Social Security COLA 2026: These 10 states will get the largest raises

Nearly 74 million Americans rely on Social Security benefits to survive — and for those who do, knowing what the Social Security Administration determines the cost of living adjustment to be for that year is a big deal.

It allows recipients to budget and plan for the year ahead.

According to the Social Security Administration, the actual COLA increase is determined by the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from July to September of the calendar year.

Because the increase is based on inflation, existing benefit amounts, and lifetime earnings, what that increase looks like varies between people and by state.

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Retirees living in the 10 states with the highest Social Security benefits will see the largest COLA thanks to a percentage system.

According to The Motley Fool, based on Social Security Administration’s Annual Statistical Supplement data the highest median Social Security benefits for retired workers include:

• New Jersey: $2,172
• Connecticut: $2,159
• Delaware: $2,139
• New Hampshire: $2,121
• Maryland: $2,084
• Michigan: $2,067
• Washington: $2,061
• Minnesota: $2,053
• Massachusetts: $2,021
• Indiana: $2,016

Benefits are determined using a formula that accounts for lifetime earnings, so in states where the cost of living and income are higher, that percentage and benefit amount will be too.

The official COLA increase for 2026 was scheduled to be announced Oct. 15, but because of the government shutdown, that announcement may be delayed.

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While we don’t know when those numbers will be officially announced, we do have a pretty good idea of what they might look like based on the calculation the Social Security Administration uses to determine the increase.

Using this calculation, bipartisan group The Senior Citizens League predicts the increase will be about 2.7%, which is slightly up from 2025’s increase of 2.5%.

“From a historical perspective, the predicted 2026 COLA would rank 29th among the COLAs implemented since 1977, which was the first year that the SSA began calculating COLAs based on the CPI-W,” TSCL wrote in a release.

“The last COLA, implemented in 2025, currently ranks 33rd.”

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A 2.7% COLA would result in about an extra $54 per month for the average retired worker, increasing the monthly benefit from $2,008 to $2,062.

While the COLA increase is semi-predictable, the government shutdown complicates other moving parts essential to keeping the Social Security Administration running smoothly and serving beneficiaries.

Prior to the shutdown, the Social Security Administration created a contingency plan indicating it would retain approximately 45,000 (90%) of its workforce during the shutdown, while furloughing roughly 6,200 employees.