As we move through December 2025, millions of Americans are preparing their budgets for the new year. The Social Security Administration has officially confirmed a 2.8 percent Cost of Living Adjustment for 2026. This increase is designed to help beneficiaries keep up with inflation and the rising price of goods. Since today is December 16, 2025, notifications regarding these new benefit amounts are likely arriving in your mail or are viewable in your online account right now. This guide explains what the new numbers mean for your monthly finances.
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New Payment Amounts for Different Beneficiaries
The 2.8 percent increase applies to all Social Security beneficiaries, but the actual dollar amount depends on your specific benefit type. For the average retired worker, this adjustment adds approximately $56 to their monthly check. This changes the average payment from $2,008 to roughly $2,064 per month starting in January.
Other groups will also see increases. Spousal benefits are expected to rise to about $981 per month. Survivors generally receive higher amounts, and their average payment is projected to increase to $1,619. Disabled workers will see their average monthly checks grow to approximately $1,627. Supplemental Security Income recipients also have new maximums. Individuals can receive up to $994, while eligible couples will see their maximum payment rise to $1,491.
Important Payment Dates to Remember
Knowing when your money arrives is essential for paying bills. For most people receiving standard retirement or disability benefits, the higher payments will begin in January 2026 according to the standard cycle based on your birth date. You do not need to take any action to receive this increase because the update happens automatically.
There is a slight difference for those receiving Supplemental Security Income. Since January 1, 2026 is a federal holiday, the administration sends those payments early. SSI recipients should expect their first increased payment on December 31, 2025. This means you will see the extra money in your account before the new year officially starts.
Medicare Premiums Will Reduce the Net Increase
While the Social Security check is getting bigger, healthcare costs are also going up. It is vital to look at the net amount you will actually take home. Medicare Part B premiums are deducted directly from Social Security payments for most retirees. For 2026, the standard monthly premium is rising from $185 to $202.90.
This increase of $17.90 in healthcare premiums eats into the 2.8 percent cost of living boost. If you are the average retiree getting a $56 increase, your real world increase after paying for Medicare will be around $38. It is smart to calculate this now so you are not surprised when the first deposit hits your bank account.
Updated Earnings Limits and Tax Caps
The new year also brings changes for beneficiaries who continue to work. The earnings test limit has increased, which is good news for early retirees. If you claim benefits before full retirement age, you can now earn up to $24,480 in 2026 without your benefits being temporarily reduced. This is a significant jump from the previous limit of $23,400.
For those currently working and paying into the system, the taxes are changing too. The maximum amount of earnings subject to Social Security payroll taxes has climbed to $184,500. Furthermore, workers now need to earn $1,890 to acquire a single Social Security work credit.
Comparison of Benefit Changes
The following table provides a clear look at how the average monthly payments are changing from 2025 to 2026 for various groups.
| Beneficiary Group | Estimated 2025 Monthly Avg | Estimated 2026 Monthly Avg |
| Retired Worker | $2,008 | $2,064 |
| Spousal Benefits | Undisclosed | $981 |
| Survivor Benefits | Undisclosed | $1,619 |
| Disabled Worker | Undisclosed | $1,627 |
| SSI Individual (Max) | Undisclosed | $994 |
| SSI Couple (Max) | Undisclosed | $1,491 |
Quick Summary of 2026 Updates
- The official Cost of Living Adjustment for 2026 is 2.8 percent.
- Average retirees will see their checks increase by about $56 per month.
- Medicare Part B premiums are increasing to $202.90 per month.
- SSI recipients will get their January payment early on December 31, 2025.
- Early retirees can earn up to $24,480 before benefits are reduced.
