If Social Security Pays You $1,800, Here’s How Much the Predicted 2026 COLA Adds

Social Security adjusts benefits each year, so your base benefit goes up in line with prices for pretty much everything. The change is called a cost-of-living-adjustment, or COLA. It's based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July through September.

The Social Security Administration (SSA) sets the new rate after the Bureau of Labor Statistics (BLS) releases September inflation data. For 2026, the COLA is projected to be between 2.6 and 2.8%. Understanding how the COLA works can help you when you're planning for retirement.

How COLAs are calculated

By law, the COLA equals the percentage increase in the average CPI-W for Q3 of the current year over Q3 of the last year a COLA was set. This is rounded to the nearest tenth of a percent. There is no application or extra steps necessary on your part, as the SSA applies the formula automatically. And it's reflected in your check from January.

The CPI-W is a version of the inflation index that tracks prices facing wage earners and clerical workers. It's essentially tracking what you pay for everyday goods and services. The BLS compiles and releases this data monthly. It's the release of the September data that triggers the SSA to set the new COLA rates.

What a 2.6-2.8% COLA means for an $1,800 benefit

If your benefit amount is $1,800 a month, and we take the mid-point projection of a 2.7% COLA, your gross benefit would rise by just under $49 per month. The math is 0.027 x $1,800 = $48.60 rounded. That's around $590 per year.

That extra money should help cover rising costs for food, gas, and co-pays. This is just an example, and your exact change can vary a little bit due to rounding and any deductions.

How this increase compares with recent years

The projected 2.6-2.8% increase for 2026 would be similar to the 2025 increase, but well below the big 2023 jump. So retirees will see a modest raise that helps to offset the continued rising costs, but not a significant windfall.

Medicare can shrink the impact

Two things that can shrink the COLA's impact the most are Medicare Part B premiums and ongoing inflation. Many people have Part B taken out of their Social Security, so a higher premium reduces the net amount you receive.

The standard Part B premium for 2025 is $185. The Medicare Trustees project it should rise to about $206.50 in 2026. If Part B is deducted from your benefit, that increase will come out first, so your net raise will seem smaller.

Prices at the store

While COLAs aim to keep up with inflation, they don't beat it. Plus, if prices continue to rise after the annual COLA, your budget is still going to be stretched, because you won't get another increase until the following year. So you still need to budget carefully and may need to reduce spending in some areas.

When you'll see the new amount

The 2026 COLA goes into effect with December 2025 benefits, and those are paid in January 2026. So even though it's in effect in December, you won't see it in your bank account until January. But you can still find out exactly how much you can expect before then.

In early December, the SSA posts COLA notices in the Message Center of your my Social Security account. And, if you opt for online notices instead of paper mail, you'll be able to see your updated statement faster. You can log in to review your updated statement and check any Medicare deductions so you can plan your budget around the exact amount that will hit your bank.

Bottom line

If you get a benefit amount of $1,800 per month and the median COLA projection of 2.7% is accurate, you'll get around an extra $49 per month. You'll see the higher amount in your January payment, and can preview the exact amount you'll receive in your Social Security account message center after notices get posted in early December. Remember to account for any Medicare deductions so your budget is accurate, doesn't get off track, and doesn't upset your retirement plan.