Millions of Americans who rely on Social Security benefits are keeping a close eye on the arrival of the annual Cost of Living Adjustment (COLA). However, not everyone will see the updated amount at the same time. Due to the federal payment schedule, beneficiaries are divided into two groups—one receiving the increase at the end of December and the rest in January.
This timing difference is a direct result of adjustments made when regularly scheduled payments fall on weekends or federal holidays.
Understanding the 2.8% COLA Increase for 2026
Why Payments Are Increasing
Earlier this year, the Social Security Administration (SSA) confirmed a 2.8% COLA increase for 2026. This raise is slightly higher than the previous year’s 2.5% boost and is intended to help beneficiaries handle ongoing inflation and rising prices for essentials like:
- Healthcare
- Groceries
- Housing
Although the adjustment is calculated using 2025 inflation data, the increase officially applies to 2026 benefits.
Who Receives the Higher Benefits on December 31?
A small segment of beneficiaries will see their higher payments before the new year. This exception is tied to how the SSA processes payments that normally fall on a holiday.
SSI Recipients Get Paid Early
Those who receive Supplemental Security Income (SSI) will get their updated benefits on 31 December 2025, because the usual payment date—January 1—is a federal holiday.
According to the SSA, nearly 7.5 million SSI beneficiaries will receive their increased payments on this day. Some individuals who collect both Social Security and SSI may also see the adjusted amount early.
Most Beneficiaries Will Receive the Increase in January
Regular Wednesday Payment Schedule
Retirement, disability, and survivor benefit recipients will receive their increased payments in January 2026, following the SSA’s standard Wednesday schedule:
- Birthdates 1st–10th: Paid on the second Wednesday
- Birthdates 11th–20th: Paid on the third Wednesday
- Birthdates 21st–31st: Paid on the fourth Wednesday
Because of this structure, many recipients will not see their higher benefit until mid- to late-January, depending on their date of birth.
The arrival of the 2.8% Social Security COLA will not be simultaneous for everyone. SSI beneficiaries will receive the increased amount on December 31, while most retirement, disability, and survivor beneficiaries will have to wait until their scheduled Wednesday payout in January 2026. Although timing varies, the adjustment is designed to help all recipients manage rising living costs in the year ahead.
FAQs
Why do some beneficiaries receive their COLA increase in December?
Payments scheduled for January 1—which is a federal holiday—are moved to the nearest business day, resulting in a December 31 deposit for SSI recipients.
When will retirees receive their COLA-adjusted payment?
Retirees will begin receiving their increased payments in January 2026, based on the SSA’s Wednesday distribution cycle tied to their birthdate.
Does the 2.8% increase apply to all Social Security beneficiaries?
Yes, the COLA applies to all beneficiaries, including retirees, SSI recipients, survivors, and those receiving disability insurance.