in that age group receiving benefits.

Retirees can supplement their Social Security benefits by parking some funds in high-yield savings accounts or certificates of deposit. Banks and credit unions are offering rates as high as 4% to 5%. Money market accounts also generate interest and provide easier access to funds compared to CDs.

The annual COLA increase is based on the percentage rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers. Data from the third quarter of the previous year to the third quarter of the current year determines the COLA adjustment for Social Security beneficiaries.

Setting up a My Social Security account is easy and can be done at any time. Beneficiaries need to provide an email address and additional authentication for identity verification. Once set up, the account allows managing benefits, estimating future benefits, and receiving online notices instead of by mail.

Read more at Yahoo Finance: How to find out your 2026 Social Security COLA increase