The Social Security Administration on Friday announced a 2.8% cost-of-living adjustment for 2026, an increase that will automatically boost monthly payments for the program's roughly 71 million beneficiaries starting early next year.

The Social Security cost-of-living increase will go up by 2.8% in 2026, which translates to an average increase of more than $56 for retirees every month, agency officials said Friday.

Next year, "rising Medicare premiums alone could fully consume the COLA for many seniors in 2026,” said Mary Johnson, an independent Social Security and Medicare policy analyst.