November 26, 2025
The Social Security Administration announced a 2.8% COLA increase for 2026 to mitigate rising costs of healthcare, housing, and groceries.
Within the next few weeks, Social Security recipients will see changes to how they receive benefits and to the cost-of-living adjustment.
For starters, millions of recipients will soon receive a cost-of-living adjustment (COLA) to their Social Security benefits. The Social Security Administration announced a 2.8% COLA increase for 2026 to mitigate rising costs of healthcare, housing, and groceries. This is slightly higher than the 2.5% increase in 2025.
According to Grada 3, recipients who receive under $2,008 per month will see an additional $56 per month starting in January, but some will see their benefits before.
The increase comes after two-thirds of Americans (67%) say they now live paycheck-to-paycheck, according to PNC’s Financial Wellness in the Workplace Report. That’s a four percentage point increase from 2024. According to a report from eMarketer, the biggest hurdle is that wages are simply not keeping up with the cost of living.
Data from the Bureau of Labor Statistics (BLS) shows that wages in the private sector increased by 23.3% but household expenses have grown faster. Grocery prices have increased by 24.7%, housing costs by 28.2%, and energy costs by 43.3%.
People who receive Social Security benefits on the 1st of each month will see the increase on Dec. 31, and others will see the rise in mid-to-late January, depending on their birth date.
Social Security Going Digital With Very Few Exceptions
The U.S. government is transitioning from paper checks to electronic payments. According to Life Central, the federal government is switching to electronic payments because they are faster, safer, and cheaper. Recipients will receive money directly to their bank accounts or through the Direct Express® debit card. Social Security Administration officials also say going digital helps reduce fraud and saves on postage compared to checks by mail, which are costly and more susceptible to fraud.
There will be some exceptions. Senior citizens who struggle with technology, recipients in rural communities without nearby banks or poor internet, and people who don’t have bank accounts or a smartphone will continue to receive a check. Anyone who needs a paper check must request a waiver by contacting the U.S. Treasury’s payment center.
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