What the 2026 COLA Means for Disability Benefit Recipients

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1. Understanding the 2026 Cost of Living Adjustment for SSD and SSI Recipients

REVIEWED BY

C. William Kenny

November 11, 2025

Board certified by National Board of Trial Advocacy

Understanding the 2026 Cost of Living Adjustment for SSD and SSI Recipients

Every year, the Social Security Administration (SSA) adjusts benefit payments to keep up with inflation. This increase, known as the cost-of-living adjustment or COLA, helps Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) recipients maintain their purchasing power as living costs rise.

For 2026, the SSA has announced a 2.8 percent COLA. This change is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation between the third quarter of 2024 and the third quarter of 2025.

What the 2.8 Percent Increase Means

Beginning in January 2026, SSDI payments will increase by about 2.8 percent. The average monthly benefit for retired workers will rise by roughly $56.  This will raise the maximum federal benefit for an individual on SSI to $994 per month. SSI recipients will see their first increased payment on December 31, 2025, which counts as their January 2026 benefit.

For individuals and families who rely on disability benefits, this increase offers some relief, but it may not fully keep up with inflation. Rising costs for essentials such as food, rent and medical care can still put pressure on household budgets, even with the COLA boost.

Important Dates and Steps for Recipients

• SSDI recipients will see their increased payments starting in January 2026.
• SSI recipients will receive their first adjusted payment on December 31, 2025.
• Beneficiaries can check their new payment amount through their my Social Security account in early December 2025.

What to Keep in Mind

The COLA affects more than just monthly payments. Each year, SSA also updates other key figures, such as the Substantial Gainful Activity (SGA) threshold. For 2026, the SGA amount for non-blind workers will increase to $1,690.00 per month. This means individuals receiving disability benefits can earn slightly more from work before their benefits are affected.

At the same time, any increase in benefits could impact income-based programs such as Medicaid or housing assistance. It is wise for clients to review these programs to ensure continued eligibility.

The 2026 COLA increase of 2.8 percent is a helpful change for many SSDI and SSI recipients, but it is also a good reminder that the cost of living is rising. Beneficiaries should view the COLA not only as extra income but also as a reminder to be mindful of spending and to review their budgets. Planning ahead can help make sure your benefits continue to cover your essential expenses throughout the year.