As beneficiaries of Social Security look ahead to 2026, one headline stands out: while the cost-of-living adjustment (COLA) applies uniformly across the country, retirees in certain states will see larger dollar increases because their baseline benefits tend to be higher.
According to recent analysis, the average raise may be modest, but the differences between states are meaningful.
The COLA for 2026 has been set at 2.8%, meaning benefits rise by that percentage starting in January 2026 (and for many SSI recipients by December 31, 2025).
Why some states will see bigger raises
Because the 2.8% increase is applied to each retiree’s current benefit amount, those who already receive higher monthly checks will see a larger nominal-dollar bump. In other words: the percent is the same, but the dollar value varies.
Here are the top 10 states where retirees can expect the greatest increases (based on median benefits as of December 2024):
- New Jersey – $2,172 median benefit
- 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
Put simply: if you live in one of these states, you’re likely positioned to see a larger dollarincrease in your Social Security benefit in 2026 compared to many other states.
What this means for you and your retirement planning
While the variation in dollar increases is real, two important caveats apply. First, state of residence does not determine your benefit amount.
Your benefit is primarily based on your lifetime earnings, the age at which you claim, and other personal factors – not directly on the state you live in.
Second, even though retirees in the higher-benefit states will get a larger nominal bump, inflation, rising healthcare premiums (especially Medicare Part B), and regional cost-of-living variations can all erode the effective benefit.
Analysts caution that while a 2.8% raise helps, it may not fully keep pace with real cost pressures for many seniors.
For example, a retiree in a state with a median benefit of $2,172 might see an increase of around $60 per month. In contrast, someone in a state with a median benefit of $1,700 would see roughly $48 per month, same percentage, but different real impact.
What’s the takeaway? If you’re already living in one of the top-10 states listed above, you’re likely set up for a relatively stronger bump in 2026.
If you’re elsewhere, remember that while the increase may be smaller in dollar terms, the percentage is the same, and long-term retirement security depends on more than just the annual raise.
As 2026 approaches, this adjustment presents an opportunity to reassess your retirement income strategy.
If you live in one of those states with higher median benefits, celebrate the advantage, but also stay mindful of cost pressures and ensure your retirement plan accommodates more than just the base check.
If you’re in a state with lower median benefits, consider focusing on supplemental income sources, delaying claiming Social Security, or trimming costs to bolster your overall retirement income mix.
Either way, understanding how geography, lifetime earnings, and benefit formulae interplay can help you navigate the upcoming increase with more clarity. Curious about how your specific state stacks up beyond the top 10 or how your personal benefit might change? I can help you dig in further.