The Social Security Administration (SSA) has announced a 2.8 % cost-of-living adjustment (COLA) for 2026 benefits. This annual adjustment is designed to help Social Security recipients maintain their purchasing power as inflation fluctuates. See the 2026 Social Security COLA Facts release here.

Other important provisions released annually in the COLA Facts release are the maximum taxable earnings amounts, which increase to $184,500 in 2026 from $176,100 in 2025, and higher Retirement Earnings Test thresholds. The exempt amounts increase to $24,480 per year ($2,040 per month) up to the calendar year of full retirement age (FRA) and $65,160 per year ($5,430 per month) in the year of FRA.

While a 2.8% COLA isn’t massive, it’s still significant. More than anything, each year’s COLA announcement demonstrates what we already know: Social Security is unlike any other asset in a client’s retirement income portfolio. It's inflation adjusted with changes to the CPI, its longevity protected, and its tax advantaged in ways that no other income is. 

For advisors, these annual updates offer a perfect opportunity to communicate with clients and reinforce the value of the decisions you are helping them make.