Understanding the 2026 Cost of Living Adjustment
This week’s disability blog has a special guest contributor, HDSA’s Madeline Burbank, Disability Intern.
The Social Security Administration adjusts benefit payments every year to keep up with inflation, an update known as the cost-of-living adjustment (COLA).
In 2026, everyone receiving Social Security retirement, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) will see a 2.8% increase in their benefits. Individuals receiving SSI payments will see an average increase of $27, for a max benefit of $994 a month. Couples receiving SSI payments will see an average increase of $41, for a max benefit of $1491 a month. SSDI recipients will see an average increase of $44 per month.
| Average Monthly Benefit | ||
| Year | SSI | SSDI |
| 2024 | $943 | $1,537 |
| 2025 | $967 | $1,586 |
| 2026 | $994 | $1,630 |
The maximum monthly benefit for SSDI and retirement is increasing to $4,152 per month. For more information, check out the Social Security Fact Sheet.
The benefit increase will take place in January 2026, and the SSA will start mailing account notices in December. To check for a digital notice, visit www.ssa.gov/myaccount and log in or create an online account.
Work Credits
For those who are still working and accumulating benefits, note that for 2026 COLA means that $1,890 in taxable income is required to earn one work credit. This means you need to earn at least $7,560 annually to earn all four credits available in a year. Workers need 40 credits to be eligible for retirement benefits, and most people need 20 credits, earned in the last 10 years, to be eligible for SSDI.
Work Earning Thresholds
The Substantial Gainful Activity (SGA) threshold will be increased to $1,690 in 2026. This is the monthly earnings maximum to remain eligible for Social Security disability benefits for most people with disabilities (there is a separate SGA for blind recipients). This SGA increase gives more flexibility for those who have minimal income while receiving benefits. If you are working while receiving SSDI, coordinate with the Work Incentives Planning and Assistance program. Everyone deserves support navigating the rules and limits. No one wants to lose benefits unexpectedly.
The COLA increase can also be a helpful metric for anyone revisiting their financial plans for 2026. Make sure your budget categories for 2026 reflect the higher cost of living!
Contact Us
If you have questions, you can always Ask Allison and we’ll be happy to share resources and make referrals as needed!
