Six Changes Coming to Social Security in 2026

In January 2026, several changes to Social Security will take effect, impacting everything from credits and taxes to benefit checks and full retirement age (FRA) rules.

The Social Security annual cost-of-living adjustment (COLA) for 2026 is 2.8%, the Social Security Administration (SSA) announced on October 24. This is among the smallest COLA increases since 2020, as expected, and follows a 2.5% increase in 2025.

These changes don't only impact retirees — they impact current workers. Workers need to keep an eye on accumulating enough Social Security credits to get benefits, correct errors in their earnings record and understand how much of their wages will be subject to the 6.2% Social Security tax.

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The 2026 COLA was originally scheduled to be released on October 15 and was delayed due to the impact of the government shutdown. Although the shutdown is ongoing, some employees at the Bureau of Labor Statistics (BLS) were recalled to prepare the September Consumer Price Index (CPI), which is essential to computing the 2026 COLA. CPI was also released (PDF) on October 24.

Let's look at what's in store for 2026:

1. Social Security cost of living adjustment (COLA) for 2026 is 2.8%

The COLA for 2026 is 2.8%, which is slightly higher than last year's COLA of 2.5%. This matches the estimate provided by David Payne, staff economist for the Kiplinger Letter.

Older people are caught in a "COLA catch-22." A higher COLA means more money for retirees, but it's a direct result of higher inflation.

Conversely, a lower COLA means inflationary pressure is less acute, but it provides less money to help retirees with rising costs such as medical expenses and housing.

A big increase in Medicare premiums can consume almost half your annual increase. The 2025 Social Security Trustees Report projects a $206.50 monthly premium for next year, up $21.50 or 11.6% from 2025. That would represent the largest Part B increase in dollar terms since 2022, when premiums rose by $21.60.

According to the SSA, the 2.8% increase will translate to an additional $56 for the average retiree, resulting in an average monthly check of $2,071, up from $2,015 in 2025. Married couples will see an average increase of $88, raising their monthly benefit to $3,208 from $3,120 in 2025.

The Social Security Administration (SSA) automatically deducts the Part B premium cost from the Social Security benefits of most Medicare recipients.

That would effectively reduce the increase to the average Social Security check in 2026 from $56 to $34.50, after subtracting the projected Part B increase ($21.50) from the 2026 COLA raise ($56). In that scenario, the Part B increase will consume almost 40% of the monthly increase.

2. Full retirement age (FRA) goes up in 2026

In November 2025, the full retirement age (FRA) — the age at which individuals qualify to receive 100% of their Social Security benefits — will increase to 66 years and 10 months for those born in 1959. FRA gradually rises month by month, so in November 2025, those born in January 1959 reach FRA. The following month, December 2025, marks the point when those born in February 1959 hit their FRA, and this pattern continues into 2026.

Important note: The Social Security Administration has a special rule for those born on the first of the month: your benefits and FRA are calculated using the previous month for the birthday. Similarly, people born on January 1 should refer to the previous year.

In November 2026, the FRA will reach 67 for those born in 1960 or later — a threshold that will mark the culmination of the 42-year-long shift in raising the retirement age. The increase kicks in each November.

This is the final step in a gradual schedule to increase the retirement age from 65 to 67, initiated by the 1983 amendments to the Social Security Act. The legislation was intended to reflect longer life expectancies, reduce financial strain on the program, and bolster the trust fund.

Here is when the new FRA takes effect, by birth year:

• If you were born in 1960 or later, your FRA is age 67 and will be reached starting in November 2026 and after
• If you were born in 1959, your FRA is age 66 and 10 months and is reached starting in November 2025 and after
• If you were born in 1958, your FRA is age 66 and six months, and was reached in November 2024 and after

When you claim your Social Security benefits can greatly impact the size of your monthly check. If you retire at age 62, the earliest possible Social Security retirement age, your benefit will be lower than if you wait until your FRA. The more months remaining between age 62 and your FRA, the more your monthly payments will be reduced.

Early retirement will reduce your benefits by 5/9 of 1% for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced by 5/12 of 1% per month.

If you choose to continue working beyond your full retirement age and delay applying for benefits, you can increase future Social Security benefits in two ways: Each extra year you work adds another year of earnings to your Social Security record, and higher lifetime earnings can mean higher benefits when you retire.

If you delay taking your benefits, your monthly check will increase for every month you wait, until age 70. You'll get an extra 2/3 of 1% for each month you delay after your birthday month, adding up to 8% for each full year you wait until age 70. You stop accumulating delayed retirement credits when you turn 70.

 3. Social Security tax limit

In 2026, the wage cap for Social Security taxes will increase.

Social Security caps the amount of income you pay taxes on and get credit for when benefits are calculated. The Social Security tax limit in 2025 is $184,500, up $8,400 from $176,100 in 2025. The tax limit is indexed to inflation and is estimated to rise in 2027.

The 2025 Social Security Board of Trustees Report (PDF) estimated the maximum taxable earnings limit would be $183,600 in 2026, an increase of $7,500 from the 2025 ceiling of $176,100. The actual number came in $900 higher. The increase in the wage base will translate into paying a total tax of $11,439 for 2026.

Social Security will stop withholding taxes once you reach the maximum income amount for the year. However, there is no cap on Medicare taxes, meaning your total wages are subject to the 1.45% tax.

There is also an additional 0.9% tax for individuals earning more than $200,000 per year, $250,000 for married couples filing jointly, or $125,000 for married people filing separately. Employers are responsible for withholding this amount from your paycheck, although they're not required to match it.

4. Earnings test: You can earn more from work in 2026 while collecting benefits

Continuing to work while collecting Social Security might reduce your monthly benefits check due to a rule called the Social Security earnings test. Fortunately, those limits typically rise every year, leaving more of your monthly Social Security intact.

The Social Security Administration temporarily withholds $1 of a worker's benefits for every $2 earned above $24,480 ($2,040 a month) in 2026, up from $23,400 ($1,950 a month) in 2025.

When you reach full retirement age, the test is more generous — you only forfeit $1 in benefits for every $3 in 2026 earnings above $65,160, an increase of $3,000 over the 2025 limit of $62,160. Once you reach your FRA, there is no limit on earnings for the remainder of the year, and any withheld benefits are restored.

For beneficiaries younger than full retirement age (FRA) throughout the year in 2026: The annual earnings limit is $24,480; $1 in benefits will be withheld for every $2 earned above this limit.

For beneficiaries reaching FRA in 2026: The annual earnings limit is $65,160; $1 in benefits will be withheld for every $3 earned above this limit until the month the beneficiary reaches FRA.

 5. Earning Social Security credits in 2026

In 2025, you must earn more to qualify for Social Security credits.

You must earn a minimum number of Social Security credits to qualify for retirement benefits. The Social Security Administration (SSA) can't pay you benefits if you don’t have enough credits.

You must earn 40 work credits to become eligible for benefits, and you're allowed to earn up to four credits per year.

The SSA also uses the number of credits you’ve earned to determine your eligibility for retirement or disability benefits, Medicare and your family’s eligibility for survivor benefits.

To earn one credit in 2026, you must have wages and self-employment income of $1,890, and you must earn $7,560 to get four full credits. This amount increases annually, so it'll rise in 2027. In 2025, you only needed to earn $1,810 to earn a credit, $80 less than what you needed to earn in 2026.

Once you earn the 40 credits, earning more credits won’t increase your benefit payment. Instead, your retirement benefit is based on how much you earned during your working years.

6. The Social Security Trust Fund will be seven years away from facing insolvency

In Greek mythology, Icarus ignored the wise counsel of his father, flew too close to the sun with wings made with wax, and suffered the consequences. Today, politicians are ignoring the flashing red lights and increasingly dire insolvency predictions from the Trustees Report and have only acted to hasten the depletion.

How? By increasing benefits for some with the passage of the Social Security Fairness Act (SSFA) and depriving the fund of tax revenue through the new senior deduction included in the One Big Beautiful Bill (OBBB). The deduction will lower the taxable income for some seniors, which can decrease the amount of income tax they pay on their Social Security benefits.

From 2024 to 2025, the date of insolvency has moved up moderately, and the likely reduction in benefits that would be triggered by an insolvency has increased.

The reduction in benefits could trigger a 23% cut that would require future beneficiaries to save almost $150,000 to cover the shortfall; aspiring Gen X retirees would need to sock away an additional $701 a month. The longer the issue is ignored, the more drastic the solutions will have to be.

Preparing for 2026

Since the start of President Donald Trump's second term and the Department of Government Efficiency's (DOGE) audit of the SSA, the Social Security program and bureaucracy have come under intense scrutiny.

Since the confirmation of the new commissioner, Frank Bisignano, things have quieted down.

However, for 2026, there are still concerns about how tariffs will impact Social Security and Medicare funding and the cost of imported medications and equipment.

For more information about the 2026 changes, read:

Medicare Premiums 2026: IRMAA Brackets and Surcharges for Parts B and D

Nine Medicare Changes Coming in 2026

Higher Health Costs in 2026: A Look at Projected Medicare Premiums

6 Changes to IRAs, 401(k)s and HSAs in 2026

Related Content

• Social Security COLA for 2026 is 2.8%: What You Need to Know
• Medicare Premiums 2026: IRMAA Brackets and Surcharges for Parts B and D
• Social Security Payment Schedule for 2026
• The Average Monthly Social Security Check
• The Average Social Security Check by Age
• The 10 Most Costly Social Security Mistakes to Avoid
• 6 Changes to IRAs, 401(k)s and HSAs in 2026