Social Security Changes 2026: What Retirees Need to Know

Key Social Security Changes Coming in 2026

As we approach 2026, significant adjustments to Social Security will impact millions of Americans. From increased benefits to higher earnings limits, understanding these changes is crucial for retirees and workers alike. Here’s a comprehensive breakdown of what to expect.

1. Cost-of-Living Adjustment (COLA)

The most notable change is a 2.8% cost-of-living adjustment (COLA) for Social Security benefits, effective January 2026. This increase is slightly higher than 2025’s 2.5% bump but below the 3.1% average of the past decade. The average retirement check will rise by approximately $56 monthly, bringing the typical benefit to around $2,071.

Notably, SSI recipients will see their first increased payment on December 31, 2025, due to the New Year’s Day holiday. Regular Social Security payments will be disbursed based on beneficiaries’ birth dates: those born on the 1st–10th receive funds on the second Wednesday of the month, 11th–20th on the third Wednesday, and 21st–end on the fourth Wednesday.

"The 2026 COLA is going to hurt for seniors. Year after year, they warn that Social Security’s meager increases won’t be enough."
— Shannon Benton, Executive Director, The Senior Citizens League

2. Higher Earnings Limits for Early Retirees

For those claiming benefits before full retirement age (FRA) while continuing to work, the earnings test limits are increasing in 2026:

• Under FRA for the entire year: The annual limit rises from $23,400 to $24,800 ($2,040/month). Benefits are reduced by $1 for every $2 earned above this threshold.
• Reaching FRA during the year: The annual limit increases from $62,160 to $65,160 ($5,430/month). Benefits are reduced by $1 for every $3 earned above this threshold.

These adjustments allow early retirees to earn more without significant benefit penalties.

3. Increased Maximum Taxable Earnings

High-income workers will contribute more to Social Security in 2026. The maximum earnings subject to FICA taxes will rise from $176,100 to $184,500. Employees and employers each pay 7.65% on these earnings, while self-employed individuals pay 15.3%.

Potential $200 Monthly Boost

A proposed bill, the Social Security Emergency Inflation Relief Act, could provide a temporary $200 monthly increase for six months (January–June 2026) on top of the COLA. If passed, this would:

• Apply to Social Security, SSDI, SSI, veterans’ benefits, and Railroad Retirement.
• Be tax-free and not affect other program eligibility.
• Deliver up to $1,200 in additional relief for beneficiaries.

However, this is still pending congressional approval.

Medicare Part B Premium Impact

Rising Medicare premiums could offset much of the COLA gain. The standard Part B premium is expected to jump to $206.50 monthly in 2026—a $21.50 increase from 2025. For many seniors, this would reduce their net COLA increase to just $34.50 monthly.

Planning for 2026

Retirees should:

1. Verify payment dates based on birth dates.
2. Monitor the $200 boost bill in Congress.
3. Factor Medicare premium increases into budgets.
4. Review earnings limits if working before FRA.

While these changes aim to maintain purchasing power, advocacy groups like The Senior Citizens League argue for recalibrating the COLA formula to better reflect seniors’ actual expenses, particularly healthcare and housing.