Being able to rely on a fixed income such as Social Security during the more vulnerable phases of your life such as retirement is be a great source of relief for tens of millions of seniors across the country each year. When things like inflation factor in, however, maintaining your budget on a fixed income can become somewhat tough to navigate. In order to ensure the monthly benefit check retains its buying power in the face of inflation, the Social Security Administration (SSA) implements a Cost of Living Adjustment (COLA) annually. The COLA is a measure of inflation from one year to the next, and if there is an increase, all benefits will be adjusted proportionately.
The COLA is determined by measuring the CPI-W for third quarter of the current year against the third quarter CPI-W of the previous year. Since the COLA is measured using third quarter CPI data, the SSA is able to determine and announce the upcoming year’s COLA by October. This year, the official announcement was delayed by several days due to the federal government shutdown. On October 24th, however, the SSA was finally able to announce the 2026 COLA of 2.8%. This 2.8% increase will go into effect with the January 2026 round of benefits. Due to the set up of the SSA’s payment schedule, some beneficiaries will technically receive their 2026 COLA increase in 2025, while others will have to wait until the end of January to receive theirs. Here is what you need to know.
Who gets a COLA increase and when?
COLA increases are implemented to all benefits issued by the SSA each year, including the SSI benefit. There are currently around 75 million beneficiaries in the Social Security program, with around 7.4 million of these individuals receiving the Supplemental Security Income (SSI). Due to this high volume of recipients, the SSA spreads out its payment dates across various points throughout the month, thereby leaving less room for errors or delays. The regular Social Security benefit, which includes retiree, survivor, and disability benefits, follows its own independent payment schedule, while the Supplemental Security Income follows a different payment structure.
SSI benefits are generally issued on the first of the month, however, when the first falls on a weekend or a holiday, the SSA will push up the payment to the last working day of the previous month. Since January 1st is considered a holiday, the January 2026 SSI benefit, which includes the 28% COLA bump, will be issued to recipients on December 31st, 2025. So while this payment is the January SSI, this cohort of beneficiaries will technically be receiving their 2026 COLA increase in 2025.
For Social Security recipients, benefits are issued on Wednesdays throughout the month relative to your date of birth. As a result, some beneficiaries will receive their benefit with a COLA increase in the second week of January while others will have to wait until the last week of the month. Payments for the January 2026 Social Security benefit will roll out as follows:
- Jan. 14th — birthdays from the 1st to the 10th
- Jan. 21st — birthdays from the 11th to the 20th
- Jan. 28th — birthdays from the 21st to the 31st
How much will seniors receive from the 2026 COLA?
The average retiree check currently totals to around $2,008, which means that the average COLA increase will add around $56 to the monthly benefit check. Social Security benefits are determined largely in relation to the claimant’s lifetime earnings and as such, some recipients will receive a larger increase while other will receive a smaller raise. It is also worth noting that it has now been confirmed that Medicare Part B premiums will be increasing by 9.7% in 2026. This premium hike will bring the cost of the Part B premium up from $185 to $202.90, which will effectively eat away at a portion of the COLA raise.
“Especially since the pandemic, rising Part B premiums have been ruining seniors’ finances. The data shows that many older Americans already enjoy a lower standard of living than younger citizens, making a fulfilling retirement feel like a dream that’s further and further away,” TSCL executive director Shannon Benton noted.