The Cost-of-Living Adjustment is the formal annual recalibration of every Social Security benefit. SSA computes it from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically the average for July, August, and September of the year before the increase takes effect.
For 2026, the COLA is 2.5 percent, applied to every Title II and SSI payment starting in January. Recent COLAs: 8.7% (2023), 3.2% (2024), 3.2% (2025), 2.5% (2026). Your gross benefit changes automatically, no action required.
COLA increases the gross benefit but does not necessarily change your net deposit by the same percentage. Medicare Part B premium hikes, IRMAA surcharges, and tax withholding can absorb part of the increase.