Retirees set to get 2.8% increase in Social Security benefits

American retirees will get $56 more in their wallets each month as Social Security checks adjust to keep up with rising prices.

Social Security’s annual cost-of-living adjustment, which is linked to a key measure of inflation, will be 2.8%. for 2026. This will represent an additional $56 per month for nearly 71 million beneficiaries starting in January, according to the Social Security Administration, with Supplemental Security Income recipients receiving their enhanced checks starting in late December.

“Social Security is a promise kept, and the annual cost-of-living adjustment is one of the ways we work to ensure benefits reflect today’s economic realities and continue to provide a foundation of security,” Frank Bisignano, commissioner of the Social Security Administration, said in a statement. release.

The adjustment is based on consumer price index data from the third quarter. Inflation continued to accelerate in September, reaching 3%. This corresponds to the January rate.

The cost of living adjustment jumped to 8.7% in 2022 for 2023, while inflation was much higher than it was previously.

The adjustment — and the data it is based on — comes as other federal functions and data remain on hold. The Bureau of Labor Statistics did not release its September employment report earlier this month due to the ongoing government shutdown, and it has not yet been released. Initially, inflation and Social Security adjustment data were scheduled to be released on October 15, but were delayed by the shutdown; the Bureau of Labor Statistics staff members reportedly recalled prepare the inflation report.

“No further broadcasts will be rescheduled or produced until regular government services resume,” the Bureau of Labor Statistics said in a statement. Statement of October 10. “This release allows the Social Security Administration to meet legal deadlines necessary to ensure accurate and timely payment of benefits.”

While older Americans can take solace in knowing their payments must be made on time — and with necessary increases — other social safety net programs are failing during the shutdown, which could have ripple effects.

Some states have warned that they will have to pause distribution of Supplemental Nutrition Assistance Program benefits in November, meaning many low-income Americans could struggle to afford groceries on smaller, if any, monthly checks. Beginning in fiscal 2022, approximately 7.2 million Americans People ages 60 and older participated in SNAP, and as of fiscal year 2023, this group made up about one-fifth of SNAP participants.

All of this could exacerbate some of the financial struggles older Americans already face. About 44% of Americans 65 and older have incomes of $30,000 or less in 2024, according to a Business Insider analysis of Census data. This could mean that even the 2.8% increase won’t be enough for some: AARP survey A survey of 1,001 U.S. adults aged 50 and older conducted between September 18 and 23 found that 77% disagreed with the idea that a COLA of around 3% would be enough to keep up with rising prices.

Are you retired and impatiently awaiting the increase in Social Security? Have the high prices affected you? Contact these journalists at jkaplan@businessinsider.com And mhoff@businessinsider.com.