Final Month Before the COLA Raise — What to Expect From Your December Social Security Check
As the Final Month Before the COLA Raise begins, millions of Americans receiving Social Security and Supplemental Security Income (SSI) benefits are preparing for one of the most significant financial transitions of the year.
December marks the last round of payments under the 2025 benefit structure, while also delivering key updates, early SSI deposits, and official notices outlining the 2026 cost-of-living adjustment (COLA). These changes will influence household budgets for months to come.
Final Month Before the COLA Raise
| Key Fact | Details |
|---|---|
| 2026 COLA Increase | 2.8% increase for all Social Security and SSI beneficiaries |
| First COLA-adjusted payment | SSI: December 31, 2025; Social Security: January 2026 |
| Average Increase | Approx. +$56 per month added to retirement checks |
| December Quirk | Two SSI payments in December due to Jan. 1 federal holiday |
| COLA Notices | Mailed and posted online early December |
Why December Is the Critical Final Month Before the COLA Raise
The Final Month Before the COLA Raise serves as the financial bridge between two benefit cycles. December payments operate under the current year’s rates, while January’s checks reflect the COLA increase. Because inflation continues to affect housing, food, transportation, and medicine, many beneficiaries depend heavily on the timing and accuracy of these year-end payments.
The Social Security Administration’s (SSA) announcement of a 2.8% COLA for 2026 reflects moderate inflation trends. While this increase is smaller than inflation spikes seen earlier in the decade, it remains essential to maintaining purchasing power for the nation’s 72 million beneficiaries.
December 2025 Social Security Payment Schedule
Regular Retirement and Disability Benefits
Payments follow SSA’s standard Wednesday-based system:
- December 3: Payments for those receiving benefits prior to May 1997
- December 11: Birthdays on the 1st–10th
- December 18: Birthdays on the 11th–20th
- December 24: Birthdays on the 21st–31st
These payments do not include COLA. They are the last 2025 benefit-level checks.
SSI Beneficiaries Receive Two Payments
Because January 1, 2026 is a federal holiday, the January SSI payment will be deposited on December 31, 2025. Therefore, SSI recipients receive:
- December 1: Regular December SSI payment
- December 31: Early January 2026 SSI payment with COLA increase
This creates the illusion of a “bonus” but is simply an early deposit.
Understanding the 2026 COLA Increase
What a 2.8% Adjustment Means
The COLA increase raises the average monthly retirement check by roughly $56, offering modest relief amid elevated living costs. Disabled workers, surviving spouses, and SSI beneficiaries will see proportional increases.
Why COLA Matters More Today
Older Americans disproportionately spend on categories experiencing above-average inflation—such as:
- Prescription drugs
- Medical procedures
- Housing and utilities
- Transportation services
Analysts warn that even though inflation has cooled, these categories continue to rise faster than general consumer prices.
Medicare Part B May Reduce the Net Increase
Many retirees will see part of their COLA increase absorbed by rising Medicare Part B premiums. SSA will detail Medicare deductions in December’s COLA notices.
How the COLA Raise Impacts Different Beneficiary Groups
Retirees
Retirees will see their increased Social Security check beginning in January. For the average beneficiary, the rise helps offset rising rents, groceries, and healthcare costs—although critics argue the adjustment still trails real-world inflation for seniors.
Disabled Workers
Disabled beneficiaries often use Social Security Disability Insurance (SSDI) for essential medical care and daily living support. A 2.8% increase can modestly improve stability, especially for those managing fixed medical expenses.
Survivors and Widows
Widows and surviving spouses receive benefits based on work histories of deceased partners. For many, COLA adjustments are vital in balancing predictable income with unpredictable expenses, particularly medical bills.
SSI Recipients
SSI beneficiaries—one of the lowest-income groups in the country—are the first to see COLA benefits through the early January payment on December 31.
Additional December Considerations for Beneficiaries
Check for Updated Tax Withholding
Some recipients may see higher taxable income in 2026 due to increased benefits. This may create unexpected federal tax liabilities. Adjusting voluntary withholding now can prevent issues later.
Review Bank Details to Avoid Delayed Payments
Incorrect or outdated bank information can delay deposits. SSA encourages beneficiaries to verify details in their “my Social Security” account before mid-December.
Monitor for Scams and Fraud
SSA warns that December is high season for fraudulent calls involving:
- Threats to suspend benefits
- Requests for personal information
- Fake COLA-related “processing fees”
SSA stresses it never calls or texts beneficiaries demanding money or sensitive data.
Economic Context Behind the 2026 COLA Raise
How SSA Calculates COLA
SSA bases COLA on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If prices year-over-year rise, COLA increases accordingly.
Some advocacy groups argue this measure underestimates senior living expenses, advocating instead for the CPI-E, which tracks spending patterns of older Americans. Congress has not adopted this change.
Long-Term Concerns About Social Security Solvency
According to recent SSA Trustees Reports, Social Security’s trust fund faces depletion in the 2030s without legislative action. If Congress fails to act, future retirees might receive reduced benefits.
COLA increases do not accelerate insolvency but do increase program payouts.
Financial Planning Tips for December Beneficiaries
Review Your January Budget Early
Beneficiaries should evaluate whether the COLA increase covers expected 2026 expenses. Healthcare costs alone may influence how much of the COLA translates to disposable income.
Don’t Mistake the Second SSI Payment as “Extra”
Budget planners recommend treating the December 31 SSI payment solely as January’s check to avoid creating a financial shortfall the following month.
Use SSA’s Online Tools
SSA’s online portal allows users to:
- Download their COLA notice
- Review payment history
- Update contact and banking information
- Estimate future benefits
Related Links
Social Security Update: New Full Retirement Age Announced for Future Beneficiaries
A New Rebate Program Is Offering Up to $1,500 — Who Can Claim It This Year
As Americans enter the Final Month Before the COLA Raise, December’s Social Security and SSI payments provide both stability and important financial signals for the year ahead.
With early deposits, updated benefit notices, and a moderate 2.8% COLA increase taking effect, beneficiaries have a clear roadmap for planning in 2026. While rising costs and Medicare premiums pose challenges, informed preparation can help retirees manage their resources effectively.
FAQs About Final Month Before the COLA Raise
1. When will the COLA increase appear in my Social Security check?
January 2026, unless you receive SSI—those increases appear on December 31, 2025.
2. Why do SSI recipients get two payments in December?
The January payment is shifted earlier because January 1 is a federal holiday.
3. Will my Medicare premiums rise in 2026?
Most likely, yes. The exact amounts will appear in your December COLA notice.
4. Are Social Security benefits taxable?
They may be, depending on total household income.
5. How can I view my COLA notice online?
Sign in to your “my Social Security” account at SSA.gov.
