Core Points - The Social Security Administration (SSA) announced a 2.8% cost-of-living adjustment (COLA) for 2026, translating to an average increase of about $56 per month for retirees [1][2] - Nearly 71 million beneficiaries will see this adjustment starting January 2026 [2] - Beneficiaries can estimate their new benefits by creating an account on SSA.gov [2][10] Group 1: COLA Details - The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year to the third quarter of the current year [9] - For example, a retiree currently receiving $1,900 will see their monthly benefit increase to approximately $1,953.20, reflecting a $53.20 increase [4] Group 2: Managing Benefits - Social Security benefits account for about 31% of income for individuals over 65, with nearly 90% of Americans in this age group receiving benefits [5] - Retirees can enhance their income by parking Social Security payments in high-yield savings accounts, which currently offer rates of 4% to 5% [7] - Other options include certificates of deposit (CDs) and money market accounts, which can provide better interest rates while allowing varying levels of access to funds [8] Group 3: Account Setup - Setting up a My Social Security account is straightforward and allows beneficiaries to manage their benefits and estimate future payments [10][12] - Beneficiaries must provide an email address and additional authentication to verify their identity during account setup [11]