The Social Security Administration has announced a 2.8% cost-of-living adjustment (COLA) for 2026, increasing SSDI and SSI benefits starting in January. This annual adjustment helps beneficiaries keep up with inflation and rising living costs. Henson Fuerst explains what the new COLA means for disability recipients and applicants in North Carolina.
Each year, the Social Security Administration (SSA) announces a cost-of-living adjustment (COLA) to help Social Security and Supplemental Security Income (SSI) beneficiaries keep up with inflation. The COLA is based on changes in the Consumer Price Index (CPI-W). It ensures that monthly benefit payments maintain their purchasing power as the cost of everyday goods and services increases.
For 2026, the SSA has announced a 2.8% increase in benefits. This adjustment will take effect on December 31, 2025, which will be reflected in recipients’ January 2026 payments.
If you receive SSDI or SSI benefits, your monthly payment will automatically increase starting in January 2026. On average, Social Security disability beneficiaries will see their monthly benefit rise from $1,586 to $1,630. You can check your updated benefit amount through your My Social Security account online.
For individuals applying for disability benefits, the COLA also affects the maximum monthly benefit amounts and substantial gainful activity (SGA) limits, which may change annually in response to the adjustment. In 2026, the SGA limit will rise from $1,620 to $1,690 per month for non-blind individuals, while the Trial Work Period (TWP) threshold will increase from $1,160 to $1,210 per month.
In addition, the SSI Federal Payment Standard will go up to $994 per month for individuals and $1,491 per month for couples. The SSI resource limits, however, are set by law and will remain the same.
For millions of Americans who rely on Social Security Disability Insurance (SSDI), SSI, or retirement benefits, even small annual increases can make a big difference. The COLA helps offset rising costs for essentials like:
Without the COLA, fixed-income beneficiaries would see their purchasing power decrease each year as inflation rises.
The adjustment applies automatically to:
The SSA bases the COLA on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), measured by the U.S. Bureau of Labor Statistics. If the CPI-W shows an increase from the previous year’s third-quarter average, benefits rise by that percentage.
The 2026 cost-of-living adjustment (COLA) is set at 2.8%, the same as the 2.8% increase in 2025. While this year’s COLA reflects continued inflationary pressures, it’s far below the unusually high increases seen in 2022 and 2023, when COLAs reached 8.7% and 3.2%, respectively, following record inflation levels.
Looking back over the past decade, the 2025 adjustment is in line with long-term averages. From 2015 to 2020, annual COLAs often hovered between 0% and 2%, with several years seeing minimal increases. In contrast, the sharp upticks in 2021 and 2022—5.9% and 8.7%—were the largest in decades, driven by soaring consumer prices.
Overall, the 2026 COLA represents a return to more typical levels, offering beneficiaries a moderate boost that helps preserve purchasing power without the volatility seen in recent years.
Here’s a look at the COLA history:
At Henson Fuerst, our North Carolina disability attorneys are dedicated to helping individuals obtain and maintain the benefits they deserve. Whether you’re applying for Social Security disability benefits for the first time or appealing a denial, our experienced team is here to guide you through every step of the process.
Contact us today by submitting a form online or calling our office at (919) 781-1107 for a free case evaluation.