These five states will see the biggest Social Security raise in 2026, with a historic 2.8% COLA boost. Here's why some retirees will benefit more than others.
The Big Raise
On October 24, the Social Security Administration (SSA) announced a 2.8% cost-of-living adjustment (COLA) for 2026, a significant increase compared to the average 2.3% COLA since 2010. This is a historic moment, as it marks the first time this century that recipients will receive at least a 2.5% raise for five consecutive years. The last time this happened was from 1988 to 1997.
The average monthly benefit for retired workers will rise by $56, reaching $2,071. For workers with disabilities, the average monthly check will climb by $44, from $1,586 to $1,630.
Why Some States Benefit More
While all 70 million traditional Social Security recipients will see this raise, retirees in five states will experience a more substantial increase in their average benefit. These states are:
- Connecticut: Average monthly benefit expected to rise by $60.66 to $2,227.05.
- New Jersey: Average monthly benefit expected to rise by $60.57 to $2,223.74.
- New Hampshire: Average monthly benefit expected to rise by $60.11 to $2,206.90.
- Delaware: Average monthly benefit expected to rise by $59.97 to $2,201.81.
- Maryland: Average monthly benefit expected to rise by $58.96 to $2,164.77.
The key factor behind this disparity is earnings history. The SSA calculates monthly retirement benefits based on a worker's 35 highest-earning, inflation-adjusted years. States with higher median household incomes, like New Hampshire, Maryland, New Jersey, and Connecticut, tend to have residents with higher average wages, resulting in higher Social Security benefits.
The Impact of Saving
Another factor is the ability to save for retirement. Residents in these states may have more opportunities to secure well-paying jobs, allowing them to save more. This can lead to delaying Social Security claims, which can increase monthly benefits by up to 8% per year until age 70 for retired workers.
A Wise Decision
Waiting to claim Social Security can be advantageous, as it can significantly boost average monthly benefits and lifetime income. However, it's essential to consider individual financial situations and consult with a financial advisor for personalized advice.
