The Social Security Administration on Friday announced a 2.8 percent cost-of-living adjustment for 2026, affecting benefits for 75 million Americans receiving Old-Age, Survivors and Disability Insurance and Supplemental Security Income payments. The increase, effective January 2026 for most recipients, will raise the average monthly Social Security retirement benefit by $56, from $2,015 to $2,071.
Nearly 71 million Social Security beneficiaries will receive the adjustment with their January payments, while about 7.5 million Supplemental Security Income recipients will see higher amounts starting December 31, 2025. Some individuals qualify for both programs. The adjustment stems from a rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers, as calculated by the Department of Labor’s Bureau of Labor Statistics.
“Social Security is a promise kept, and the annual cost-of-living adjustment is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security,” said Social Security Administration Commissioner Frank J. Bisignano. “The cost-of-living adjustment is a vital part of how Social Security delivers on its mission.”.
In Southern Maryland, the adjustment will reach thousands of beneficiaries across St. Mary’s, Calvert and Charles counties. According to the latest available data from December 2022, St. Mary’s County had 18,005 Old-Age, Survivors and Disability Insurance beneficiaries, including 13,090 retired workers and 2,145 disabled workers. Calvert County counted 16,945 such beneficiaries, with 13,060 retired workers, while Charles County reported 25,475, including 18,515 retired workers. Supplemental Security Income recipients numbered 1,663 in St. Mary’s, 1,010 in Calvert and 2,312 in Charles counties during the same period. These figures, drawn from Social Security Administration records, include some overlap between programs and reflect current-payment status.
The 2.8 percent increase follows a 2.5 percent adjustment for 2025 and marks a modest uptick from recent years. Over the past decade, cost-of-living adjustments have averaged about 3.1 percent, providing a buffer against inflation for retirees and others reliant on fixed incomes. The formula, established by the Social Security Act, compares the third-quarter average of the Consumer Price Index for Urban Wage Earners and Clerical Workers from the current year to the prior year. If no increase occurs, benefits remain unchanged, as seen in 2016 when the adjustment was 0 percent.
Additional changes tied to wage growth take effect in January 2026. The maximum earnings subject to Social Security tax will rise to $184,500, up from $176,100 in 2025. This taxable maximum applies to workers paying into the system, with the tax rate holding steady at 6.2 percent for employees and employers each. For those under full retirement age, the earnings limit before benefits reduce will increase to $23,400, with $1 withheld for every $2 earned above that threshold. At full retirement age, the limit rises to $65,160, with $1 withheld for every $3 over it.
Beneficiaries will receive notifications of their new amounts starting in early December 2025. For the second year, the agency will mail a simplified one-page notice with plain language, exact dollar figures and deduction details. Those with online my Social Security accounts can access notices digitally through the Message Center, along with options for text or email alerts. To switch to electronic delivery and avoid paper notices, individuals must opt out by November 19, 2025. Creating an account at www.ssa.gov/myaccount also allows users to request replacement Social Security cards, check claim status and download tax forms like the SSA-1099.
The adjustment process underscores Social Security’s role in maintaining purchasing power. Since the program’s inception in 1935, benefits have adjusted periodically to account for economic shifts. The shift to annual cost-of-living adjustments began in 1975, replacing ad hoc increases. In Southern Maryland, where median household incomes hover around $90,000 to $110,000 across the three counties, these payments supplement retirements for many in communities like Leonardtown, Prince Frederick and La Plata. Local seniors often pair benefits with part-time work or pensions from federal installations such as Naval Air Station Patuxent River in St. Mary’s County.
Medicare enrollees will find 2026 premium details in their my Social Security accounts starting late November or by mail in December. The standard Part B premium and other changes will appear on www.medicare.gov. For dual-eligible individuals receiving both Social Security and Medicare, the adjustment helps offset potential premium hikes, though exact figures remain pending.
Social Security’s framework ensures stability amid varying inflation rates. The 2026 increase, while below the decade’s average, aligns with cooling consumer prices after peaks in 2022 and 2023. Beneficiaries in Southern Maryland can expect the added funds to aid essentials like housing and groceries in areas where cost-of-living indices track national trends but include regional factors such as proximity to Washington, D.C. The program’s trustees project solvency through 2035, with ongoing discussions in Congress about long-term funding.
This annual rite provides predictability for millions, including the roughly 60,000 Old-Age, Survivors and Disability Insurance recipients in Southern Maryland’s core counties. As notices arrive, the agency encourages digital adoption to streamline access, reflecting broader efforts to modernize services for an aging population.
