A Social Security payment is landing early this week, and for thousands of beneficiaries in Michigan, Christmas Eve will come with a federal deposit attached. The timing matters because it closes out the 2025 payment calendar and sets the stage for changes that will start hitting accounts in just a few days.
Social Security is not just sending money this week. It is closing a cycle. December’s final payments arrive before a cost-of-living adjustment kicks in for 2026, and that adjustment will permanently reshape monthly checks, earnings limits, and tax thresholds going forward.
Social Security: Christmas Eve payments and what comes next
Beneficiaries born between the 21st and 31st of any month are scheduled to receive their Social Security payment on Wednesday, December 24. This applies nationwide, but Michigan recipients are among those most closely watching the date due to banking cutoffs tied to the holiday. This payment is the last one calculated under 2025 rules. Starting in January, monthly amounts will reflect the new cost-of-living adjustment, known as COLA, which has been set at 2.8% for 2026.
On average, that increase translates into about $56 more per month per recipient. The exact figure depends on each person’s benefit level, but the adjustment applies across retirement, survivor, and disability payments.
How Social Security schedules its monthly payments
Social Security does not pay everyone on the same day, and that often causes confusion, especially around holidays. Payments are issued on Wednesdays, based on the beneficiary’s date of birth. Those born between the 1st and the 10th are typically paid on the second Wednesday of the month. Birthdays from the 11th to the 20th fall on the third Wednesday. Anyone born after the 20th is paid on the fourth Wednesday, which this month lands on December 24.
When a payment date falls on a federal holiday or weekend, funds are usually released earlier. That is why many recipients will see the deposit arrive before Christmas Day itself.
The end of paper checks is no longer optional
Alongside payment timing and benefit amounts, Social Security has been quietly enforcing another major shift. Paper checks are being phased out, and beneficiaries are now required to receive payments either by direct deposit or through the Direct Express debit card. For long-time recipients, this has meant updating banking information or adapting to a prepaid card system. While the transition has been gradual, 2026 marks a point where paper-based payments are effectively gone.
This change does not alter benefit amounts, but it does affect how quickly funds are available and how recipients access their money, particularly during holidays.
COLA changes that take effect in 2026
The 2.8% COLA does more than raise monthly checks. It also resets several thresholds tied to work and taxation. These updates apply automatically starting with January 2026 payments.
- The maximum earnings subject to Social Security payroll tax increases to $184,500
- Workers under full retirement age can earn up to $24,480 before benefits are reduced, with $1 withheld for every $2 earned above that limit
- Workers reaching full retirement age in 2026 can earn up to $65,160 before temporary reductions apply
- There is no earnings limit for individuals who are at full retirement age for the entire year
These figures matter most to people who continue working while collecting benefits, a group that has grown steadily in recent years.
What beneficiaries should watch after December 24
Once the Christmas Eve payment is received, the next deposit will reflect the new COLA-adjusted amount. That first higher check is often when recipients notice changes, both positive and unexpected, especially if deductions or Medicare premiums shift at the same time. Beneficiaries are encouraged to review their January payment carefully, confirm that direct deposit information is current, and be aware that earnings limits reset with the new year.
Social Security rarely changes overnight, but this week marks a clear dividing line. One system closes with December’s payment, and another begins in January, with higher checks, stricter thresholds, and no paper trail left behind.