The Social Security Administration (SSA) has announced that nearly 75 million beneficiaries will experience a 2.8% increase in their monthly payments effective December 2025 (with those increased benefits payable in January 2026).
What’s Changing?
This increase is part of the SSA’s Cost-of-Living Adjustment (COLA) for 2026. It’s driven by the rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
For an average retiree, that 2.8% adjustment translates to around US $56 more each month.
The adjustment covers recipients of retirement, disability, survivors’ benefits, and the Supplemental Security Income (SSI) programme. SSI recipients will see the higher rate beginning with the December 31, 2025 payment.
How Was the 2.8% Figure Calculated?
According to the SSA, the COLA is determined by “the percentage increase … from the average for the third quarter of the last year a COLA became effective.”
In short: because the CPI-W rose sufficiently during that period, it triggered the 2.8% increase.
It’s important to note: this raise is not guaranteed every year. If the CPI-W decreases or remains flat, the COLA could be zero.
Key Points to Remember
- The increase will not show up in November payments — it applies to checks paid in January 2026 (based on earnings in December 2025).
- The 2.8% adjustment kicks in automatically under existing law — beneficiaries do not need to apply to receive it.
- Some senior advocacy groups have voiced concern that the increase falls short of covering real-world inflation, especially given rising costs in housing, medical care and food.
The upcoming 2.8% raise in Social Security benefits marks a meaningful improvement for millions of Americans as of January 2026. While it provides a needed boost for retirees, disability and survivor beneficiaries, it also highlights ongoing concerns about whether such increases keep pace with actual inflation. Staying informed about your benefit amount and any future adjustments remains important.
FAQs
When will I see the increased benefit payment?
You’ll see the higher monthly payment starting with the check issued in January 2026 (covering the December 2025 benefit period).
Do I need to apply to receive the COLA increase?
No application is required — the COLA increase is applied automatically under the law.
Could future COLA increases be smaller or nonexistent?
Yes. If the CPI-W doesn’t increase sufficiently—or falls—the SSA may set future COLA adjustments to zero or a smaller amount.