Q: What is the Cost-of-Living Adjustment (COLA) for 2026?A: According to the Social Security Administration, benefit payments for Social Security beneficiaries will increase by 2.8 percent in 2026, a welcome increase for the many Americans collecting benefits.1 This increase will have a considerable effect, affecting more than 75 million Social Security and Supplemental Security Income (SSI) recipients. Additionally, beneficiaries should receive a summary of the new benefits and the date the 2026 COLA is set to take effect.1 While Social Security plays an important role in many households’ financial lives, your retirement income needs may change over time. This might be an opportunity to make adjustments that can help you feel a little more comfortable this year. Q: What is full retirement age, and how is it calculated?A: While you can start receiving Social Security benefits at age 62, you are only eligible for full benefits if you begin at the full retirement age of 67. If you delay your benefits until age 70, those benefits will increase.2 Starting benefits early means a permanent reduction. You'll receive less each month for every month before your full retirement age that you begin collecting.2 |
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Essentially, the longer you collect benefits, the less you receive each time. So, while you may collect benefits for a longer period of life if you begin early, the flip side is that the benefit you collect will be reduced. Q. When should you start collecting benefits?A: Each person’s retirement goals and needs are different. Some may have the ability to delay their retirement and take advantage of the credits that will offer them a larger monthly benefit. Others may find it necessary to take early benefits, even before they reach full retirement age. Bear in mind, the recent COLA increase will mean slightly larger benefits for all, but this should pretty much stay in line with the cost of living. If you have questions about the hows and whens of drawing benefits, let’s talk. |
1. SSA.gov, July 28, 2025. |
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