COLA (Cost-of-Living Adjustment)

A cost-of-living adjustment (COLA) is the annual increase applied to Social Security and SSI benefits to keep pace with inflation. The adjustment is set by law using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), comparing third-quarter figures year over year, and it takes effect with December benefits paid in January. For 2026, the COLA is 2.8 percent.

COLA applies automatically; you do not need to request it. The same annual announcement also updates related figures, including the substantial gainful activity level, the trial work period threshold, the SSI federal benefit rate, and the earnings needed for a work credit, all of which are adjusted annually. In years with no measurable inflation, the COLA can be zero.