Retirees in These 5 States Will Receive the Biggest Social Security Raise in 2026

Key Points

Most aged beneficiaries rely on their Social Security income as a financial foundation during retirement. Though Social Security's 2026 raise of 2.8% is modest, it's led to an event that beneficiaries haven't been privy to since the late 20th century. Earnings history can create sizable average payout differences between states. The $23,760 Social Security bonus most retirees completely overlook ›

For the lion's share of Social Security's more than 53 million retired-worker beneficiaries, their monthly payout is more than just a check. It represents a financial lifeline that they'd likely struggle to make do without.

An analysis from the Center on Budget and Policy Priorities found that Social Security pulled 22 million people above the federal poverty line in 2023, 16.3 million of whom were adults aged 65 and over. Meanwhile, 24 annual surveys (2002-2025) by Gallup show that 80% to 90% of polled retirees need their Social Security income, in some capacity, to make ends meet.

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For Social Security recipients, few if any events are more exciting than the cost-of-living adjustment (COLA) reveal, which typically takes place between the 10th and 15th of October each year. It was pushed back to Oct. 24 this year due to the federal government shutdown.

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While all types of Social Security beneficiaries -- retired workers, workers with disabilities, and survivor beneficiaries -- can expect a history-making raise in the new year, retirees in five states will see their average benefit rise more than the national average.

Social Security's 2026 COLA is historic

On Oct. 24, the Social Security Administration (SSA) announced that a 2.8% COLA would be heading beneficiaries' way come 2026.

On the surface, a 2.8% raise isn't much to write home about. Between 2022 and 2024, respective COLAs clocked in at 5.9%, 8.7%, and 3.2%, respectively, with the 8.7% increase in 2023 representing the largest on a percentage basis since 1982. Next year's 2.8% payout bump will be modestly higher than the average COLA of 2.3% since 2010.

But the 2026 cost-of-living adjustment is, nevertheless, historic. It marks the first time this century that recipients will receive at least a 2.5% raise for five straight years. The last time this feat was accomplished was from 1988 through 1997, when COLAs clocked in between 2.6% and 5.4% on an annual basis.

Based on projections from the SSA, a 2.8% cost-of-living adjustment in 2026 will increase the average monthly benefit for retired workers by $56 to $2,071. The average monthly payout to retired workers crossed above $2,000 for the first time in the program's history in May.

As for workers with disabilities, their average monthly check is estimated to climb by $44, from $1,586 to $1,630, when the calendar officially changes to 2026.

While all 70 million traditional Social Security recipients will receive this raise in 2026, it'll be more impactful, on a nominal-dollar basis, for retired workers in five states.

Social Security retired-worker benefits will rise the most in these five states in 2026

Each year, the SSA releases an Annual Statistical Supplement that intricately breaks down how benefits are being disbursed. Among the laundry list of categories covered is a detailed geographic breakdown of average and median benefits by state for all three major beneficiary types (retired workers, workers with disabilities, and survivor beneficiaries). In this instance, I'm specifically looking at average retired-worker benefits.

The most recent statistical supplement doesn't take into account the 2.5% COLA that was passed along in 2025, or the recently announced 2.8% raise that beneficiaries will receive in the upcoming year -- but I'm more than happy to do a little math.

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Factoring in COLAs for 2025 and 2026, retirees in the following five states can expect the largest nominal-dollar Social Security raise next year:

Connecticut: Average monthly retirement benefit expected to rise by $60.66 to $2,227.05.New Jersey: Average monthly retirement benefit expected to rise by $60.57 to $2,223.74.New Hampshire: Average monthly retirement benefit expected to rise by $60.11 to $2,206.90.Delaware: Average monthly retirement benefit expected to rise by $59.97 to $2,201.81.Maryland: Average monthly retirement benefit expected to rise by $58.96 to $2,164.77.

The biggest reason retirees in these five states will, on average, receive a bigger nominal-dollar raise than the national average likely boils down to their earnings history.

When the SSA calculates a worker's monthly retirement benefit, it takes four factors into account:

Work historyEarnings historyFull retirement ageClaiming age

While the latter two have to do with the year a worker is born and their age when they initially claim their retirement benefit, the former two factors are based on how long they worked and how much they earned, on average, each year. The SSA accounts for their 35 highest-earning, inflation-adjusted years when calculating their monthly payout. In other words, individuals with higher average wages or salaries throughout their lifetime would be expected to receive a larger monthly benefit from Social Security.

In terms of median household income by state, based on U.S. Census Bureau data for 2024, New Hampshire ($111,800), Maryland ($109,700), New Jersey ($103,500), and Connecticut ($99,240), respectively, rank Nos. 2, 3, 6, and 8, excluding the District of Columbia. If residents of these states are landing well-paying jobs, it explains why their Social Security retired-worker benefit is higher than the national average.

The other factor to consider is that a higher median household income may allow workers an easier path to save for retirement or grow their wealth via investments. Individuals who can save a hefty sum for retirement may be able to delay claiming Social Security benefits, which can grow their monthly payout up to 8% per year, beginning at age 62 and continuing until age 70 for retired workers.

There can be a sizable advantage -- both in terms of average monthly benefit and lifetime income collected from Social Security -- in waiting to collect.

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