Imagine a financial lifeline that millions of Americans rely on, one that keeps them above the poverty line and helps them make ends meet in retirement. Now, picture that lifeline getting a significant boost—a boost so substantial that it’s being called historic. But here’s where it gets controversial: while everyone will benefit, retirees in five specific states are set to see their checks rise even higher than the national average. Why? And what does this mean for the future of Social Security?
For the vast majority of Social Security’s 53 million retired workers, their monthly payment isn’t just a number—it’s a necessity. According to the Center on Budget and Policy Priorities, Social Security lifted 22 million people out of poverty in 2023, with 16.3 million of those being adults aged 65 and older. Gallup surveys spanning 24 years (2002-2025) further underscore this reliance, with 80% to 90% of retirees stating they need their Social Security income to survive. That’s why the annual cost-of-living adjustment (COLA) announcement, usually made between October 10th and 15th, is such a highly anticipated event. This year, it was delayed to October 24th due to the federal government shutdown, adding an extra layer of suspense.
While all Social Security beneficiaries—retired workers, disabled workers, and survivors—will receive a historic raise in 2026, retirees in five states will see their benefits climb even higher than the national average. And this is the part most people miss: the reasons behind this disparity are deeply tied to earnings history and regional economic factors.
On October 24th, the Social Security Administration (SSA) announced a 2.8% COLA for 2026. At first glance, 2.8% might not seem like much, especially compared to the 8.7% increase in 2023—the largest since 1982. However, this adjustment is historic for a different reason: it marks the first time this century that recipients will receive at least a 2.5% raise for five consecutive years. The last time this happened was from 1988 to 1997, with annual increases ranging from 2.6% to 5.4%.
According to SSA projections, the 2.8% COLA will increase the average monthly benefit for retired workers by $56, bringing it to $2,071. This follows a milestone in May 2025, when the average monthly payout surpassed $2,000 for the first time in the program’s history. Disabled workers will also see their average monthly check rise by $44, from $1,586 to $1,630.
While all 70 million traditional Social Security recipients will benefit from this raise, retirees in five states will see a larger nominal increase. These states are Connecticut, New Jersey, New Hampshire, Delaware, and Maryland. Here’s how their average monthly benefits are expected to change:
- Connecticut: $60.66 increase to $2,227.05
- New Jersey: $60.57 increase to $2,223.74
- New Hampshire: $60.11 increase to $2,206.90
- Delaware: $59.97 increase to $2,201.81
- Maryland: $58.96 increase to $2,164.77
But why these states? The primary reason lies in their residents’ earnings history. When calculating retirement benefits, the SSA considers four key factors: work history, earnings history, full retirement age, and claiming age. The first two are directly tied to how much and how long someone worked. Since the SSA bases benefits on the highest 35 years of inflation-adjusted earnings, individuals with higher average wages—like those in states with higher median incomes—tend to receive larger benefits.
Take median household income by state, for example. New Hampshire, Maryland, New Jersey, and Connecticut rank among the top states in this category, according to 2024 U.S. Census Bureau data. Higher incomes often translate to higher Social Security benefits. But here’s a thought-provoking question: does this disparity highlight a broader inequality in the system, or is it simply a reflection of regional economic realities?
Another factor to consider is retirement savings. Higher median incomes in these states may allow workers to save more or invest wisely, potentially delaying their Social Security claims. Delaying benefits can increase monthly payouts by up to 8% per year from age 62 to 70, providing a significant advantage in both monthly and lifetime income.
As we look ahead to 2026, this historic COLA serves as a reminder of Social Security’s critical role in millions of lives. Yet, it also raises questions about fairness and equity in the system. What do you think? Is this disparity justified, or does it reveal deeper issues in how benefits are calculated? Share your thoughts in the comments—let’s spark a conversation that could shape the future of Social Security.