Retirement Social Security

10 States Where Retirees Will Get the Biggest Social Security Raise in 2026

All retirees receive the same COLA, but higher benefit states get a larger dollar increase.

By Lee Huffman

Edited by Laura Hohenstein

Updated Jan. 16, 2026

Each year, millions of retirees receive an increase in Social Security benefits based on the cost-of-living adjustment (COLA). For 2026, the COLA is 2.8% nationwide. However, the actual dollar increase retirees receive may vary significantly from state to state.

You won't receive a higher payout based on where you live, but the average Social Security income for each state varies based on a variety of factors. Even though the percentage increase is the same for everyone, states with higher average monthly benefits will see larger dollar raises to retire comfortably.

Here's what you need to know about Social Security COLA increases and the 10 states with the biggest Social Security increases.

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How Social Security COLA actually works

Social Security cost-of-living adjustments (COLAs) are based on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This information is tracked by the Bureau of Labor Statistics and used by various government agencies to adjust benefits, contribution limits, and other measures.

The COLA is applied evenly across all benefits. A 2.8% COLA means every recipient's benefit rises by 2.8%, but 2.8% of a larger check equals a bigger dollar increase. That's why a retiree receiving $2,300 per month will see a much larger raise than someone receiving $1,400, even though both receive the same COLA increase.

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10 states with the biggest Social Security increase

This chart identifies the 10 states with the biggest Social Security increase based on the 2025 Annual Statistical Supplement issued by the Social Security Administration. While this report was released in 2025 and has the latest available data, the numbers reflect 2024 benefits.

Rank	State	Monthly Benefit (2024)
1	Connecticut	$2,196
2	New Jersey	$2,190
3	New Hampshire	$2,184
4	Delaware	$2,171
5	Maryland	$2,140
6	Washington	$2,099
7	Minnesota	$2,095
8	Massachusetts	$2,084
9	Michigan	$2,066
10	Utah	$2,065

Why average benefits differ so much by state

The Social Security Administration publishes average monthly benefit data by state. Retiree benefits in 2024 ranged from $1,814 (Mississippi) to $2,196 (Connecticut). While the cost of living also varies among states, a difference of almost $400 a month can have a substantial impact on your retirement income. Several factors explain why retirees in some states start with higher baseline benefits than others.

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Lifetime earnings are the biggest driver

Social Security benefits are calculated using a worker's 35 highest-earning years, adjusted for inflation. States with higher average wages tend to produce retirees with higher benefits. Workers who earn higher salaries throughout their careers generally retire with larger monthly checks. When COLA is applied to those benefits each year, you'll receive a larger dollar increase.

Higher median wages raise state average Social Security benefits

States with strong professional, technical, financial, or government employment often show higher median household and individual wages. Over a full career, those earnings compound into higher Social Security benefits for workers in those industries.

Longer full-time work histories matter

Social Security benefits are based on the 35 years with the highest wages (adjusted for inflation). Retirees who worked consistently for 35 years or more avoid zero-earning years in their benefit calculation. States with higher labor force participation and longer average career lengths tend to produce higher benefit averages.

This shows that even modest gaps in employment can lower lifetime earnings enough to reduce both monthly benefits and future COLA dollar increases. If you have years with zero income, consider delaying retirement or taking a part-time job in retirement to boost your Social Security benefits.

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More workers earn near the taxable maximum

Each year, Social Security taxes apply only up to a set wage limit. In 2026, the maximum taxable earnings subject to Social Security taxes are $184,500. Workers who consistently earn near or above the annual limit maximize their contributions and future benefits.

States with higher average salaries tend to have more workers who max out their Social Security contributions. Compare that with lower-wage states, where workers may never reach the taxable maximum. Those lower wages result in lower baseline benefits and smaller COLA adjustments.

When Social Security benefits started

Filing for Social Security benefits before full retirement age can reduce monthly income by up to 30%. Seniors in some states tend to claim retirement benefits earlier than in others, which can lower the average retiree benefit in those states. Filing early may be due to a lack of job opportunities, illness, or injuries that impact job options, or working in industries that have earlier retirement ages.

Retirees in other states may have longer careers or significant savings that allow them to delay filing for Social Security benefits. For every year you wait past full retirement age (until age 70), your monthly income increases by 8%. A larger monthly benefit not only increases the state average but also results in a larger COLA dollar amount each year.

What this does not mean for retirees

Your actual Social Security benefits may be dramatically different than your state average. Moving to a higher-benefit state will not get you an increase in your Social Security benefits. Your benefits are based entirely on your earnings history and when you began receiving them, not residency. These comparisons provide context, but they should not be used as a roadmap for boosting benefits after retirement.

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Bottom line

While these 10 states have the biggest Social Security increases, it is important to focus on your financial situation instead. With the 2026 COLA adjustment of 2.8%, calculate your new monthly deposit to understand how much additional income you'll actually receive. Depending on your situation, the COLA may not fully offset rising expenses, especially for health care, housing, and insurance.

Retirees and workers planning to retire can review current benefit amounts and future estimates at any time through the my Social Security account portal. If your new Social Security benefit doesn't meet your retirement plan, review your finances for opportunities to increase savings, earn higher returns on investments, or earn additional income through part-time work or owning a business.

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