(NewsNation) — The Social Security Administration announced a 2.8% cost-of-living adjustment in 2026, upping the average payout for retirees by about $56 each month.

The benefits increase will take effect in January for approximately 71 million Social Security recipients, and on Dec. 31 for the nearly 7.5 million receiving Supplemental Security Income, according to the latest report.

“Social Security is a promise kept, and 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,” Social Security Commissioner Frank J. Bisignano said in a statement.

Over the last decade, the COLA increase has averaged about 3.1% — in 2025, it was 2.5%, and in 2024, 3.2%. The payments are financed by taxes collected by U.S. workers and employers up to a certain annual salary, the Associated Press reported.

Friday’s COLA announcement was timed to align with the release of the September consumer price index report, which was delayed by more than a week due to the ongoing government shutdown.