New Calendar Splits Raise Dates for Americans

Millions of Americans are about to receive a long-awaited cost-of-living adjustment (COLA) to their Social Security benefits. However, a new government calendar will divide U.S. recipients into two groups. While a small group will receive their increased checks on December 31st, most will have to wait until January. This division is due to the Social Security Administration's calendar, which reschedules payments, especially when payment dates fall on weekends or holidays.

Last month, the SSA announced a 2.8% COLA for 2026, slightly higher than the 2.5% increase in 2025. This adjustment is intended to help retirees and Supplemental Security Income (SSI) beneficiaries cope with rising costs of essential items like healthcare, housing, and groceries. Although the 2.8% COLA is based on the inflation rate in 2025, recipients will receive their pay raise in 2026. While some will receive the increase in December, the payment is for 2026.

People Who Will Receive a Pay Increase on December 31st

A small group of SSI benefit recipients will receive their payment on December 31st because January 1st is a federal holiday. According to the SSA, payments must be legally issued on the closest business day.

This early payment applies only to SSI beneficiaries because SSI checks are typically sent on the 1st of each month. If that date falls on a weekend or holiday, the payment date is shifted to the preceding business day. The same applies to January checks.

Most people will wait until January.

Retirement, Survivor, and Disability Insurance beneficiaries will receive their increased checks in January 2026. The payment date depends on the SSA's standard Wednesday payment schedule:

Birthdays from the 1st to the 10th: Payment on the second Wednesday.

Birthdays from the 11th to the 20th: Payment on the third Wednesday.

Birthdays from the 21st to the 31st: Payment on the fourth Wednesday.

This means that most recipients will have to wait until mid-January or late January, depending on their birth date.

What the 2.8% COLA Really Means

With the 2.8% COLA adjustment, the average beneficiary earning less than $2,008 per month will receive an extra $56 per month starting in January. While this increase seems small, it will provide some much-needed financial relief.

SSI beneficiaries will also see an increase in their maximum payments:

Individuals: From $967 to $994 per month. Couples: From $1,450 to $1,491 per month.

These numbers will depend on several factors, such as income level and disability status.

Advocacy supporters say this increase is still small.

Despite the average increase of about $56, several advocacy groups say this adjustment doesn't reflect the true costs of aging. Shortly after the SSA announced its 2026 COLA, Shannon Benton, executive director of The Senior Citizens League (TSCL), wrote, "The 2026 COLA will be detrimental to senior citizens. Every year, they warn that Social Security's modest increases won't be enough, and the Census Bureau estimates that nearly 10 percent of retirement-age Americans live in poverty."

According to TSCL, the formula used to calculate COLAs, the Consumer Price Index for Urban Workers and Clerical Employees (CPI-W), should be changed because it doesn't account for retirees' true expenses. The group recommended adopting the Consumer Price Index for the Elderly (CPI-E) or creating a better system that guarantees at least a 3% COLA when inflation metrics fall short.

Result

Social Security benefits will increase by 2.8%, but the dates of benefit receipt will divide recipients into two categories. Those receiving SSI benefits will receive the increase on December 31st, while most recipients of other Social Security benefits will receive the increase based on their birthday in January 2026.