A history-making Social Security cost-of-living adjustment (COLA) in 2026 will lift nominal-dollar retired-worker checks well above the national average.

For the lion's share of Social Security's more than 53 million retired-worker beneficiaries, their monthly payout is more than just a check. It represents a financial lifeline that they'd likely struggle to make do without.

An analysis from the Center on Budget and Policy Priorities found that Social Security pulled 22 million people above the federal poverty line in 2023, 16.3 million of whom were adults aged 65 and over. Meanwhile, 24 annual surveys (2002-2025) by Gallup show that 80% to 90% of polled retirees need their Social Security income, in some capacity, to make ends meet.

For Social Security recipients, few if any events are more exciting than the cost-of-living adjustment (COLA) reveal, which typically takes place between the 10th and 15th of October each year. It was pushed back to Oct. 24 this year due to the federal government shutdown.

While all types of Social Security beneficiaries -- retired workers, workers with disabilities, and survivor beneficiaries -- can expect a history-making raise in the new year, retirees in five states will see their average benefit rise more than the national average.

On Oct. 24, the Social Security Administration (SSA) announced that a 2.8% COLA would be heading beneficiaries' way come 2026.

On the surface, a 2.8% raise isn't much to write home about. Between 2022 and 2024, respective COLAs clocked in at 5.9%, 8.7%, and 3.2%, respectively, with the 8.7% increase in 2023 representing the largest on a percentage basis since 1982. Next year's 2.8% payout bump will be modestly higher than the average COLA of 2.3% since 2010.

But the 2026 cost-of-living adjustment is, nevertheless, historic. It marks the first time this century that recipients will receive at least a 2.5% raise for five straight years. The last time this feat was accomplished was from 1988 through 1997, when COLAs clocked in between 2.6% and 5.4% on an annual basis.

Based on projections from the SSA, a 2.8% cost-of-living adjustment in 2026 will increase the average monthly benefit for retired workers by $56 to $2,071. The average monthly payout to retired workers crossed above $2,000 for the first time in the program's history in May.

As for workers with disabilities, their average monthly check is estimated to climb by $44, from $1,586 to $1,630, when the calendar officially changes to 2026.