WASHINGTON (AP) — The Social Security Administration's annual cost-of-living adjustment will go up by 2.8% in 2026, translating to an average increase of more than $56 for retirees every month, agency officials said Friday.
The benefits increase for nearly 71 million Social Security recipients will go into effect beginning in January. And increased payments to nearly 7.5 million people receiving Supplemental Security Income will begin on Dec. 31.
Friday’s announcement was meant to be made last week but was delayed because of the federal government shutdown.
The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary, which is slated to increase to $184,500 in 2026, from $176,100 in 2025.
Recipients received a 2.5% cost-of-living boost in 2025 and a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.
The smaller increase for 2026 reflects moderating inflation. The agency will notify recipients of their new benefit amount by mail in early December.
Some seniors say the cost-of-living adjustment won't help much in their ability to pay for their daily expenses. Linda Deas, an 80-year-old Florence, South Carolina, resident said "it does not match the affordability crisis we are having right now.”
Deas, a retired information systems network operations specialist, moved to South Carolina from New York in 2022 to be closer to family. She says her monthly rent has increased by $400 in the past two years.
She listed other items that have become more expensive for her in the past two years, including auto insurance and food. "If you have been into the supermarkets lately you will notice how prices are going up, not down,” she said.
Deas is not alone in feeling that costs are getting out of control. Polling from the AARP shows that older Americans are increasingly struggling to keep up in today’s economy. The poll states that only 22% of Americans over age 50 agree that a COLA of right around 3% for Social Security recipients is enough to keep up with rising prices, while 77% disagree. That sentiment is consistent across political party affiliations, according to the AARP.
In Deas' case, the MIT Living Wage Calculator estimates that an adult living alone in Florence, South Carolina, would spend per year $10,184 for housing, $3,053 for medical expenses and $3,839 for food.
AARP CEO Myechia Minter-Jordan said the COLA is “a lifeline of independence and dignity, for tens of millions of older Americans,” but even with the annual inflation-gauged boost in income, “older adults still face challenges covering basic expenses.”
Social Security Administration Commissioner Frank Bisignano said in a statement Friday that 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.”
Emerson Sprick, the Bipartisan Policy Center’s director of retirement and labor policy, said in a statement that cost-of-living increases “can’t solve all the financial challenges households face or all the shortcomings of the program.”
The latest COLA announcement comes as the Social Security Administration has been navigating almost a year of turmoil, including the termination of thousands of workers as part of the Trump administration's efforts to shrink the size of the federal workforce. Trump administration officials have also made statements they later walked back that raised concerns about the future of the program.
Treasury Secretary Scott Bessent said in July that the Republican administration was committed to protecting Social Security hours after he said in an interview that a new children’s savings program President Donald Trump signed into law “is a back door for privatizing Social Security.”
And in September, Bisignano had to walk back comments that the agency is considering raising the retirement age to shore up Social Security. “Raising the retirement age is not under consideration at this time by the Administration,” Bisignano said at the time in an e-mailed statement to The Associated Press.
“I think everything’s being considered, will be considered,” Bisignano said in the statement when asked whether raising the retirement age was a possibility to maintain the old age program’s solvency.
In addition, the Social Security Administration faces a looming bankruptcy date if it is not addressed by Congress. The June 2025 Social Security and Medicare trustees’ report states that Social Security’s trust funds, which cover old age and disability recipients, will be unable to pay full benefits beginning in 2034. Then, Social Security would only be able to pay 81% of benefits.
Social Security benefits were last reformed roughly 40 years ago, when the federal government raised the eligibility age for the program from 65 to 67.
While a permanent solution for shoring up the benefits program has not been passed into law, both the Trump and Biden administrations have recently signed into law new benefits for retirees, which are expected to boost their finances.
The Trump administration, as part of Republicans’ tax and spending bill, gave tax relief to many seniors through a temporary tax deduction for seniors aged 65 and over, which applies to all income — not just Social Security. However, those who won’t be able to claim the deduction include the lowest-income seniors who already don’t pay taxes on Social Security, those who choose to claim their benefits before they reach age 65 and those above a defined income threshold.
Additionally, former President Joe Biden in 2024 repealed two federal policies — the Windfall Elimination Provision and the Government Pension Offset — that previously limited Social Security payouts for roughly 2.8 million people, including largely former public workers.
These measures have accelerated the insolvency of the old-age benefits program.
Sprick at the Bipartisan Policy Center said “there have been longstanding questions about whether benefits are adequate for low-income seniors, which should inspire urgency among policymakers to work toward broader reforms instead of ignoring Social Security’s long-term solvency."
Follow the AP's coverage of the U.S. Social Security Administration at https://apnews.com/hub/us-social-security-administration.
Treasury Secretary Scott Bessent speaks with reporters at the White House, Wednesday, Oct. 22, 2025, in Washington. (AP Photo/Alex Brandon)
FILE - The Social Security Administration's main campus is seen in Woodlawn, Md., Jan. 11, 2013. (AP Photo/Patrick Semansky, File)
DUBAI, United Arab Emirates (AP) — Israel stepped up airstrikes on Iranian missile launchers and factories Tuesday, and Iran retaliated against Israel and across the Gulf region, disrupting energy supplies and travel. As explosions rang out in Tehran and in Lebanon — where Israel said it struck Hezbollah militants — the American embassy in Saudi Arabia came under drone attack.
Four days into a war that President Donald Trump suggested would last several weeks but perhaps longer, hundreds of people have been killed, the vast majority in Iran. Information coming out of Iran has been limited because of poor communications, round-the-clock airstrikes and tight restrictions on journalists.
Iran has fired dozens of ballistic missiles at Israel, setting off air raid sirens across the country. The pace of the attacks appeared to be slowing and Israel has intercepted most of the incoming fire, but some missiles have landed, killing 11 people.
The spiraling nature of the war raised questions about when and how it would end. Trump seemed to leave open the possibility for more extensive U.S. military involvement, telling the New York Post on Monday that he was not ruling out the possibility of boots on the ground.
The administration has given various objectives. While the initial U.S.-Israeli strikes killed Iranian Supreme Leader Ayatollah Ali Khamenei and Trump urged Iranians to overthrow their government, senior administration officials have since said regime change was not the goal.
Trump said Monday the military campaign’s four objectives were to destroy Iran’s missile capabilities, wipe out its navy, prevent it from obtaining a nuclear weapon and ensure that it cannot continue to support allied armed groups.
Trump said Tuesday that “someone from within” the Iranian regime might be the best choice to take power once the U.S.-Israel campaign is finished.
Speaking from the Oval Office Tuesday, Trump said Reza Pahlavi, the exiled son of Iran’s toppled Shah, is not someone that his administration has considered in depth to take over.
As far as possible leaders inside Iran, “the people we had in mind are dead,” Trump said. “I guess the worst case would be do this, and then somebody takes over who’s as bad as the previous person, right? That could happen. We don’t want that to happen.”
Iran’s leaders are scrambling to replace Khamenei, who ruled the country for 37 years. It’s only the second time since the 1979 Islamic Revolution that a new supreme leader is being chosen. Potential candidates range from hard-liners committed to confrontation with the West to reformists who seek diplomatic engagement.
The supreme leader has the final say on all major decisions, including war, peace and the country’s disputed nuclear program.
Across Iran’s capital, aircraft were heard overhead and explosions rang out throughout the night into Tuesday.
The Israeli military said it conducted a wave of airstrikes on sites that produce and store ballistic missiles, in Tehran and Isfahan. Strikes caused two explosions at a broadcasting facility in Tehran, Iranian state TV said, adding that no one was injured.
The United Nations’ nuclear watchdog said Iran’s Natanz nuclear enrichment site had sustained “some recent damage,” though there was “no radiological consequence expected.” The U.S. hit Natanz during the 12-day war in June, when Israeli and American strikes greatly weakened Iran's nuclear program.
Without offering evidence, Israeli Prime Minister Benjamin Netanyahu claimed Iran was rebuilding “new sites, new places” underground for making atomic bombs. Iran has said it has not enriched uranium since June, though it has maintained its right to and says its nuclear program is peaceful.
New rounds of U.S. and Israeli airstrikes rattled Tehran and several other Iranian cities.
“Since midnight, I and my wife are hearing sound of explosions,” said Ali Amoli, an engineer living in north Tehran. “Sometimes from the west side of the city and sometimes from other directions.” Streets and gas stations appeared quieter than in recent days.
Local media published images of a damaged commercial plane at Bushehr airport that broke apart following an airstrike on Tuesday.
A north Tehran resident who spoke on condition of anonymity for fear of retaliation described growing fears in the capital as it comes under heavy bombardment. The resident said most stores in the normally bustling area of Tajrish were closed and that ATMs were mostly “out of cash.” Bakeries and supermarkets were open, though, the resident said.
An attack from two drones on the U.S. Embassy in Riyadh caused a “limited fire,” according to Saudi Arabia’s Defense Ministry, and the embassy urged Americans to avoid the compound. It followed an attack on the U.S. Embassy in Kuwait. U.S. Embassies in Saudi Arabia, Kuwait and Lebanon said they were closed to the public.
The U.S. State Department ordered the evacuation of non-emergency personnel and family in Kuwait, Bahrain, Iraq, Qatar, Jordan and the United Arab Emirates. In addition, the U.S. has urged citizens to leave more than a dozen Middle Eastern countries, though with much of the airspace closed many remained stranded.
The State Department said Tuesday it’s preparing military and charter flights for Americans who want to leave the Middle East. Several other countries arranged evacuation flights for their citizens.
The U.S.-Israeli strikes have killed at least 787 people, according to the Iranian Red Crescent Society. The Iranian-supported militant group Hezbollah has also attacked Israel, whose retaliatory strikes killed 52 people in Lebanon.
The U.S. military has confirmed six deaths of American service members. In addition, three people were killed in the United Arab Emirates, and one each in Kuwait and Bahrain.
Iran has hit many countries deemed safe havens in the Mideast in retaliation for the U.S.-Israeli strikes. Recent targets included two Amazon data centers in the United Arab Emirates and one in Bahrain. The centers in the UAE were hit, while a drone struck near the one Bahrain, causing damage, the company said.
Iran has also struck energy facilities in Qatar and Saudi Arabia, and attacked several ships in the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a fifth of all oil traded passes, sending global oil and natural gas prices soaring.
“The Strait of Hormuz is closed,” declared Iranian Brig. Gen. Ebrahim Jabbari, an adviser to the paramilitary Revolutionary Guard, vowing that any ships that passed through it would be set on fire.
Oil and natural gas prices climbed, and stock prices fell sharply.
The conflict has spread to Lebanon, where Hezbollah fired missiles at Israel on Monday, prompting Israel to retaliate.
On Tuesday, the Israeli military hit Beirut with more airstrikes and said it had moved additional troops into southern Lebanon and taken new positions on several strategic points close to the border.
The U.N. peacekeeping force in Lebanon later said its peacekeepers saw Israeli troops going into and then out of Lebanon. But Israel’s army said its troops are still operating in Lebanon.
This story has been updated to correct that communications in Iran are poor, but that the internet isn't shut down. It also clarifies that more than one drone hit the U.S. Embassy in Saudi Arabia. Some instances referred to just one drone.
Becatoros reported from Athens, Greece, and Magdy from Cairo. Seung Min Kim and Konstantin Toropin in Washington, David Rising in Bangkok, Melanie Lidman in Tel Aviv, Israel, Hallie Golden in Seattle, Giovanna Dell'Orto in Miami, and Suzan Fraser in Ankara, Turkey, contributed to this report.
A firefighter extinguishes fire at a building that was hit by an Israeli airstrike in Dahiyeh, a southern suburb of Beirut, Lebanon, Tuesday, March 3, 2026. (AP Photo/Hussein Malla)
A woman crosses almost deserted square with a billboard at rear showing a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed in the U.S.–Israeli military campaign, in Tehran, Iran, Tuesday, March 3, 2026. (AP Photo/Vahid Salemi)
Smoke rises from a destroyed building that was hit by an Israeli airstrike in Dahiyeh, a southern suburb of Beirut, Lebanon, Tuesday, March 3, 2026. (AP Photo/Hussein Malla)
An Iranian flag is placed among the ruins of a police station struck Monday during the U.S.–Israeli military campaign in Tehran, Iran, Tuesday, March 3, 2026. (AP Photo/Vahid Salemi)
Smoke rises from Israeli airstrikes in Dahiyeh, a southern suburb of Beirut, Lebanon, Tuesday, March 3, 2026. (AP Photo/Hussein Malla)
Jewish men covered in prayer shawls pray in an underground parking garage as a precaution against possible Iranian missile attacks, in Tel Aviv, Israel, Tuesday, March 3, 2026. (AP Photo/Oded Balilty)
A group of men inspects the ruins of a police station struck Monday amid the U.S.–Israeli military campaign in Tehran, Iran, Tuesday, March 3, 2026. (AP Photo/Vahid Salemi)
Smoke rises from Israeli airstrikes in Dahiyeh, a southern suburb of Beirut, Lebanon, Tuesday, March 3, 2026. (AP Photo/Hussein Malla)
Smoke rises from Israeli airstrikes in Dahiyeh, a southern suburb of Beirut, Lebanon, early Tuesday, March 3, 2026. (AP Photo/Bilal Hussein)
This image provided by U.S. Central Command shows a F-35C Lightning II preparing for launch on the flight deck of the USS Abraham Lincoln (CVN 72) in support of Operation Epic Fury on Monday, March 2, 2026. (U.S. Navy via AP)
Mourners take cover while air-raid sirens warn of incoming missiles launched by Iran toward Israel during the funeral of Sarah Elimelech and her daughter Ronit who were killed in an Iranian missile attack, in Beit Shemesh, Israel, Monday, March 2, 2026. (AP Photo/Ohad Zwigenberg)
A worker instals a billboard on an overpass containing a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed during the ongoing joint U.S.-Israeli military campaign, in Tehran, Iran, Monday, March 2, 2026. (AP Photo/Vahid Salemi)
Smoke engulfs a street after a strike in Tehran, Iran, Monday, March 2, 2026. (AP Photo/Mohsen Ganji)
