Understanding the Cost-of-Living Adjustment (COLA)
The primary way seniors on Social Security receive extra money is through the annual Cost-of-Living Adjustment, or COLA. This increase is intended to help benefits keep up with rising costs and inflation. The Social Security Administration (SSA) announces the COLA in October, with the new, higher benefits taking effect in January of the following year. The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter.
The 2025 and Projected 2026 COLA
For 2025, the COLA was 2.5%. For the average retired worker, this meant an increase of about $49 per month. Projections for 2026 suggest a COLA between 2.7% and 2.8%.
Temporary "Extra" Payments
Sometimes, seniors may receive what appears to be an extra check due to timing issues. These occur when a payment date, particularly for SSI recipients whose payments are normally on the first of the month, falls on a weekend or federal holiday. The payment is then made on the last business day of the preceding month, potentially resulting in two payments in one calendar month. However, this is an advance on the next payment cycle, not an additional amount.
Targeted Legislation and Special Circumstances
Specific legislative actions can also lead to one-time or ongoing extra payments for certain beneficiaries. In early 2025, millions of beneficiaries received expedited retroactive payments from the Social Security Administration. This was due to the elimination of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) for certain workers with pensions from non-covered employment. These beneficiaries often received a lump-sum retroactive payment and a permanent increase in monthly benefits.
Comparison: Types of Social Security Payments
| Payment Type | Frequency | Reason for Payment | Who Is Eligible? |
|---|---|---|---|
| Cost-of-Living Adjustment (COLA) | Annually | Offset inflation and maintain purchasing power | Most Social Security and SSI beneficiaries |
| Temporary Payment Schedule Quirks | Occasionally | Payment date falls on a weekend or holiday | SSI recipients and those receiving both SSI and Social Security |
| Retroactive Payments (e.g., WEP/GPO) | One-time | Specific legal changes impacting benefits | Certain workers with non-covered pensions (e.g., specific teachers, firefighters, police) |
| Supplemental Security Income (SSI) | Monthly | Low income and limited resources | Low-income seniors 65+ or those with a qualifying disability |
| State Supplements | Monthly | Supplement federal SSI payments | Eligible SSI recipients in certain states |
Additional Assistance Programs for Seniors
Beyond Social Security, seniors can access additional money through various assistance programs. Supplemental Security Income (SSI) provides monthly payments to eligible low-income seniors, blind, or disabled individuals, with some states adding supplementary payments. Other programs can help with energy costs, food assistance, and Medicare costs.
Conclusion
Seniors on Social Security can receive extra money through the annual Cost-of-Living Adjustment (COLA), including a 2.5% increase for 2025 and a projected 2.7–2.8% for 2026. Other extra payments may include temporary payment adjustments for SSI recipients due to timing issues or targeted payments resulting from legislative changes, such as the 2025 retroactive payments related to WEP/GPO reform. For accurate information about Social Security, seniors can access a My Social Security account.
