Social Security’s Cost-of-Living Adjustment (COLA) for 2026 is projected at 2.7%, offering a modest boost to retirees.
But because increases are tied to existing benefit amounts, retirees in states with higher average Social Security benefits will enjoy the biggest dollar increases, even though the percentage is uniform. Let’s break down which ten states will benefit most in raw dollars—and why.
Understanding How the 2026 COLA Works
- The COLA is calculated annually using year-over-year inflation of the CPI-W (a subset of the Consumer Price Index).
- All recipients receive the exact same percentage increase.
- The nominal dollar boost, however, depends on current benefit levels—those with higher base amounts get larger absolute dollar increases.
For example, with an average benefit of $2,006.69, a 2.7% COLA would worth about $54 per month, or $650 annually.
States Where the COLA Amount Will Be Largest
Here’s a table listing the 10 states with the highest median Social Security benefits for retired workers as of December 2024, meaning residents there will see the biggest dollar increase in 2026:
| State | Median Benefit (Monthly) | Approx. Monthly COLA Increase (2.7%) |
|---|---|---|
| New Jersey | $2,172 | +$58.64 |
| Connecticut | $2,159 | +$58.29 |
| Delaware | $2,139 | +$57.75 |
| New Hampshire | $2,121 | +$57.27 |
| Maryland | $2,084 | +$56.27 |
| Michigan | $2,067 | +$55.81 |
| Washington | $2,061 | +$55.65 |
| Minnesota | $2,053 | +$55.43 |
| Massachusetts | $2,021 | +$54.57 |
| Indiana | $2,016 | +$54.43 |
These retirees will see the biggest absolute dollar gains, even though everyone receives the same percentage.
Why Some States Outpace Others
- Higher lifetime earnings in wealthier states translate to larger Social Security benefits, boosting the nominal COLA.
- States like New Jersey, Connecticut, Maryland, and Massachusetts also tend to have high median household incomes, reinforcing the trend.
- Some states on the list, like Michigan and Indiana, may have lower median incomes overall; however, retirees there may claim benefits later or attract higher-income earners moving into retirement, elevating their state’s median benefit.
Broader Context: The 2026 COLA and Its Impact
- Institutions project the 2026 COLA at 2.7%, up slightly from 2.5% in 2025.
- Using the current average benefit of $2,006.69, that percentage equates to about $54 more per month, or $650 annually.
- Medicare Part B premiums, expected to rise significantly, may offset much of that increase for some retirees.
The 2026 Social Security COLA of 2.7% brings a small but welcome bump—roughly $54 per month—to retirees nationwide.
However, those in states like New Jersey, Connecticut, and Delaware, where median benefits are highest, will capture the largest nominal increases.
It’s a reminder that while the system distributes COLA fairly in percentage terms, the real value of that adjustment is heavily influenced by your existing benefit level.
Understanding these nuances can help retirees manage expectations and plan ahead—especially as healthcare costs continue to rise and benefit offsets loom larger.
FAQs
Does living in these states instantly give me a higher Social Security check?
No—your benefit is based on your own work history and claiming age. These state differences stem from historical trends, not location-based rules.
Will I still see a 2.7% increase regardless of my state?
Yes. The percentage COLA is the same for all recipients. State differences only affect the money gained in dollars, not the percentage.
Could rising Medicare premiums negate the COLA gain?
Yes. If Medicare Part B premiums increase more than $54 per month, the COLA benefit could be fully—or partially—offset, particularly for beneficiaries with smaller checks.