Railroad retirement benefits will rise in 2026 thanks to higher earnings limits and a cost-of-living adjustment (COLA).

Beginning in January 2026, most railroad retirement annuities will increase based on a 2.8% rise in the Consumer Price Index. The tier I portion of an annuity will increase by 2.8%, and the tier II portion by 0.9%. As a result, the average employee annuity will increase $80 to $3,636 per month, and the average combined employee-and-spouse annuity will rise $112 to $5,249. The average widow(er)’s annuity will increase $50 to $2,109.

Earnings limits are also increasing. In 2026, railroad retirement annuitants under full retirement age can earn up to $24,480 (before a $1-for-$2 deduction applies), up from $23,400 in 2025. For those reaching full retirement age during 2026, the limit for months before that age is $65,160 (up from $62,160), with a $1-for-$3 deduction above that amount.

The monthly earnings cap for disability annuitants will rise to $1,320, and retirees working for their last pre-retirement non-railroad employer remain subject to a $1-for-$2 deduction up to 50% of their tier II and supplemental annuities.

As always, no annuity is payable for any month a retiree works for a railroad or a railroad union. Notices detailing new payment amounts will be mailed by the Railroad Retirement Board in late December.

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