The Social Security Administration (SSA) remains an important source of fiscal security for millions of Americans through its withdrawal, disability, survivor, and Supplemental Security Income (SSI) programs. Heirs in 2026 will see some changes related to the periodic cost- of- living adaptation (COLA), Medicare Part B decorations, and Veterans Affairs (VA) disability pay.
The 2026 social security cost-of-living adjustment (COLA)
Every time, the SSA makes a Cost- of- Living Adjustment to benefits to help heirs save their purchasing power when there's affectation. In 2026, the SSA announced that the COLA would be increased by 2.8, which will be effective in January of 2026. The increase will affect roughly 71 million Social Security heirs consisting of retirees, survivors, and impaired workers and nearly 7.5 million grown-ups entering SSI payments starting December 31, 2025.
The average yearly Social Security withdrawal benefit will rise about $56, lifting the average payment from $2,015 in 2025 to $2,071 in 2026. The 2.8 increase is slightly advanced than the 2.5 cost- of- living adaptation( COLA) in 2025, but is still lower than the approximate 3.1 average COLA increase over the last decade. The increase in Social Security benefit payment is grounded on the chance increase computation in the Consumer Price indicator for Civic pay envelope Earners and pastoral Workers from the previous time third quarter through the current time third quarter.
Medicare part B premiums for 2026
Medicare Part B Premiums for 2026 are set to increase substantially as the impacts of healthcare inflation and the rising costs of administering the program continue. The Centers for Medicare & Medicaid Services (CMS) forecasts that the "standard" monthly premium for Medicare Part B in 2026 will be approximately $206.20, up nearly $21 from the premium of $185 set in 2025. This would be one of the largest increases in years over the last year financing costs to the program are rising with increasing demands for outpatient services and preventive care.
Medicare Part B encompasses pivotal medical services such as outpatient care, visits to physicians, durable medical equipment, and preventive services. Almost all Medicare beneficiaries enrolled in Part B have their premiums deducted from their benefits automatically; thus, the increase in the Part B premium would affect the amount deposited into the individual beneficiary’s net monthly Social Security checks - Februarying beginning in 2026. Nonetheless, the Social Security Administration has also announced a COLA increase of 2.8% for 2026, with this increase compensating for the impact of the new Medicare premiums, albeit about 40% of the COLA increase may be used to cover the rising premium on Medicare.
Supplemental security income (SSI) COLA increase for 2026
Supplemental Security Income (SSI) is a critical civil program managed by the Social Security Administration( SSA) and is established to give income support to low-income aged, eyeless, or impaired individuals. It'll be the case that SSI heirs will admit a 2.8 COLA increase effective 12/31/2025, harmonious with the SSA's statutory obligation to assure the purchasing power of its heirs in light of uninterrupted affectation and cost of living increases. Anyhow, this increase will be on December 31, 2025, which provides an advanced yearly income beginning the end of 2025 for some of the most financially indigent people in America.
In 2026, the cost-of-living adaptation( COLA) for Supplemental Security Income (SSI) is 2.8, harmonious with the advertisement regarding the adaptation for Social Security benefits, and is a small increase (compared to the 2.5 COLA in 2025). This adaptation is determined based on changes in the Consumer Price indicator for Civic pay envelope Earners and pastoral Workers (CPI- W) from the former time's third quarter to the current time's third quarter. The purpose of the adaptation is to save the real purchasing power of benefits with respect to affectation's erosive goods on the fiscal sustainability of the SSI population.
With the increase, SSI recipients will receive a slightly higher monthly benefit than they would have received in 2025, which will assist in offsetting increasing costs for expenses such as housing, food, and healthcare and essential goods. SSI populations are limited-income individuals and families who may have little to no assets. Consequently, this COLA adjustment is a foundational component to enable and support beneficiaries to afford basic costs of living. SSI serves nearly 7.5 million people, so the COLA adjustments represent a significant fiscal increase to the budgets for many low-income individuals and senior citizens or disabled beneficiaries.
VA disability pay chart and rates for 2026
The Department of Veterans Affairs (VA) increases the disability compensation rates every year to account for changes in the cost of living so that disabled veterans can maintain the real value of their benefits when faced with inflation. The new disability pay rates for 2026 reflect a 2.8% increase, mirroring the Cost-of-Living Adjustment (COLA) set by the Social Security Administration (SSA). The new pay rates will take effect on December 1, 2025, and will remain effective until December 2026. The VA disability compensation program pays tax-free amounts to veterans who suffer from a service-connected disability each month. The total payment amount is based on the severity of the disability and is expressed in percentages ranging from 0 to 100%.
The VA has pay charts to show the current VA rates, which represent the monthly amounts of compensation for different disability ratings or dependent status. For a veteran with a 10% disability rating, the amount they will receive is $180.42 a month, and for a 20% rating, they will receive $356.66. Veterans who are rated 10% or 20% disabled do not receive any additional compensation for dependents.
As disability ratings rise, so do the amounts that could be paid, and veterans with a disability rating of 30% or higher are entitled to an additional monthly award based on a dependent spouse, children, or parents. For example, a veteran rated at 30% and has a spouse and three children under the age of 18 will receive a total monthly amount of $730.32. The total monthly amount comprises a base amount and then adds incremental amounts per dependent.
Social security benefits overview and eligibility
Social security benefits are determined based on an individual's average indexed monthly earnings history, which is the average amount of money the worker had earned in indexed dollars for their earnings history. The eligibility categories for social security benefits include retired worker (retirement benefits beginning around that worker's age of 62 for early retirement, or full retirement, calculated based on the year the person was born), disabled individuals meeting the SSA's (social security administration) definition of disabled, or a survivor of a deceased worker. Additionally, beneficiaries receiving low income may also qualify for SSI.
The full retirement age has changed due to varying potential start dates based on birth year. Also, if an individual is eligible for benefits and reaches retirement age but is a still working, some earnings will temporarily reduce their benefits until annual earned income reaches a specified limit, which is adjusted periodically based on the cost of living and other policy criteria.
Historical context and inflation impact
In the past ten years, the COLA has changed at an average of about 3.1%, indicating sporadic but generally moderate inflation. The 2.8% COLA increase for 2026 follows the high inflation of 2021-2023, which resulted in higher-than-normal increases to the COLA in benefit years 2022 and 2023, and then a mild moderation in benefits for 2024 and 2025. The decrease in benefits for 2026 indicates that inflationary expectations are closer to stabilization.
Planning for social security in 2026 and beyond
The COLA increase of 2.8% provides a valuable additional increase to monthly benefits; however, retirees will continue to have concerns regarding ongoing inflation for any increase in the cost of living, and continuing rising healthcare and housing costs. Experts suggest that retirement planning should be more than just relying on social security, including additional savings, consideration of healthcare-related costs, and the exploration of any new rules regarding social security claimants, such as income limits for those who continue to work while still receiving benefits prior to reaching their full retirement age.