The Social Security Administration, marred by delays during a federal government shutdown, announced on Friday a 2.8% cost-of-living adjustment for 2026, above estimates from advocacy groups as benefits keep pace with inflation.

How would a 2.7% COLA stack up against previous increases? Last year, Social Security beneficiaries received a 2.5% COLA. Over the last two decades, the average Social Security increase has been 2.6%. The highest COLA during that period was 8.7% in 2023. The lowest was 0% in two years -- 2010 and 2011.

The average Social Security recipient can expect to see a $648 annual raise in 2026. Though the final numbers will not be announced until October 24th, estimates point to the Social Security Administration’s cost-of-living adjustment (COLA) increasing benefits by 2.7 percent starting in January.