What is the amount of the cost-of-living adjustment? For the year 2026, annuitants who retired under CSRS will receive 2.8 percent increase and those who retired under FERS will receive a 2.0 percent increase. The rate varies each year.
The minimum rate of basic pay for the senior-level (SL) and scientific and professional (ST) rate range is increased by 1.0 percent, which is the amount of the base GS increase, and is $151,661 in 2026.
2026 COLA Set – 2.8 percent for CSRS and Social Security, 2.0 percent for FERS.
Many federal retirees get 2.8% in 2026 COLA, but some to see a smaller increase. The 2026 COLA of 2.8% will be added to retirement benefits beginning in January. But FERS retirees will receive a 2% “diet” COLA.
Further, where the COLA count falls between 2 and 3 percent—as it did in the inflation count for the 2026 adjustment—eligible FERS retirees receive a flat 2 percent; all of those provisions are part of the 1980s law that created FERS. Social Security benefits also will increase by 2.8 percent.
Maximum monthly benefits increase
The Social Security Administration sets a limit for the maximum monthly benefit a worker can receive if they retire at full retirement age. In 2025, the maximum monthly benefit for a worker retiring at full retirement age was $4,018. That limit will increase to $4,152 in 2026.
From 1st January 2026, the State pension (contributory) personal rate will increase by €10 per week from €289.30 to €299.30 per week (assuming at least 2080 full rate contributions were made to obtain the maximum rate)3. Ancillary social welfare rates were also increased in Budget 2026.
Last week, the Social Security Administration (SSA) announced that the Cost of Living Adjustment (COLA) for 2026 will be a 2.8 percent increase.
Those under the Civil Service Retirement System (CSRS) usually receive the full COLA. Retirees under the Federal Employees Retirement System (FERS) often get a reduced version, depending on the inflation rate, so even a small change can have a real impact.
Tier 1 members who retired after 2011, but before July 1, 2025, would have a minimum 2.0% COLA that could increase up to 3.0% depending on how much of their service was prior to 2011. Tier 1 members who retire after July 1, 2025, will receive a 2.0% fixed annual COLA.
The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to nearly 71 million Social Security beneficiaries in January 2026. Increased payments to nearly 7.5 million SSI recipients will begin on December 31, 2025. (Note: Some people receive both Social Security and SSI benefits.)
How many Americans have $500,000 in retirement savings? Of the 54.3% of U.S. households that have any money in retirement accounts, only about 9.3% have $500,000 or more in retirement savings.
For people retiring at full retirement age in 2026, the maximum benefit has increased from $4,018 to $4,152. However, “there is no simple maximum amount that covers everyone receiving retirement benefits,” according to the SSA.
A look at preliminary 2026 salary budgets
Specifically, employers are projecting1 a mean merit increase budget of 3.1%, and 3.5% mean total increase, including zeros. There is a bit of variation when you look at what different industries are projecting.
What is the amount of the cost-of-living adjustment? For the year 2026, annuitants who retired under CSRS will receive 2.8 percent increase and those who retired under FERS will receive a 2.0 percent increase. The rate varies each year.
GS-8 to GS-12: mostly mid-level technical and first level supervisory positions. GS-13 to GS-15: Top-level technical and supervisory positions.
The cost-of-living increase for Social Security retirees will be 2.8 percent in 2026. For government retirees, the exact amount of the increase in their federal annuities depends on their retirement system.
The House-passed version of the One Big Beautiful Bill Act (OBBBA) included a dramatic cut. It would have ended the FERS Supplement for anyone retiring on or after January 1, 2028.
With regard to Medicare, the decision is yours. Your FEHB coverage will continue whether or not you enroll in Medicare. If you can get premium-free Part A coverage, we advise you to enroll in it. Most Federal employees and annuitants are entitled to Medicare Part A at age 65 without cost.
For the average retired worker, the 2.8 percent COLA is expected to increase their monthly benefit by about $56. This will raise the average payment from approximately $2,008 in 2025 to about $2,064 in 2026. Social Security retirement beneficiaries will see this increase reflected in their January 2026 payments.
Who qualifies for extra $144 added to their Social Security depends on specific federal benefit programs and state supplemental payments. This additional monthly payment typically comes through Supplemental Security Income (SSI) state supplements or special Social Security Administration programs.
In 2018, Certified Financial Planner Wes Moss wrote this: “For every $1,000 per month you want to have at your disposal in retirement, you need to have $240,000 saved.” (Source: WesMoss.com). He called this “The 1,000 Bucks-A-Month Rule.”
DWP benefits that are linked to inflation rise by 3.8% in April 2026, as do inflation-linked benefits administered by HMRC. Universal Credit standard allowances will receive an additional uplift of 2.3%. The basic and new State Pension will be uprated by 4.8% from April 2026.
Based on changes in the Consumer Price Index (CPI), OAS benefits increased by 0.3% for the January to March 2026 quarter, for an increase of 2.0% over the past year, from January 2025 to January 2026.
How much money can I have in the bank before it affects my pension? It depends on your total assessable assets. For example, homeowner couples can have up to $481,500 in combined assets, including bank balances, before their pension is reduced.