The Social Security Administration recently announced that Social Security benefits and Supplemental Security Income (SSI) payments will increase by 2.8% in 2026. This annual cost-of-living increase is designed to help retirees and other beneficiaries maintain their purchasing power as prices change over time.

Over the last decade, the cost-of-living adjustment (COLA) increase has averaged about 3.1%. The COLA was 2.5% in 2025.

For many retirees, Social Security is just one part of a broader income plan, but it’s still important to understand how these updates may affect your cash flow and taxes in the year ahead.

Here’s what to know:

• The average retirement benefit will increase by about $56 per month beginning in January
• The maximum amount of earnings subject to Social Security tax will rise to $184,500 (up from $176,100)
• The Social Security Administration notifies recipients by mail about the new benefit amount this month

Even modest changes like this can be a helpful checkpoint for your overall plan. Consider:

• Reviewing your income and withdrawal strategy to ensure it still aligns with your goals
• Logging into your online my Social Security account – if you have one – to see your updated benefit amount
• Connecting with your BridgePort advisor if you’d like to discuss how this change might affect you

At BridgePort, we believe thoughtful planning helps create lasting confidence. Whether the updates are big or small, each one is an opportunity to pause, reflect, and stay on course toward your long-term goals.