The Social Security Administration (SSA) has announced its annual Cost-of-Living Adjustments (COLA) and key threshold changes for 2026, reflecting modest increases across multiple benefit programs. These updates are designed to ensure that Social Security and Supplemental Security Income (SSI) payments keep pace with inflation and that work-related eligibility standards remain aligned with current economic conditions.
For 2026, the COLA will rise by 2.8%, up from the 2.5% adjustment applied in 2025. This increase will take effect in January 2026 for Social Security beneficiaries, while SSI recipients will see the higher rate reflected in payments issued on December 31, 2025. “Nearly 71 million Social Security beneficiaries will see a 2.8 percent COLA beginning in January 2026. Increased payments to nearly 7.5 million people receiving SSI will begin on December 31, 2025.” (SSA, October 24, 2025) According to SSA projections, the average monthly benefit for all retired workers will increase from approximately $2,015 to $2,071.
The amount needed to earn a “quarter of coverage,” which determines a worker’s eligibility for Social Security benefits, will also rise in 2026. The required earnings per quarter will increase from $1,810 in 2025 to $1,890 in 2026. Because a worker can earn up to four quarters per year, full coverage for 2026 will require a total of $7,560 in earnings. These work credits are essential for establishing eligibility for both retirement and disability benefits, so employees should be aware of these updated benchmarks when tracking their progress toward qualification.
For individuals receiving disability benefits, the Substantial Gainful Activity (SGA) thresholds, used to determine whether a person’s work activity is considered significant enough to disqualify them from benefits, will also rise. In 2025, the SGA limit was $1,620 per month for non-blind individuals and $2,700 per month for those who are blind. Beginning in 2026, these amounts will increase to $1,690 and $2,830 respectively. These changes provide a small but meaningful adjustment, ensuring that beneficiaries are not penalized for modest increases in earnings due to inflation or cost-of-living changes.
Supplemental Security Income (SSI) recipients will also benefit from higher payment rates in 2026. The federal benefit rate for individuals will increase from $967 to $994 per month, while the maximum couple rate will rise from $1,450 to $1,491. The per-child exclusion, which allows a portion of parental income to be disregarded when determining a child’s SSI eligibility, will increase to $497. These adjustments help ensure that SSI benefits continue to support individuals and families with limited income and resources as living costs increase.
Updated information about Medicare premiums and coverage changes for 2026 will be posted on the official Medicare site. If you receive both Social Security and Medicare, your COLA notice will include any adjustments to your Medicare premiums. These updates will appear in your mySocialSecurity Message Center in late November
The Trial Work Period (TWP), which allows Social Security Disability Insurance (SSDI) recipients to test their ability to work for at least nine months without losing benefits, will also see an increase. In 2025, the monthly TWP threshold was $1,160, meaning any month in which a beneficiary earned more than that amount counted as a “trial work month.” For 2026, the TWP threshold will rise to $1,210 per month. This change provides a slightly larger earnings cushion for individuals seeking to reenter the workforce, allowing them to explore employment opportunities with less immediate financial risk.
Taken together, the increases in SGA and TWP thresholds will give disability recipients slightly more flexibility to earn income without jeopardizing their benefits, while the higher SSI and retirement benefit rates will help offset inflationary pressures felt by millions of Americans. “Similar to last year, Social Security beneficiaries will receive a simplified, one-page COLA notice, which uses plain and personalized language, and provides exact dates and dollar amounts of an individual’s new benefit amount and any deductions.” (SSA, October 24, 2025)
At Kerr Robichaux and Carroll Disability Law, we closely monitor these annual adjustments to help clients understand how changes to Social Security rules may affect their eligibility, benefit amounts, or return-to-work options. If you have questions about how the 2026 Social Security COLA updates could impact your disability or SSI benefits, our experienced team is here to help you navigate your options and protect your rights.
Sources:
Administration, S. S. (2025, October 24). Social Security announces 2.8 percent benefit increase for 2026. https://www.ssa.gov/news/en/press/releases/2025-10-24.html