WASHINGTON (AP) — 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. More than a quarter of Mainers — about 360,000 people — receive Social Security, according to AARP.

The benefits increase for nearly 71 million Social Security recipients will go into effect beginning in January. And increased payments to nearly 7.5 million people receiving Supplemental Security Income will begin on Dec. 31.

 Friday’s announcement was meant to be made last week but was delayed because of the federal government shutdown.

The cost-of-living adjustment, or COLA, for retirees and disabled beneficiaries is financed by payroll taxes collected from workers and their employers, up to a certain annual salary, which is slated to increase to $184,500 in 2026, from $176,100 in 2025.

Recipients received a 2.5% cost-of-living boost in 2025 and a 3.2% increase in their benefits in 2024, after a historically large 8.7% benefit increase in 2023, brought on by record 40-year-high inflation.

The smaller increase for 2026 reflects moderating inflation.

Social Security Administration Commissioner Frank Bisignano said in a statement Friday that the annual cost of living adjustment “is one way we are working to make sure benefits reflect today’s economic realities and continue to provide a foundation of security.”

Emerson Sprick, the Bipartisan Policy Center’s director of retirement and labor policy, said in a statement that cost-of-living increases “can’t solve all the financial challenges households face or all the shortcomings of the program.”

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