Social Security is a lifeline for millions of retirees, and every year, the program makes adjustments to help beneficiaries keep pace with rising costs. The most important of these adjustments is the cost-of-living adjustment (COLA), which ensures that payments grow alongside inflation.
With the 2026 COLA announcement coming on October 15, many retirees are eager to know how much their benefits will increase.
While the official percentage will apply equally to everyone, the actual raise in dollars varies depending on how much a retiree already receives. This is why retirees in certain states with higher median Social Security benefits will see the largest boosts in their checks in 2026.
How Social Security COLAs Are Calculated
The annual COLA is tied to inflation, specifically the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Here’s the process:
The Social Security Administration compares the average CPI-W from July through September of the current year with the same period from the previous year.
The percentage increase becomes the COLA for the next year.
That percentage is applied to each retiree’s monthly benefit amount.
The final figure is rounded down to the nearest dime.
Example: A retiree getting $1,500 per month in 2024 saw a 2.5% COLA in 2025, raising their benefit to $1,537.50.
This means retirees with larger benefits get bigger raises in dollar terms, even though the COLA percentage is the same for everyone.
States With the Largest Social Security COLAs in 2026
Because COLAs are applied as percentages, retirees in states with higher median benefits will receive the biggest increases. Below are the 10 states with the highest median Social Security payments for retired workers as of December 2024.
| State | Median Monthly Benefit |
|---|---|
| New Jersey | $2,172 |
| Connecticut | $2,159 |
| Delaware | $2,139 |
| New Hampshire | $2,121 |
| Maryland | $2,084 |
| Michigan | $2,067 |
| Washington | $2,061 |
| Minnesota | $2,053 |
| Massachusetts | $2,021 |
| Indiana | $2,016 |
If the COLA for 2026 turns out to be 2.7% (as currently estimated), then:
A retiree in New Jersey would see about a $58.64 monthly raise.
A retiree in Indiana would see about a $54.43 monthly raise.
Why These States Lead in Social Security Benefits
State of residence does not directly affect Social Security benefits. Instead, benefits are based on lifetime earnings and the age at which benefits are claimed. However, there’s an indirect connection:
States with higher median incomes tend to have higher Social Security payouts.
For example, New Jersey, New Hampshire, Maryland, Washington, and Massachusetts rank among the top 10 states for income.
In states like Michigan and Indiana, higher Social Security payments may be due to retirees claiming later or people moving there after retiring.
The Key Takeaway
Moving to another state won’t automatically raise your Social Security benefits. Instead, your benefit is based on how much you earned during your career and when you chose to start collecting. States with higher incomes simply tend to produce higher benefits.
The 2026 Social Security COLA, set to be announced on October 15, will give retirees a raise to help offset inflation. While all beneficiaries will receive the same percentage increase, retirees in states with higher average benefits—like New Jersey, Connecticut, and Delaware—will see the biggest jumps in dollar terms.
For retirees everywhere, though, COLAs remain a vital tool in protecting financial stability during retirement.
