Social Security’s 2026 COLA: Retirees in 10 States Will Get the Largest Raises Next Year

The Social Security cost-of-living adjustment — or COLA — announcement is one of the biggest days of the year for retirees. And this time, all eyes are on October 15, 2025, when the Social Security Administration (SSA) is expected to release the official 2026 COLA figures — assuming, of course, that Washington’s partial government shutdown wraps up in time.

According to the Senior Citizens League, a nonpartisan advocacy group that has accurately forecasted past adjustments, Social Security benefits are expected to rise by about 2.7% in 2026. That’s a modest bump compared to the record-high increases of the pandemic years, but still a meaningful one — especially for seniors trying to keep up with rising housing, food, and healthcare costs.

How the COLA Is Calculated

Every year, the SSA bases the cost-of-living adjustment on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) during the third quarter — July through September.

If prices rise, so do Social Security checks. For instance:

• The CPI-W rose 2.5% during Q3 2024, which triggered a 2.5% increase in 2025 Social Security benefits.
• Using that same formula, this year’s CPI-W data points to roughly a 2.7% COLA for 2026.

Here’s how it works in practice:
If a retiree currently receives $1,750 per month, a 2.7% increase would add roughly $47.25, bringing their new benefit to $1,797.25 (rounded down to the nearest dime as required by SSA rules).

That percentage applies uniformly to all recipients — but the dollar amount varies based on each person’s existing benefit.

Why Some States See Bigger COLAs (in Dollars)

Even though the COLA percentage is the same nationwide, retirees in some states will see larger increases in actual dollars simply because they receive higher average monthly benefits to begin with.

Higher state averages often reflect regional wage levels, longer work histories, or industries with stronger earnings before retirement. For example, retirees from states with higher lifetime earnings — such as those with large tech or finance sectors — generally receive more from Social Security.

The 10 States With the Highest Median Social Security Benefits (as of 2025)

Based on the Social Security Administration’s 2025 Annual Statistical Supplement, here are the ten states where retirees receive the largest median monthly benefits — and, as a result, where 2026’s COLA will pack the biggest punch.

Rank	State	Median Monthly Benefit (2024)	Estimated 2026 COLA Increase (2.7%)	New Median (2026 est.)
1	Connecticut	$1,925	+$52.00	$1,977
2	New Jersey	$1,910	+$51.57	$1,962
3	Massachusetts	$1,895	+$51.17	$1,946
4	Maryland	$1,865	+$50.36	$1,915
5	Washington	$1,845	+$49.82	$1,895
6	California	$1,825	+$49.27	$1,874
7	Virginia	$1,810	+$48.87	$1,859
8	Colorado	$1,790	+$48.33	$1,838
9	New York	$1,775	+$47.93	$1,823
10	Minnesota	$1,760	+$47.52	$1,808

(Source: Social Security Administration, Annual Statistical Supplement 2025)

These figures are approximations based on the projected 2.7% COLA and may shift slightly once official data is confirmed by the SSA.

What a 2.7% COLA Means for Retirees

While a 2.7% increase is smaller than the 8.7% bump in 2023 or the 3.2% raise in 2024, it still reflects steady inflation — and it helps offset rising costs for essentials.

However, not all seniors will feel the full benefit. Many retirees have Medicare premiums automatically deducted from their Social Security checks. If Medicare Part B premiums rise significantly in 2026 — as analysts expect — the net take-home increase for many could be lower than the full COLA.

In short, the COLA helps keep retirees’ purchasing power roughly stable, but it’s not necessarily a windfall.

How to Check Your Updated 2026 Benefit

When the SSA makes the official COLA announcement, beneficiaries can:

• Log in to their My Social Security account at ssa.gov/myaccount.
• Review the “Message Center” for their new benefit amount, typically posted in December.
• Expect the first 2026 COLA-adjusted payment in January 2026.

For those receiving paper statements, the updated benefit amount will appear in mailed notices by late December 2025.

Economic Context: COLA and Inflation Trends

The Consumer Price Index (CPI-W) has shown persistent though slowing inflation throughout 2025. The biggest contributors have been:

• Shelter costs, which rose about 4% year over year.
• Medical care services, up roughly 3.6%.
• Energy and food prices, which fluctuated but remain higher than pre-pandemic levels.

That backdrop explains why the COLA is lower than in previous years — inflation is easing, but still present.

According to the U.S. Bureau of Labor Statistics (BLS), real wage growth has been modest in 2025, and household budgets remain stretched for lower-income seniors. For many, Social Security still represents 90% or more of total income, making even small adjustments significant.

FAQs: