Social Security is a vital source of income for millions of retirees and their spouses across the United States. Each year, the government adjusts these benefits through a cost-of-living adjustment (COLA) to help keep pace with inflation. For 2026, this increase is set at 2.8%. While this may sound encouraging, its real value may not stretch far enough to ease the pressure of rising everyday costs.
If you currently receive or plan to receive Social Security spousal benefits, it’s important to understand how COLA impacts your payments, what to expect in the coming year, and practical ways to strengthen your financial position beyond the small COLA raise.
How Social Security Eligibility Works
To qualify for Social Security retirement benefits, you generally must work and contribute to the system through payroll taxes. Over time, you earn work credits, and most people become eligible for benefits once they have a total of 40 credits, typically achieved after about ten years of work.
You may start collecting benefits at age 62, but if you claim before reaching your full retirement age (FRA), your monthly payments will be permanently reduced. Waiting until your FRA — or even longer — allows you to receive your full benefit amount.
Spousal Benefits: A Lifeline for Nonworking or Part-Time Spouses
Not everyone spends their life in full-time employment. Many people focus on raising children, managing households, or caring for aging relatives, which can limit their ability to build their own Social Security record.
In such cases, Social Security spousal benefits offer valuable support. You may qualify for these payments if:
- You are currently married to someone who receives or is eligible for Social Security.
- You are divorced but were married for at least 10 years, your ex-spouse is eligible, and you haven’t remarried.
The maximum spousal benefit equals up to 50% of your spouse’s benefit at their full retirement age, but the actual amount can vary depending on your age and filing situation.
How the 2026 COLA Affects Spousal Benefits
The Cost-of-Living Adjustment (COLA) is designed to help retirees keep up with inflation by increasing benefits based on changes in the Consumer Price Index. In 2025, recipients saw a 2.5% increase, and this will rise to 2.8% in 2026.
If you receive spousal benefits, you’ll automatically get the same COLA-based percentage increase. However, since spousal benefits are often smaller than regular retirement benefits, the actual dollar amount of your raise will be modest.
For example, as of August 2025, the average monthly spousal benefit was around $955. After a 2.8% COLA, that amounts to only about $27 more per month—and this doesn’t account for potential increases in Medicare Part B premiums, which could offset much of that gain.
Prepare Your Finances Beyond COLA
A modest COLA increase may not be enough to keep up with living expenses, especially with rising healthcare and housing costs. Rather than relying solely on Social Security adjustments, consider these steps to strengthen your financial situation in 2026:
- Create a tighter budget: Identify areas where you can cut unnecessary expenses.
- Downsize your home: Moving to a smaller or more affordable property can reduce bills and maintenance.
- Generate extra income: Rent out a spare room, your driveway, or take on part-time or freelance work.
- Explore relocation: Some states or towns offer lower taxes or living costs for retirees.
These strategies can help you maintain financial stability and ease the pressure of inflation, even if the COLA adjustment falls short.
Maximize Your Retirement Income
Many retirees miss out on lesser-known strategies that could significantly increase their Social Security income — sometimes by as much as $23,760 per year. Educating yourself about claiming strategies, timing benefits correctly, and coordinating with your spouse’s benefits can make a major difference.
You can find more guidance and expert insights on maximizing Social Security income through reputable financial advisory resources such as:
If you rely on spousal benefits, you’ll receive the same COLA increase as all other Social Security beneficiaries in 2026. Just remember, this boost is modest, so it’s wise to plan ahead and take proactive steps to protect your financial well-being.
