The annual inflation adjustment for Social Security benefits was released on Friday and beneficiaries are set to see larger benefits in 2026.

Social Security’s annual cost-of-living adjustment (COLA) will be 2.8% next year, following the announcement by the Social Security Administration. On average, Social Security retirement benefits will increase by about $56 per month starting in January.

The annual COLA has averaged about 3.1% over the last decade, and was 2.5% in 2025. Inflation trending higher this year caused the COLA to be larger.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” said SSA Commissioner Frank Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”

The COLA was initially expected to be released on Oct. 15. However, the Bureau of Labor Statistics was impacted by the government shutdown, which delayed the release of September CPI inflation data that’s used to compute Social Security’s COLA.

The BLS recalled some of its furloughed workers to complete the September CPI data, which was also released on Friday, to allow the COLA announcement to proceed.

This is a developing story. Please check back for updates.