The Social Security Administration has announced a 2.8% Cost-of-Living Adjustment (COLA) for 2026 — slightly higher than last year’s 2.5% increase. This change will affect nearly 75 million Americans, including retirees and those receiving Supplemental Security Income (SSI). Starting January 2026, the average Social Security benefit will rise by about $56 per month, bringing the average monthly payment to approximately $2,071. Married couples will see their combined benefit increase by an average of $88 a month.​ The COLA is designed to help retirees keep pace with inflation. While it’s a welcome increase for many, it’s important to note that the rise in living costs and Medicare premiums could offset much of the gain. AARP research shows that more than three-quarters of older Americans still feel these modest adjustments don’t fully cover real-world inflation, which continues to impact essential goods and healthcare costs.​ In addition to benefit increases, some key thresholds are also changing in 2026: - The maximum taxable earnings limit will rise from $176,100 to $184,500, meaning higher-income earners will contribute slightly more in payroll tax. - The maximum monthly benefit for new retirees claiming at full retirement age will climb to around $3,827, up from $3,822.​ For financial advisors, this update serves as both a planning checkpoint and a client communication opportunity. Now is the time to review Social Security strategies: - Reassess claiming decisions based on updated benefits. - Coordinate tax-efficient income strategies around the new taxable maximum. - Evaluate how inflation-adjusted benefits interact with Roth conversions, pensions, and portfolio withdrawals. Social Security remains a foundational element of retirement income — but as COLA adjustments remind us each year, relying on it alone may not be enough to keep up with inflation. A diversified, intentional income plan that integrates Social Security, tax planning, and investments remains the best path to long-term financial independence.