AN impending boost to Social Security checks would mean beneficiaries are in line to receive monthly payments worth up to $5,246.
The paycheck bump, thanks to the yearly cost-of-living adjustment, would spike Social Security payments in the coming months for millions of Americans.
When the COLA takes effect next year, Americans may see monthly checks worth up to $5,246[/caption]
At the start of 2025, Social Security recipients saw a 2.5% jump in their checks thanks to the COLA hike, down from the 3.2% adjustment last year.
With many economists and analysts expecting overall prices to continue to rise, a larger COLA for next year’s Social Security benefits isn’t out of the picture.
As of mid-August, some experts have predicted that Social Security checks will increase by 2.7% in 2026 due to the COLA.
If their estimates are accurate, beneficiaries would see an average increase of $50 per month, or roughly $600 a year, starting in January.
Retirees who receive the average monthly check of $2,006 would be handed an extra $54 under a 2.7% COLA, although the many Americans receiving payments below the average would see a jump of around $25 to $30 per month.
Some beneficiaries, on the other hand, receive far more than the average, with the maximum monthly Social Security check capped at $5,108 this year for Americans who retire at age 70.
Should a 2.7% COLA take effect next year, the highest benefit amount would surge by almost $138 to $5,246 per month, which comes out to an extra $1,656 over the course of a year.
While many retirees would welcome the extra cash hitting their bank accounts each month, many are concerned that the additional money will not help much to cover their costly bills for health care, utilities, and more.
Fears are especially widespread as tariffs threaten to drive up prices on many everyday goods and products on top of general inflation.
One survey revealed that roughly 50% of Americans 61 and older are worried about how tariffs will impact their retirement savings or retirement income.
Additionally, around two-thirds of Social Security beneficiaries believe that higher tariffs will push inflation at least somewhat beyond what the upcoming COLA can cover, per the 12th edition of the Nationwide Retirement Institute’s Social Security Survey.
ANNOUNCEMENT INCOMING
Although experts have forecasted that next year’s COLA will jump to 2.7%, the Social Security Administration will not announce the official annual adjustment number for benefits until October.
The yearly COLA is based on inflation numbers in the third quarter, reflecting monthly changes for July, August, and September for the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.
The CPI-W data for these three months in 2025 will be averaged and then compared with the average of the third quarter last year.
How to boost your Social Security payments
This year, the highest possible monthly Social Security checks are $5,108.
To get the maximum distributions consistently and the new maximum in 2026, Americans can take a few actions to maximize their payments.
1. Delay your collection
Americans can start cashing in on their benefits once they reach 62 as long as they have worked and paid Social Security taxes for a decade or more.
The age at which you begin collecting your monthly checks has a direct impact on how much money you receive, so many experts have advised retirees to delay their collection as long as possible.
It is an “excellent strategy,” Social Security pro Shalae Morgan previously told The U.S. Sun, and can potentially add an extra $27,324 to your bank account each year.
Many financial planners encourage Americans approaching retirement to utilize other money pots, such as retirement funds, if it will help to delay their Social Security application.
2. Work longer
A second strategy to bump up your Social Security payments is to work longer, as payments are calculated using a person’s 35 highest-earning years.
Working longer offers Americans the opportunity to increase their monthly check by replacing one of their lower earnings years with one in which they made more money.
3. Max out your income
A third Social Security secret that Americans can use to boost their lifetime payments is to max out their income for as many years as possible.
This year, the first $176,100 of an individual’s earnings is subject to Social Security tax.
Americans who reach this cap during all 35 of their highest-earning years will be eligible to receive the maximum monthly payment at their FRA, which is $4,018 in 2025.
The percentage increase, if any, is what the SSA uses to calculate the COLA hike.
Once the adjustment is determined, Social Security checks would be raised starting beginning with December benefits, payable in January 2026.
Supplement Security Income, or SSI, benefits would increase for January, but those checks would be distributed at the end of December.
As the SSA waits to announce its official COLA number, the federal agency has other major changes underway.
For example, Social Security officials have clarified changes to its new paper checks policy ahead of the September 30 deadline.
Meanwhile, the SSA “refused” to make a payment change after an “inconvenient” law – and the issue won’t be fixed for two months.
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