Social Security 2026 COLA 2.8%, Payments Jan 2026

The Social Security Administration announced a 2.8% cost-of-living adjustment (COLA) for 2026, effective for December 2025 benefits that will be paid in January 2026 after a Bureau of Labor Statistics report was delayed by the government shutdown. The increase is about $56 per month for the average retiree, bringing average retirement benefits to roughly $2,071 in 2026 and setting the maximum newly eligible benefit at about $4,152 for those at full retirement age. SSA calculated the COLA from the year‑over‑year change in the CPI‑W for the third quarter, which rose roughly 2.8%. Critics and economists say the CPI‑W understates seniors’ costs—particularly health care and housing—and argue that the CPI‑E would have produced substantially larger adjustments as retirees’ purchasing power has eroded over decades. Beneficiaries should expect the first COLA‑adjusted payments in January 2026 on the usual birthday‑based schedule (Jan. 14, Jan. 21 and Jan. 28 for the three birth‑date groups), a timing shift caused by the January calendar.