Each year, the Social Security Administration (SSA) calculates a cost-of-living adjustment (COLA) designed to help beneficiaries keep up with inflation. For the 2026 benefit year, the COLA was set at 2.8 %, and understanding how it applies starting in December is essential for anyone who receives Social Security or Supplemental Security Income (SSI).
This article explains how the December application of the COLA works, who sees changes when, how much the increase is likely to be, and what additional factors to consider.
How the COLA Works and When It Applies
The SSA uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to determine the COLA. If the average CPI-W for July-September of the current year rises compared to the same period the prior year, the benefit amount for next year is increased accordingly.
For 2026, the COLA is 2.8 %, based on a year-over-year increase in the CPI-W.
Here’s how the timing works:
- For most Social Security retirement, disability and survivor benefits: the COLA applies to the payment for January 2026 (which beneficiaries receive in January).
- For SSI benefits, the increased amount takes effect with the payment made on December 31, 2025, because January 1 is a holiday and SSI’s usual payment date would be January 1.
- Notices about the new benefit amount are mailed starting in early December. If you have a my Social Security account, you may view your personalized COLA notice online.
What the 2.8 % Increase Means in Dollar Terms
While the percentage is fixed, your actual dollar increase depends on your current benefit amount. Some key figures:
- The average retiree benefit is projected to increase by about $56 per month in 2026.
- The federal maximum SSI monthly payment for an individual will increase to $994 in 2026.
- Even though 2.8 % seems modest, keep in mind that some costs for older Americans—healthcare, utilities—have been rising faster than general inflation.
Why “For December” Matters
When you see references to “COLA for December,” here’s what they mean:
- Because SSI is paid on the first of the month (or the previous business day if the first is a holiday), the increased SSI payment for January 2026 is actually issued on Dec 31, 2025. So December includes the first increased payment for SSI.
- For Social Security retirement/disability benefits, December payments are still based on the old benefit amount; the new benefit (with the 2.8 % increase) begins with the January 2026 payment.
- Beneficiaries receive their COLA notices in December, so it’s the month when you learn your new rate—even if the increased payment arrives in January.
Overview Table
| Benefit Type | COLA % for 2026 | Effective Payment Date | December Impact | Notes |
|---|---|---|---|---|
| Social Security retirement/disability/survivor | 2.8 % | January 2026 payment | December payment still old rate | New benefit begins in Jan |
| SSI (Supplemental Security Income) | 2.8 % | Payment dated Dec 31 2025 | December includes new rate for Jan | Due to holiday scheduling |
| COLA notice mailed/viewable | — | Early December 2025 | You receive notice in December | Requires mySocialSecurity or mail |
| Average dollar increase (retiree) | 2.8 % | Jan 2026 benefit | December no change for non-SSI | Extra ~$56/month typical |
| Costs offset by premiums, inflation | — | Ongoing | DEC notice may reflect net effect | Healthcare, utilities rising |
| Taxable maximum earnings (Social Security) | — | 2026 year | December payment based on 2025 rate | Limits also increase |
Additional Considerations
Interaction with Medicare and Other Deductions
Even though your benefit amount increases, deductions like Medicare Part B premiums may increase too—which could reduce the net benefit increase. Experts note that healthcare cost trends often outpace the COLA.
Long-Term Outlook
The SSA projects that while COLAs help preserve benefit value, the overall trust-fund depletion risk remains a concern. Hence, monitoring both benefit adjustments and any policy changes is wise.
What You Should Do
- Log into your mySocialSecurity account to view your personalized COLA notice in early December.
- Compare your new benefit amount (from the notice) to your current amount and consider any deductions you expect.
- Budget ahead: the increased benefit starts in January (or December 31 for SSI), so plan accordingly.
- Keep track of any policy proposals or changes that may affect your benefit.
Key Takeaways
- The COLA for 2026 is 2.8 %, announced by the SSA.
- SSI recipients receive the increased payment on Dec 31, 2025; Social Security retirement/disability beneficiaries will see the increase in January 2026.
- The average retiree benefit increase is about $56 per month.
- December is the month you get your COLA notice and for some (SSI) the first payment at the increased rate.
- Despite the percentage increase, real-world inflation in medical and utility costs may blunt the net benefit.
FAQs
1. When does the 2026 Social Security COLA take effect?
For most beneficiaries it takes effect with the January 2026 payment; for SSI recipients the increase is included in the December 31, 2025 payment.
2. How much is the 2026 COLA increase?
The increase is 2.8 % for both Social Security and SSI in 2026, adding about $56 a month on average for Social Security beneficiaries.
3. Why am I getting my COLA notice in December?
Because December is when the SSA mails or posts the personalized COLA notice for the upcoming benefit amount—even if your increased payment arrives in January.