As household budgets feel the persistent sting of inflation, Social Security’s annual cost-of-living adjustment (COLA) is a little nudge that helps keep the lights on and the pantry stocked. According to the information provided, the Social Security Administration plans to announce the 2026 adjustment on Oct. 15, provided the federal government shutdown has ended.
A forecast from The Senior Citizens League pegs next year’s COLA at about 2.7 percent. The percentage is the same nationwide, but the raise in dollars is not. Bigger current checks produce bigger dollar increases. So which states are set up for the largest boosts, and what can you do now to prepare?
What is the 2026 COLA and when will we know?
Social Security sets each year’s COLA by looking at inflation in the third quarter, specifically the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI‑W, for July through September. If the index rises, benefits rise by the same percentage. That is why the 2025 COLA was 2.5 percent after the CPI‑W rose by that amount in the third quarter of 2024.
As noted above, the agency is expected to release the 2026 figure in mid‑October, and the increase will hit benefits payable in January 2026. The percentage itself is national, but what you see in your deposit depends on the steps Social Security takes to compute payments, including how it handles rounding and Medicare deductions.
How does SSA turn a COLA into your actual payment?
First, the COLA is applied to your primary insurance amount, or PIA, which is the benefit based on your lifetime earnings under Social Security’s formula. SSA then truncates that PIA result to the next lower dime. Afterward, if you have Medicare Part B, that premium is deducted. Finally, your monthly benefit payment is rounded down to the next lower whole dollar before it is paid. This multi-step calculation explains the difference between the headline percentage and what lands in your account.
Because the COLA is a percentage, people with larger current benefits get larger increases in dollars. That is the simple reason states with higher median retired‑worker benefits will, in aggregate, see bigger dollar raises next year even though everyone receives the same COLA percentage.
Which 10 states are positioned for the biggest dollar increases in 2026?
The table below shows the states with the highest median monthly benefit for retired workers, based on the Social Security Administration’s Annual Statistical Supplement 2025. These medians reflect benefits paid in December 2024 and are the best single snapshot of where typical checks are larger today.
| State | Median retired‑worker benefit (Dec. 2024) |
| New Jersey | $2,172.00 |
| Connecticut | $2,159.00 |
| Delaware | $2,139.00 |
| New Hampshire | $2,121.00 |
| Maryland | $2,084.00 |
| Michigan | $2,067.00 |
| Washington | $2,061.00 |
| Minnesota | $2,053.00 |
| Massachusetts | $2,021.90 |
| Indiana | $2,016.00 |
These figures come directly from SSA and show where a uniform COLA produces the largest dollar additions. For example, a 2‑something percent increase on a 2,100 dollar median check yields a bigger bump than the same percentage on a 1,800 dollar median check. Data source: Social Security Administration, Annual Statistical Supplement 2025, Table 5.J6.
Does moving change your Social Security benefit?
Short answer: no. Where you live does not directly change the calculation of your Social Security benefit. Benefits are determined by your lifetime covered earnings and the age you first claim. That is baked into your PIA, and the COLA is then applied to that PIA. Moving cannot raise or lower that math.
So why do some states show higher typical benefits? Incomes tend to be higher in several of the states at the top of the list, which helps explain why many retirees there have larger benefits. Census Bureau American Community Survey rankings show states such as New Jersey, Connecticut, New Hampshire, Maryland, and Massachusetts among the higher‑income states, a pattern that lines up with the SSA medians. At the same time, the data also reflect migration and claiming choices. For instance, some retirees work in one state and choose to retire in another, and claiming at older ages generally results in larger benefits.
How to get ready for the 2026 COLA now
Before the official number arrives, a little housekeeping can make the adjustment smoother. The goal is to know your current benefit, estimate a reasonable range for your 2026 amount, and avoid surprises in your net deposit after premiums or withholding. To prepare, financial experts recommend a few key steps:
- Make a rough estimate. Multiply your current gross monthly benefit by 0.027 to get an approximate 2.7 percent increase, then remember the sequence SSA uses: COLA is applied to your PIA, the result is truncated to the next lower dime, Medicare premiums are deducted if you have them, and your payment is rounded down to the next whole dollar. This means your net change may differ by a dollar or so from your back‑of‑the‑envelope math.
- Check your earnings record. Since lifetime earnings drive your PIA, make sure SSA’s record is accurate in your my Social Security account so future adjustments reflect the right base.
- Watch for Medicare effects. If your Part B premium changes for 2026, your deposit may rise by less than the gross COLA because the premium comes out before SSA rounds your payment to the dollar.
- Keep taxes in view. Federal taxation rules on Social Security benefits are separate from COLA mechanics, and some states tax benefits while others do not. Plan withholding or estimated taxes accordingly.
Do not chase geography. Moving states will not change your benefit formula, although it can change your cost of living or state tax picture. The benefit itself follows your earnings history and claim age.A quick recap: the COLA is national, but dollar increases vary in practice. States with higher median retired‑worker benefits will see larger boosts in dollars, and you can take simple steps now so your budget reflects what will actually show up in your account in January.
