The Social Security Administration has revealed a 2.8% cost-of-living adjustment (COLA) set to take effect in January 2026. While this increase translates to an average addition of $56 monthly to retirement benefits, it may disappoint some recipients in Wisconsin, where over 1.3 million residents rely on Social Security.
This year’s adjustment is an improvement over the 2.5% increase from 2025, yet it falls short of the average 3.1% COLA seen over the past decade, as well as below the current inflation rate of 3%. Additionally, many seniors might find that rising Medicare premiums could offset these benefits.
Beneficiaries will be informed of their specific payment dates in December 2025. Social Security payments, issued throughout the month based on birth dates, will be affected by the COLA. For Supplemental Security Income (SSI) recipients, the initial payment reflecting the new adjustment will be made on December 31, 2025, due to the fact that January 1 falls on a holiday.
Several other changes are coming for Social Security recipients in 2026. Most notably, the full retirement age will rise, requiring individuals to wait longer to obtain full benefits if they choose to file before reaching that age. For those born in 1960 and later, full retirement age will be 67 years.
Additionally, the requirements for earning work credits will also see an uptick. In 2026, individuals will need to earn $1,890 per credit, an increase from $1,810 in 2025, meaning a total of $7,560 is required to qualify for the maximum four credits in a year. This adjustment will particularly impact part-time workers and caregivers.
In a significant shift, paper checks for Social Security benefits will be completely phased out by 2026. An executive order signed earlier mandates that beneficiaries switch to electronic payments via direct deposit or a Direct Express Debit Mastercard.
Finally, Social Security taxes will also come into play with an increase in the wage cap from $176,100 to $184,500 in 2026. This means employees and employers will pay 6.2% on earnings up to the new cap, placing higher-income earners at a tax threshold similar to those around the cap.
As 2025 draws to a close, Social Security checks will continue to be distributed on Wednesdays throughout the year based on recipients’ birthdays, with SSI checks remaining consistent on the same day for all beneficiaries. Further details about the payment schedule for 2025 will ensure recipients remain informed as they look forward to the adjustments coming in 2026.
