NEW YORK, January 1, 2026, 09:46 ET
- Social Security and SSI benefits are rising 2.8% in 2026, lifting the average retired worker benefit to an estimated $2,071 a month.
- January deposits follow the SSA’s staggered schedule, with some dates shifted by holidays and weekends.
- Medicare Part B premiums rise to $202.90 a month, and a new $6,000 senior tax deduction begins with 2025 tax returns.
Millions of Americans are starting 2026 with higher Social Security checks after a 2.8% cost-of-living adjustment began with January payments, the Social Security Administration said ( SSA).
The adjustment covers about 75 million people receiving retirement, disability and Supplemental Security Income, or SSI, benefits, and SSI deposits began on Dec. 31 because Jan. 1 is a federal holiday.
The timing matters because retirees track deposits closely around New Year’s Day, when closures can move payment dates.
A consumer guide published this week laid out the January schedule and noted that Medicare premiums and tax rules will shape how much of the raise people feel ( Axios).
Many beneficiaries have health premiums withheld from their monthly checks.
Those costs rise again in 2026, trimming take-home gains for some households, especially higher-income retirees who pay surcharges.
The annual boost, known as the COLA, is tied to inflation as measured by the CPI-W, a government index that tracks prices paid by urban wage earners.
The SSA estimates the average monthly benefit for all retired workers will rise to $2,071 from $2,015, while an aged couple receiving benefits will average $3,208, up from $3,120 ( SSA fact sheet).
January dates depend on when a person began receiving benefits and, for most retirees, their birth date.
Social Security payments for people who started benefits before May 1997, or who receive both Social Security and SSI, are due on Jan. 2 because Jan. 3 falls on a weekend ( SSA payment calendar).
Most other beneficiaries will be paid on Jan. 14, Jan. 21 or Jan. 28, corresponding to birthdays on the 1st–10th, 11th–20th or 21st–31st, the agency’s schedule shows.
SSI recipients will receive their February payment on Jan. 30 because Feb. 1 falls on a weekend.
SSI is a separate program for people with low income and limited resources who are aged, blind or disabled.
Unlike Social Security retirement, SSI is normally paid on the first day of the month, or the prior business day if the first falls on a weekend or holiday.
The standard monthly premium for Medicare Part B — which covers doctor visits and outpatient care — will be $202.90 in 2026, up $17.90 from 2025, and the annual deductible will rise to $283, the Centers for Medicare & Medicaid Services said ( CMS).
CMS said the increase is driven mainly by projected price changes and higher use of services.
Tax season brings another change aimed at older Americans.
A new $6,000 federal deduction for taxpayers age 65 and older applies for 2025 through 2028 and begins phasing out above $75,000 in modified adjusted gross income, or MAGI — a tax measure used for income-based phaseouts — for individuals and $150,000 for joint filers, the Internal Revenue Service said (IRS).
The agency that runs Social Security said the COLA is designed to keep pace with rising living costs rather than deliver a one-time windfall.
“Social Security is a promise kept,” Commissioner Frank J. Bisignano said when the SSA announced the 2026 adjustment ( SSA press release).
Other Social Security thresholds moved with wages.
The maximum earnings subject to the Social Security payroll tax rises to $184,500 in 2026, and the retirement earnings test — rules that temporarily withhold benefits for some people who claim early and keep working — increases to $24,480 for people below full retirement age.
In Medicare’s prescription-drug program, known as Part D, out-of-pocket spending on covered drugs is capped at $2,100 in 2026 under federal law, Medicare said.
Beneficiaries can also opt into a “prescription payment plan” that spreads bills across the year but does not reduce total costs ( Medicare).
Separately, negotiated prices for the first group of 10 high-cost Part D drugs take effect on Jan. 1, 2026 under the Medicare Drug Price Negotiation Program, CMS said.
The agency estimated the negotiated prices would save Part D enrollees about $1.5 billion in 2026 under the standard benefit design ( CMS fact sheet).
CMS also issued updated 2026 standards used in some Medicaid eligibility and Medicare Savings Program determinations — programs that can help low-income Medicare beneficiaries with premiums and cost-sharing — in a Dec. 9 informational bulletin ( Medicaid).
