For more than 71 million Americans, the third week of January marks the start of the Social Security payment cycle with the annual cost-of-living adjustment (COLA) already applied. The 2.8% increase for 2026, announced by the Social Security Administration (SSA) last October, will be deposited into bank accounts according to a staggered schedule designed to avoid overloading the system.
This COLA adjustment, while lower than the average of the last decade, represents an average increase of $56 per month for retirees and is intended to offset inflation. “The cost-of-living adjustment is a vital part of how Social Security fulfills its mission,” stated SSA Commissioner Frank J. Bisignano.
The January Calendar Every Social Security Recipient Must Know
The payment schedule for January follows the established pattern. Retirement, disability, and survivor benefits will receive their funds on one of three Wednesdays, determined by their birthdate: those born between the 1st and 10th will receive their payments on January 14th.
Now, those with birthdates between the 11th and 20th, on January 21st; and those born between the 21st and 31st, on January 28th.
One specific group, however, already received their January payments: the nearly 7.5 million Supplemental Security Income (SSI) recipients received their advance payment on December 31, 2025, since January 1st is a federal holiday.
2.8%: The Number That Defines Your January Social Security Payment
The core of the increase is the maximum benefit amount. For a worker retiring at their full retirement age (which varies between 66 and 67 depending on their birth year), the monthly ceiling rises to $4,152 in 2026, following a 2.8% increase.
However, this is an optimal scenario, requiring a contribution history at the maximum limit for 35 years. The reality for the average beneficiary is different: the average payment for a retired worker is estimated to be $2,071 per month in January.
The increase comes with other technical adjustments. The income threshold for Social Security taxable income (OASDI) rises to $184,500. Additionally, the rules for those who work while receiving benefits are modified: if you are below full retirement age all year, you can earn up to $24,480 annually without penalty; in the year you reach retirement age, the limit is $65,160 for the months prior to reaching it.
Is the COLA 2026 Enough?
Experts consulted indicate that, while the Collateral Added Benefit (COLA) is automatic and linked to the Consumer Price Index (CPI-W), it rarely covers the actual increase in key costs for older adults, such as medications and healthcare.
It has been proposed that the payments must follow an index called CPI-E (E is for “elderly”), that follows price increases linked to requirements to seniors’ expenses, like medication, special food, and elder care.
The SSA recommends that all beneficiaries check their personalized COLA notification, available in the “Message Center” section of their secure “my Social Security” account, and opt for direct deposit to receive funds promptly and securely.
