Nearly 71 million Americans receiving Social Security benefits will see a 2.8% cost-of-living adjustment (COLA) beginning in January 2026, federal officials announced Friday. The increase translates to an average monthly boost of more than $56 for retirees, reflecting a continued—though slowing—response to inflationary pressures.

An additional 7.5 million recipients of Supplemental Security Income (SSI) will begin receiving increased payments starting December 31, 2025.

The announcement, originally scheduled for last week, was delayed due to the federal government shutdown.

The COLA is funded through payroll taxes collected from workers and employers. In 2026, the maximum taxable earnings threshold will rise to $184,500, up from $176,100 in 2025.

This adjustment follows a 2.5% increase in 2025 and a 3.2% bump in 2024. In 2023, beneficiaries received a historic 8.7% increase—the largest in four decades—driven by record inflation.

Social Security Administration Commissioner Frank Bisignano emphasized the importance of the annual adjustment, stating, “It’s one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security.”

However, Emerson Sprick, director of retirement and labor policy at the Bipartisan Policy Center, cautioned that COLA increases alone “can’t solve all the financial challenges households face or all the shortcomings of the program.”

The 2026 increase, while modest compared to recent years, signals a cooling inflation environment and a return to more typical benefit growth. For many in Delavan and across the country, it remains a vital lifeline in retirement planning.