The highly anticipated Friday, October 24th has finally come and gone and with it came the official Cost of Living Adjustment (COLA) announcement. The COLA announcement had initially been scheduled for October 15th, however, as a result of the federal government shutdown, the release of the September CPI had been delayed, which then delayed the COLA announcement.
The September CPI has since been released following a special concession from the Bureau of Labor Statistics and the Social Security Administration (SSA) has officially confirmed a 2.8% increase to all benefits for 2026. Due to the manner in which the SSA has structured its benefit payment schedule, some beneficiaries may only see their increased benefit amounts at the very end of January next year. Here is what you need to know.
2.8% COLA increase officially confirmed
The COLA is essentially a measure of year over year inflation. If inflation has increased from one year to the next, the SSA will adjust its benefits proportionately in the upcoming year. The SSA uses the CPI-W for July, August, and September and measures it year over year in order to determine the COLA each year. This process has been automatically implemented since 1975. Prior to that, any adjustments for inflation were done at random and required approval from Congress.
The 2.8% COLA bump for 2026 is marginally higher than the 2.5% seniors saw in 2025, however, it is quite an average increase from a historical standpoint. Relative to the average benefit check of around $2,008, the COLA increase should translate to around $56 more for retirees as of January.
The Medicare Part B premium is also projected to increase by around 11.6% in 2026. This figure has not yet been officially confirmed, however, an increase is more than likely. An 11.6% increase to the Part B premium will bring the cost up from $185 to around $206.50, making it a rather significant cost hike. The higher cost of the premium would also eat away at a fraction of the COLA increase since the Part B is deducted automatically from Social Security benefits.
Who will receive the COLA increase first?
For regular Social Security benefits, the SSA has structured its schedule so that payments are rolled out on Wednesdays throughout the month. Benefits are paid on the second, third, and fourth Wednesday of each month, with the beneficiary’s brith date determining the exact date on which they will receive payment.
The payment schedule for January 2026 is structured as follows:
- Second Wednesday, January 14th – benefit payment for recipients with birth dates from the 1st to the 10th of their respective birth month
- Third Wednesday, January 21st – benefit payment for recipients with birth dates from the 11th to the 20th of their respective birth month
- Fourth Wednesday, January 28th – benefit payment for recipients with birth dates from the 21st to the 31st of their respective birth month
Since the recipient’s birth date determines when during the month they will receive their benefit, those born in the last ten days of their birth month will only see their increased benefit check at the end of January once the payment is made on the 28th.
SSI increase starts in December
SSI benefits are generally paid on the first of their month. If, however, the first falls on a holiday or weekend, the SSA will push up the payment to the last working day of the previous month. By paying the SSI earlier, beneficiaries are able to have their benefit for the month as the month begins rather than it being delayed to the next working day of the month.
Since January 1st is a holiday, the January 2026 SSI benefit will be paid to recipients on December 31st, 2025. This December 31st payment will include the COLA increase due to it being the SSI for January.